“Watch” by Facebook Set to Rival YouTube

The impending launch of the new Facebook video creation app is set to give YouTube a run in the marketplace. In a move that is now representative of the turf wars and stiff competition that tech startups have given vent to, this new initiative is one that is huge.

The foray by Facebook is understandable, as the global online streaming market is expected to surge to billions of USD by 2019.

What is the market like?

It is easy to see the entry by Facebook into the online video market as a direct take on the dominance of YouTube. However, there are a couple of other players like VEVO, Netflix, Hulu, HBO Now and Amazon Instant Video, among others.

The video on demand market cannot be equated to the streaming of content online that is readily accessible through YouTube. The bulk of users on YouTube do not pay to access the available content as marketers and brand names make up for this gap.

By providing content freely to online users, YouTube reached into the depths of patrons of traditional television and the cable TV partners. The monetization of these online videos through sponsored ads and other promos is a money-making avenue for online streaming channels.

What Facebook will do

According to the official position of Facebook PR team, the new initiative will be called Watch. It will offer users the opportunity to see original shows as well as other syndicated materials from well-known TV shows.

Facebook is noted to have reached an agreement with the likes of ATTN, BuzzFeed, Condé Nast Entertainment and Tastemade. This will expand the base of ready content that users can access.

While the date for the launch is not yet known, what is clear is that this is imminent.

The Ad Dollars

The burgeoning size of the online audience is a ready and fertile ground to be explored. The rise of video streaming of all kinds on the Web has led to more video content out there.

The advertising dollars count in billions on an annual basis, and there is a big fight brewing. The turf war will be between the respective market players as far as video making, streaming and optimization are concerned.