Facebook is preparing to give YouTube a serious run for its money, but the number one video platform on the web is not fearful of its first genuine competition in the last decade.

According to the head of content and business operations at YouTube, Robert Kyncl, he claims that it would be around a decade before Facebook and YouTube bumps into each other. That is clearly playing down any threat the social network could pose.

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Facebook has been putting ads on the videos of its 1.4 billion users for quite some time now, but recently the social network took a step further into the realm of where YouTube is a king. It offered to share advertisement earnings with some content publishers, a move that puts it in direct competition with YouTube.

From what we've come to understand, Facebook will match the revenue split provided by YouTube. This means content creators will gain 55 percent of the earnings, and Facebook will walk away with 45 percent.

Should Google be afraid?

While the company is playing down the threat right now, we believe it knows Facebook could become the first to pose a real problem for YouTube in the coming years. We've seen in many cases where the same videos on YouTube get more views on Facebook, and that is because users don't have to leave the social network since it is a multi-purpose website.

We envision by the end of 2016 or early 2017, Facebook will begin to open up its ad revenues to every content creator, giving them another revenue stream outside of YouTube.

What about other competitors?

There's no other right now, but rumors in the past claimed that Yahoo is planning something big; however, with Facebook making its intention clear, Yahoo may need to make a stamp sooner rather than later because the competition is not slowing down. Both Facebook and YouTube are already well established in the online video segment, while Yahoo will have to grow from nothing.

Because of this, we envision the possibility of Yahoo cancelling its plan to enter the online video market.

TagsYouTube