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Facebook reportedly making exclusive content deals with Indian video creators

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Facebook is reportedly offering free ad credits to and making exclusive deals with video creators, actors and artists in India, reports ET. With free ad credits, Facebook is asking content creators to make their content exclusive to Facebook for 48-72 hours before the content is uploaded to other video platforms like YouTube, the report adds.

112 million MAUs

In March, we’d reported that Facebook’s Indian user base had grown by ~5.35% from 112 million monthly active users (MAUs) to 118 million MAUs in Q4 2014. Facebook India’s daily active users (DAUs) were at 55 million, out of which 49 million DAUs came through mobile, accounting for over 89% of Facebook’s daily traffic as of December 2014, the company informed Medianama.

Facebook VS YouTube, who wins?

A Business Insider report claimed that Facebook’s video has been growing consistently since January last year where YouTube has been seeing inconsistent crests and troughs in the same timeline. It adds that brands who used to publish YouTube videos to Facebook are now posting Facebook videos to Facebook. The report also mentioned that news media and publishers are moving towards native Facebook video.

Facebook sees 4 billion video views every day

A PBS report stated that Facebook had surpassed 4 billion daily video views in its native video player last month. 75% of those videos viewed globally were through mobile. In the same breath, around 73% of Facebook’s ad revenues for the quarter ended March 31, 2015 were from mobile ads, up from 59% contribution in the same quarter last year and 69% contribution in the previous quarter.

More video for video consumers

TheNextWeb also reported that Facebook was seeing 3 billion video views daily in January this year and had reportedly started giving priority to relevant video content to its users in June last year. In a blog post, Facebook had stated that: People who tend to watch more video in News Feed should expect to see more videos near the top of their Feed. Conversely, people who tend to skip over videos without watching them should expect to see fewer videos.

YouTube’s interactive ads for monetisation

Last week, YouTube added buy buttons to TrueView ads, where users can click to buy stuff after being redirected to that product page. This will be rolled out over desktop and mobile in the coming months. YouTube added this feature after it noticed that users were searching for a product seen in the YouTube ad on Google after having watched a video on YouTube. This move reduces the user’s ‘path to purchase’, the report mentions.

Our Take

India is quickly becoming a place where not only is video consumption on the rise, but the competition to gain users is heating up rapidly, too. More and more content creators (like Qyuki, Hotstar, #fame etc) are entering this domain to claim a bite of the pie. Facebook already sees traction on its mobile platform and it will be easier for the company to push video to its users, either on mobile or web. Despite the fact that YouTube remains a major source of video consumption for audiences worldwide, that might change in the near future if Facebook continues to stress on video on Facebook.

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