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Facebook will give video makers a cut

Tucked inside Facebook's call with investors Wednesday after a strong third-quarter earnings report — which included a milestone of more than a billion daily users — was the revelation from chief executive Mark Zuckerberg that Facebook content owners will eventually pocket a revenue share of video views.

"There's a certain class of content which is only going to come onto Facebook if there's a good way to compensate content owners for that," Zuckerberg said when asked how to keep media partners happy. "We've recently rolled out the business model for this. We'll give a revenue share on a portion of the views to content owners," he said, as Wired has reported.

This is obviously welcome news for Facebook video creators, who will be enticed to remain faithful and linger on the social network for as long as possible. Whether it's to consume videos or news articles, tech companies would prefer users remain agnostic to a single platform.

But the implications of a video-view revenue cut are much broader — and potentially damaging for traditional publishers. Old-school media companies along with tech giants like Apple and Twitter are all chasing the same holy grail: Loyal content consumers, who linger and stick around amid a sea of too many content choices.

To grasp the scope of change unraveling in content creation, which is increasingly fragmented, consider all the mobile apps on your smartphone. How many do you click daily? Studies consistently show users thumb through only a handful of apps on a regular basis. This is why tech bellwethers — from social media platforms such as Facebook to traditional hardware companies like Apple — are churning out news products, designed to court and engage audiences to their brand-ecosystems.

Beyond the video cut for creators, Facebook plans to announce the launch of Notify, a standalone news app, the Financial Times reports. Featured content will come from media partners including Vogue, The Washington Post...


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