Social Media

Facebook, YouTube in 'awesome dogfight': Calacanis

Facebook, YouTube in 'awesome dogfight': Calacanis
VIDEO2:5502:55
Facebook, YouTube in 'awesome dogfight': Calacanis

A YouTube-backed celebrity attacking Facebook in an op-ed for "cheating," "lying" and "stealing" its way to the top of the streaming business is just the latest development in what has become an "awesome dogfight," in the words of angel investor and Inside.com CEO Jason Calacanis.

For its part, Facebook defended its shorter definition of what constitutes a "view," but it's an aside to the main theme for investors—Facebook is seriously ramping up its push into video and coming for YouTube.

"The truth is Facebook is the biggest threat to YouTube," Calacanis told CNBC's "Squawk on the Street" in an interview. "It will take four or five years, but they are going to be a very viable competitor."

Part of the reason why he thinks so has to do with what the social media giant has done as of late to incentivize users to side with Facebook over YouTube when it comes to hosting video. For example, Facebook's algorithm might only pass posted YouTube content to a few users, whereas video on Facebook's servers might be seen by four to five times as many people, Calacanis said.

"That is a really aggressive tactic and they are sharing revenue which is a direct attack on YouTube's model," he said.

Calacanis also posited that Facebook isn't far off from using $500,000 in advances against the revenue share its content creators stands to gain by using its native video, "and when that happens it's going to be an awesome dogfight," he said.

As a kicker in the battle for video, Calacanis cited rumors that Facebook could be working on a dedicated video app, which would help leverage Facebook's huge mobile lead.

What's ailing Twitter
VIDEO2:5802:58
What's ailing Twitter

As for the recent turmoil at Twitter after shares sunk to record lows on a candidly bleak conference call, Calacanis believes the company could have done better.

"Who wants to come work for a company or own a stock if the management isn't real bullish on it," he said. "It's great to be realistic, but you also have to show the good stuff as well, so I think they are making a little bit of a mistake."

With the likes of its live-streaming app Periscope gaining in popularity alongside Vine, the angel investor hinted there might be plenty to be optimistic about.

"They'll get the product to grow, I think, over time, but maybe it needs to be a house of brands as opposed to one brand that everything is riding on, he said. "And the growth of Periscope and Vine are signs that they can actually do this very well."

Twitter and YouTube did not immediately respond to CNBC's requests for comment.