In an article on Giga OM, it was reported that Facebook Inc (NASDAQ:FB) has signed deal with National Football League according to which, the social media giant will host videos from the League. The videos will include game clips, highlights and much more. The videos will be followed by ads. This is unprecedented from the League’s end because of the fact that it has always stopped Facebook Inc (NASDAQ:FB) and Twitter from hosting any kind of game videos. The revenue generated from the video ads will be cut in half between the League and Facebook Inc (NASDAQ:FB), according to the source.
Youtube is regarded as the video juggernaut in the tech industry. The source said that Facebook Inc (NASDAQ:FB) is apparently taping deals in all aspects of the industry to gain revenue. Video ads, photo sharing services, messaging services, social media, wearables— there is almost no area where Facebook Inc (NASDAQ:FB) has not put its flags.
Facebook Inc (NASDAQ:FB) is not only looking to capture video ads, it is also looking forward to start its complete video service like Youtube, the source said. Facebook is persuading Youtube stars to sign deals. If the social media giant gets success in this, this will be a major blow to Youtube. Facebook Inc (NASDAQ:FB) is famous for converting deals into big revenue generation streams within no time.
The source quoted Peter Kafka, who said that Youtube viewership is around 6 billion hours every month and Facebook Inc (NASDAQ:FB) users watch around 1 billion videos clips daily. Facebook Inc (NASDAQ:FB) video platform will bring major problems for Youtube in the future.
Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).