Facebook Revenue Model To Fill Users Pockets; Social Networking Giant Announced To Share Ad Money With Video Creators

Jul 05, 2015 10:46 PM EDT

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In a surprising move, social networking firm Facebook has announced that it will be sharing the revenue generated from videos with those who create it, in order to invite more people to share their videos on its portal.

According to Wall Street Journal, Facebook has come across a startling fact as per which, its users are watching close to four million videos per day on the network itself. Armed with this data, Facebook has decided to make more revenue out of the video posts. However, at the same time, the social networking giant is faced with a challenge of generating new and interesting video content on a daily basis. In order to overcome this challenge, Facebook has announced that it will be sharing the revenue generated from the videos with those who create it. This move is expected to motivate people to come forth and share video posts more actively.

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Another report on Computer World said that Facebook would be introducing a new feature called Suggested Videos. Users with this feature will be prompted to see videos of their choice from all over the globe. When they will click on a particular video, they will also be prompted to watch other videos, some of which will be advertising content. Each time a user will click on the advertising video, those supplying the content will get paid. This payment will be a partial part of the revenue generated through the video.

The new feature will be seen in the News Feed section itself. However, as of now, Facebook is just testing the feature and will be rolling it out across the iOS users. Once the feature clicks and the response generated is positive, chances of a worldwide introduction are also high.

Facebook announced the new revenue sharing model on Wednesday itself wherein it was revealed that it would keep only 45 percent of the money generated through the video. The revenue sharing model is quite similar to what YouTube does. However, in case of Facebook, the receiver will have to split the revenue in many more ways, leaving him or her with a relatively smaller cut.

TagsFacebook video post, Facebook video revenue, Facebook news