Facebook is to start paying some video creators for uploading their clips to the platform.
The company is launching a Suggested Videos feed that curates a sequence of clips, interspersed with adverts.
Videos that keep people watching for longer will earn a greater share of the revenue from these ads, with Facebook keeping 45% for itself.
Facebook says its users clock up four billion video views daily. One expert said it posed a threat to YouTube.
“Facebook is aggressively moving into the video space,” said Eleni Marouli, advertising analyst at IHS consultancy.
“In December 2014, Facebook surpassed YouTube in views for the first time, and we predict YouTube will lose share from next year onwards.”
In June, US broadcaster HBO announced it would stream some of its programmes on Facebook.
Offering a cash incentive could encourage more publishers to upload on the platform.
While YouTube gives content creators 55% of the revenue from ads displayed before their videos, Facebook will split the 55% it is offering between several creators.
“It’s not an unusual, or generous model,” said Ms Marouli. “But we could see a monetisation battle between Facebook and YouTube, to entice creators onto the platform.”
Facebook made $3.3bn (£2.1bn) in ad revenue in the first quarter of 2015, 73% of it from mobile ads.
“Facebook is very adaptable,” said Ms Marouli. “In 2012, they had zero mobile-ad revenue. In two years, they’ve raised that to over 60% of their ad income.
“Based on our forecasts, by 2018 Facebook will have 25% of online video ad revenue in Europe, and more in the US,” said Ms Marouli.