Facebook Allowing Embedding of External Videos (such as YouTube Videos)

On October 30, I wrote an article about how Facebook should create their own YouTube competitor so that Facebook would retain traffic on their own website which is a strategy that MySpace decided to pursue as reported by Mashable. News Corp., the owner of MySpace was complaining that YouTube received a large amount of traffic from embedded YouTube videos on MySpace profiles.

Today I noticed that embedded videos are now available for sharing on Facebook via Facebook Shares Facebook Share. I know this feature existed for a while, but I had no idea that videos would be embedded in Facebook itself. Here’s a sample screenshot:
Facebook Video
From the rumors I have heard, Mark Zuckerberg is valuating his company as a $2 billion company, so he should retain users to stay on Facebook for as long as possible and develop a Facebook Videos section for users to upload content through a video upload content page similar to the Photo Album sharing page. By giving users the ability to add YouTube videos, he is just giving Google more money and losing potential revenue for his own company.

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