All of a sudden, well-armed rivals are raising the stakes for YouTube boss Susan Wojcicki.
And why not — it’s where the money is.
It is predicted that online video consumption will grow by 57 percent over the four years ending in 2017, and YouTube’s estimated $8.5 billion in revenue is just too enticing not to try to encroach upon.
Facebook is the latest tech rival to take aim at the Google-owned video giant.
Mark Zuckerberg’s social network, with 1.59 billion users worldwide, is searching for fresh ways to work with the music industry, The Post has learned.
Facebook’s move comes at a time when YouTube is increasingly under siege by its critics.
Within the past few weeks, the social network has quietly initiated talks with music labels about licensing a limited amount of songs that users can upload to, say, summer vacation videos or birthday parties, sources said.
The idea, if it comes to fruition, would be a way to keep music labels happy at a time when they’re frustrated about the volume of unlicensed user-generated content at YouTube.
Facebook late Sunday confirmed it was testing a new product, called Slideshow, that includes music from Warner Music Group to help users create “soundtrack options.”
“We are always testing ways to help people better share their stories with friends,” a spokesperson for the Menlo Park company said in a statement. “Slideshows are a new way for people to share photos and videos in a creative and succinct way. To date, we’ve been using Facebook-owned music to accompany these slideshows, we will now be testing the use of a limited amount of music from Warner Music Group as soundtrack options.”
Facebook’s music offensive, aimed at keeping user-generated content inside its walls, emerges just days after Jeff Bezos’ Amazon announced it would launch Prime Video Service as a new hub for amateur and professional videos of all kinds.
To be sure, Facebook’s efforts in the music space have been limited — and YouTube’s head start and entrenched leadership position put in doubt just how many eyeballs any rival can steal away from the mega-popular video-streaming brand.
While Facebook once held talks about a possible acquisition of music industry-owned Vevo, it hasn’t made great strides in the revenue-rich video arena.
Facebook, Instagram and Messenger users currently spend a stunning 50 minutes a day using the services, Zuckerberg revealed on the company’s last earnings call. Facebook also reported an eye-popping 57 percent increase in ad revenue to $5.2 billion.
Overall, average per-person online video viewing is expected to expand to 1:12 in 2017 from 46 minutes in 2013, according to eMarketer.
“Facebook is trying to figure out how to keep video as part of its experience,” said one source familiar with the talks. “They’re looking for a way to take photos, add licensed music and share it with friends.”
“They’re thinking about launching it first in Australia,” the source added.
Zuckerberg said on the company’s earnings call, “We’re at the beginning of a golden age of online video.”
YouTube is currently at the center of a storm with music industry figures such as Irving Azoff, Nikki Sixx and Debbie Harry all voicing complaints that YouTube isn’t paying enough to artists.
The music industry wants to collect a larger slice of YouTube’s revenue, which UBS analyst Eric Sheridan put at $8.5 billion last year. Google parent Alphabet doesn’t break out YouTube’s revenue.
Facebook, Amazon and, of course, Google are not the only ones fighting for more video ad dollars. Snapchat and Twitter also are in the hunt.