Video streaming site YouTube doubled its mobile traffic, but the success is becoming a source of friction between the world's top content distributor and the music industry.
The current year has been good for the Google-owned company that is enjoying doubled investments from its top 100 advertisers.People are spending 60 percent more time on the site this year. YouTube expects to cap the years with a $6.6 billion revenue, 38 percent higher than last year.
Despite the promising numbers, dominant music companies Universal Music Group, Sony Music, and Warner Music Group did not feel the growth in their ad revenue shares, NY Post reported.
Questioning YouTube's efforts and sincerity in financially contributing to artists, the music labels have started giving more attention to rival sites such as Vessel and Snapchats, loosening YouTube's grip on free ad-supported music videos.
Facebook Unveils YouTube Rival
Amidst friction with its partners in the music industry, the video streaming giant sees a daunting rival as Facebook recently revealed a new video sharing advancement.
Facebook video tool features a video update system and a library for publishers to customize video distribution, upload secret videos, and centrally manage uploads, CNBC wrote.
The advancement will also allow uploaders to segment viewers by age, gender, location, and language. Videos may labeled based on categories and may have custom thumbnails.
Currently devising its video revenue sharing scheme, Facebook serves Fox, National Basketball Association, and Funny or Die. The social media network saw its potential in video venture following the success of ALS Ice Bucket challenge in 2014.