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Facebook and YouTube are some examples of platforms that offer equity compensation to its content creators.

1. Facebook

  • Starting in January 2018, Facebook created what would become the most viable streaming service yet. In the first half quarter of 2019, viewership statistics showed 153,000 active streamers on Facebook.
  • Facebook’s “Level Up” alongside other partner programs have given some of its live gamers a platform and access to multiple revenue streams. Creators have admitted that they have been making more money off Facebook platforms than other platforms such as YouTube or Twitch.
  • Facebook Gaming is available on the platform’s left sidebar of the app. There are various recommended live stream pop-ups immediately, showing some of the most popular games such as Fortnite, Pokémon GO, Apex Legends, and Grand Theft Auto V.
  • Facebook’s compensation scheme includes giving creators the ability to select better placement for ads in their videos. In this case, Facebook allows creators to curate natural break for ads that include non-interruptive advertising formats such as image-based or pre-roll ads. Additionally, creators on Facebook can now enjoy access to supporter-only groups at a monthly fee. The new “fan subscriptions” feature allows creators and fans to interact in a more private space where creators can offer special rewards such as merchandise at a fee.

2. YouTube

  • Google’s YouTube is one of the most dominant platforms for video content and video game streaming. To make money on YouTube, a creator’s channel has to pass through a set of benchmarks. YouTube depends on an automated strike system not only before but also after monetization; a process that enables YouTube to gauge or assess whether a channel is sticking to the set community guideline.
  • A YouTube spokesperson said “We’re happy to see Gaming creators succeed on our platform and are continuing to invest on YouTube. It’s exciting to see all the video platforms committed to the Gaming community as it’s great for the ecosystem overall.”
  • YouTube’s compensation scheme involves giving creator’s the freedom to create an account and turn on account monetization by first accepting YouTube’s advertising guidelines and connecting to an AdSense account for income. Creators must first agree to Google’s ad revenue share for YouTube before enabling ads. In this case, content creators agree to split 45/55, where Google keeps 45%, while creators keep 55% of the revenue generated from YouTube ads.
  • YouTube provides creators with tools such as Apple’s/AAPL iMovie or Adobe (ADBE) Premier, for editing videos. Alternatively, creators may opt to upload a raw video from their device and use the YouTube video editor. Creators can promote their content on various online channels to get more views, as more views translate to more money.
  • YouTube provides benefit levels for content creators to encourage and support them by offering opportunities. These opportunities and benefits are subject to a creator’s specific level on their channel. These levels are; Graphite level for channels with 1 -1,000 subscribers, Opal level for channels with 1,000-10,000 subscribers, Bronze level for channels with 10,000-100,000 subscribers, and Silver for channels with 100,000 subscribers and beyond. The more the subscribers, the more money a creator is likely to make on this platform.
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