Facebook Inc (FB) Is Putting To Use Lessons It Learned At The Expense Of Google’s YouTube Mistakes

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The race to dominate the video sharing market is on and Facebook Inc (NASDAQ:FB) is trying to apply lessons learned from Google Inc (NASDAQ:GOOGL)’s YouTube. Facebook has seen YouTube sued by content creators for copyright issues and that is something it wants to avoid. The company hopes that being strict, by discouraging authorized use of copyrighted content on its platform, will give it a great advantage in the video sharing market.

Facebook currently boasts more than 4 billion video views each day, the number having grown from 1 billion video views viewed per day back in September 2014. With video becoming one of the most popular contents being consumed on the platform, Facebook believes it can make some extra dollars competing with YouTube.

Declaring early war on piracy

The strategy that the company has figured out is avoiding legal issues arising from copyright holders. As such, Facebook Inc (NASDAQ:FB) has a technology that flags and deletes videos that feature copyrighted materials without due authorization for such use.

Google’s YouTube didn’t take early actions to prohibit piracy on its platform. For that reason, the company has faced lawsuits and protests from content creators that claim illegal use of their materials on YouTube. Google was sued by copyright holder Viacom for $1 billion over copyright infringement. The legal battle between Google and Viacom was lengthy, lasting seven year with the issue only being resolved in 2014.

To keep itself safe from copyright-holder attacks, Google has entered into revenue sharing deals with copyright holders.

Monetization challenge for Facebook

Although Facebook has declared a tough war against piracy, the restrictions and lack of monetization for video creators have hindered the company’s gains. While Google’s YouTube shares ad revenue with video creators, Facebook doesn’t have such a provision. For that reason, video creators are currently more inclined to use the YouTube platform than Facebook to share their content.

It would help Facebook Inc (NASDAQ:FB) to keep the fight against piracy alive while also giving video creators incentives to share their videos on its platform.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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