The Wall
Street Journal has confirmed that Facebook “reached
out to some of the Google Inc.
owned video site's biggest content
producers and encouraged them to test distributing their videos on the social
network,” suggesting an attempt to enter the video advertising market in
a bigger way.
Currently, Facebook does not have the breadth of partnerships
with content producers that YouTube has developed over the years. While many
content producers post snippets or links to their videos on YouTube, the Wall
Street Journal proposes that Facebook may be engaging in revenue share negotiations
with these owners and that users may start to see new types of video content
with ads as soon as “next month.”
SNL
Kagan analysts believe Facebook could be viable competitor to YouTube due to
its large amount of users and how engaged they are with the Facebook platform. SNL
also cites the possibility that additional competitors may surface threatening
YouTube’s 20% share of the online video ad market, including Yahoo! and
Comcast.
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