I have an article coming out on Seeking Alpha today I go over my thesis on why Facebook video views are not real. I am still short Facebook because of macro issues and valuation, but this issue needs to be discussed because of Facebook's recent report. Analysts ask Facebook about whether it will create its own video player to rival YouTube. The problem with this concept is most of Facebook's video views come from stolen content. This would be like asking a bank robber if he was going to start his own bank! The bank robber can't create his own wealth, so he steals from others. Facebook can't create its own video library of content created by independent creators, so it allows freebooting to occur. Freebooting is when Facebook allows videos to be downloaded from YouTube to be re-uploaded to Facebook without providing any source material or paying the original creator. These Facebook videos often get more views than the YouTube videos do because Facebook counts a view after 3 seconds of it playing without sound. When Facebook announces that 500 million people watch video on Facebook everyday, it is worse than a vanity metric because the views are not Facebook's. In Q1 2015 725 of the top 1,000 videos viewed were freebooted content. I expect a class-action lawsuit to be filed this year after Facebook has not tried to solve the situation in the past 12 months.