It’s almost every day that Facebook brings out some latest change in its Watch video platform. In its latest announcement, Facebook announced its plan to expand the platform into a more YouTube-like offering by giving out tools to creators and rolling out opportunities for monetization of the content.


What CNBC has to say on this latest development?

“Facebook wants to allow more people to create their own shows on Watch, according to three media agencies who asked they remain anonymous because the conversations are private. Instead of buying rights to these shows, however, Facebook wants to create a system where creators can upload their shows for free, then earn a cut of the revenue from ads placed on that content — similar to how YouTube pays its online creators.”


Why the change has been brought about?

The shows for which Facebook has been paying big bucks to bring more audience on the platform is about to see its end. Their main focus has always been on the user-generated content like live-streams which will give more credit to the publisher. Following the debacle, the CEO announced “We just want to start the flywheel going [with publisher content] so that way there’s content and communities that are there that support this use case of people coming to Facebook to specifically engage in that. Long term, our hope is that the business here will primarily be through revenue shares of videos that normal creators and businesses put into the system, rather than the ones we proactively go out and license ourselves.”


The Growing Worth of Videos

While YouTube claimed to have 1.5 billion monthly logged-on viewers, Facebook houses 2.13 billion users with an active video viewing. With Facebook’s latest change, there are some probable benefits for the creators whose video would appear in the live stream of a premium program, but it would definitely create some problem for YouTube. Talking about videos, Netflix too has a major role to play. But, neither YouTube nor Facebook is going to compete with Netflix anytime soon. The viewers are more inclined to watch digital content on TV which is easily integrated by YouTube and Facebook on the devices but using a Watch video would give some leverage to the creator’s content.


A blessing for Marketers

With a large number of the audience watching ‘Watch’ videos, there is a heightened opportunity for the creators to gain a larger audience through video content and video ads. Moreover, this would be a great marketing medium at a lower cost.


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