Facebook is set to offer video creators a cut of revenue from ads that display before or during their videos. It’s the first time Facebook has shared video revenue, and may challenge YouTube for the attention of creators.
Speaking to Re/Code, Dan Rose, Facebook’s VP of partnerships says “A lot of [our partners] have said this will be a big motivation to start publishing a lot more video content to Facebook. That’s exactly what we’re hoping for.”
Revenue sharing only comes via a new Facebook feature called Suggested Videos, a sub-section of NewsFeed. If you were to click on a sports highlight in NewsFeed, that video may open in Suggested Videos, which would also display other sports highlight videos.
The revenue split is reportedly the same as YouTube: 55 percent goes to the creator, and Facebook keeps 45 percent. The tricky part is that ads won’t play as they do on YouTube.
In the Suggested Video feed, an ad may be interspersed between three or more videos. The 55 percent will be split between those three creators based on how much of their respective videos you watched.
Suggested Videos is currently in testing, and is expected to stay there for a few months. Facebook is still working out some finer details, including how it plans to charge advertisers.