Facebook's Video Expansion Not a Threat: YouTube
Facebook's video expansion doesn't pose a threat to YouTube business, according to a company's representative. The Google-owned video streaming company said both companies will be able to grow rapidly for years by cannibalising the television advertising market.
Robert Kyncl, head of content and business operations at YouTube, was quoted as saying by the Financial Times that the online video market was expanding so fast that "it will be a decade before we bump into each other".
He added Facebook's and other players' arrival shows that online video is "becoming mainstream", but it would not derail the YouTube juggernaut.
Facebook has 1.4 billion monthly active users and has been putting video ads into users' feeds for more than year. However, it was only recently it started a trial to share advertising revenue with video creators who publish on the social network.
Facebook has decided to share 55 percent of the proceeds of the ads that run next to their videos with the video creators, share same as YouTube.
"We're running a new suggested videos test, which helps people discover more videos similar to the ones they enjoy," a Facebook spokesperson said in an email reply to an AFP inquiry.