Facebook Inc launched its Watch video service to U.S. users on Thursday with plans to allow people to submit shows, as the No. 1 social media network takes on Alphabet Inc’s YouTube to boost advertising revenue.
The move comes as advertisers are increasingly shifting budgets from television to online as more viewers prefer to watch their favourite shows on their smartphones and tablets.
On Watch, which Facebook began testing earlier this month, users can see hundreds of shows from the likes of Vox, Buzzfeed, Discovery Communications Inc, Walt Disney Co’s ABC, as well as live sports like Major League Baseball.
Americans are spending over 73 minutes per day watching digital video, up more than 7 per cent from last year, according to eMarketer data. TV watching has dropped 2 per cent from last year to 244 minutes a day, a trend that is expected to continue.
Facebook is initially paying some content creators for shows to drive interest. The company is paying US$10,000-$35,000 for shorter form shows and up to US$250,000 for longer form scripted shows, sources told Reuters in May.