YouTube says that Facebook doesn't pose threat yet
Google-owned YouTube has downplayed the threat of Facebook displacing its dominance of online video, saying both companies will be able to grow rapidly for years by cannibalising the television advertising market.
Robert Kyncl, head of content and business operations at YouTube, was quoted as saying by the Financial Times that the online video market was expanding so fast that "it will be a decade before we bump into each other".
He said Facebook's and other players' arrival shows that online video is "becoming mainstream", but it would not derail the YouTube juggernaut. Facebook, which has 1.4 billion monthly active users, has been putting video ads into users' feeds for more than a year.
Recently, it muscled further into YouTube's territory with a trial to share advertising revenue with video creators who publish on the social network. Facebook will match the revenue split offered by YouTube, giving content creators 55 percent of the proceeds of ads that run next to their videos.
Revenue from ads appearing in the Suggested Videos feed will be shared, with 55 per cent of the money going to those providing the content, according to Facebook. The California-based social network said that it is not taking any money in from advertising while it tinkers with the formula for serving up video marketing messages.
