nScreenMedia OTT multiscreen media analysis

nScreenNoise – Does YouTube finally have credible competition?

nScreenMedia Video Podcast

YouTube is a monopoly (0:20)

With 1.5 billion unique viewers every month and 400 hours uploaded every minute, YouTube stands unchallenged as the leading video site. However, it has run into trouble recently and Facebook and Amazon stand ready with their own influencer programs to take full advantage of the stumbles.

YouTube’s trouble with advertisers and creators (0:54)

YouTube advertisers were angered after their ads were placed against inappropriate content back in March. Creators also became frustrated after many of their videos were demonetized for having content incorrectly flagged as inappropriate by YouTube algorithms. The issue came up again just recently after inappropriate content was found on YouTube Kids.

Facebook’s Influencer Program (1:44)

Although it is not available to regular Facebook users, some creators are making a living from the ads in their video posting on the social site. Laura Clery is one of these people. She can insert mid-roll ads in her videos, gain sponsorships, and reach a large audience. This experimental Facebook program is still in its early stages but it makes Facebook and YouTube more direct competitors. Another area where they overlap is with new Facebook features such as Watch and LIVE.

Amazon Influencer Program (3:04)

Amazon has had its Amazon Video Direct service open to Multi-Channel Networks for about a year. Recently it opened its Influencer Program, where anyone who has a following and sells products can participate. Creators entering the Influencer Program are paid YouTube ad rates, are paid based on the time people spend watching the videos and receive a cut from the products they sell. Since Amazon provides the product fulfillment visibility into how their products are selling is much better than on YouTube.

What the future holds for YouTube (4:19)

YouTube will still remain the dominant platform for the foreseeable future as Facebook and Amazon’s programs are still relatively new. YouTube also has such a large audience that it will continue to attract advertisers and creators alike. However, as it faces challenges in the future it must be more careful to tackle them without angering creators. Or those creators may decide to take their content and brand elsewhere.


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