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Saturday, September 02, 2017
Facebook Wants to "Steal" Some Ad Dollars from Youtube

Facebook has launched its Watch video service to U.S. users with plans to allow people to submit shows, as the social media network vies with Alphabet's YouTube for advertising revenue.

Advertisers are shifting more of their budgets from television to online as viewers have migrated to watching shows on smartphones and tablets.

On Watch, which Facebook began testing earlier this month, users can see hundreds of shows from the likes of Vox, Buzzfeed, Discovery Communications Inc, A&E Networks, Walt Disney Co's ABC, as well as live sports like Major League Baseball.

Facebook is initially paying some content creators for shows to drive interest. The company is paying $10,000-$35,000 for shorter form shows and up to $250,000 for longer shows.

Facebook plans to eventually open the platform to everyone to submit shows for approval and share 55 percent of ad revenue.

The company is testing how ads will work within the shows.

Facebook said Watch is more personal and community-oriented than competitors. For example, it can suggest shows based on a user's interests and friends can share their thoughts as they watch a video.

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