- As the media industry moves to streaming. They could crack the code that Apple couldn’t.
- Every single Media App in one place.
In what has probably been the most dramatic week in media history, Facebook’s launch of Facebook Watch brings a new change to the industry that gives us consumers some interesting options in the future.
If Facebook really wants to be a content creator it’s going to have to take big strides to become relevant in this space, and that means that it most certainly has to look at acquiring media companies of its own. Number one on that list is Netflix which has been ripe for acquisition for years. The user interface leaked in the press release looks a lot like Netflix, and all Facebook would have to add to the Watch tab is a little Netflix symbol to be complete.
It was a year ago, that Mark Zuckerberg claimed Facebook, “was a tech company, not a media company.” I didn’t agree with him then and now that attitude might be changing. But let’s say Netflix doesn’t want anything to do with Facebook and they do just fine without Disney. If Facebook’s push into original content pays off, we could be looking at a new type of ISP, or rather a Content Service Provider (CSP) or maybe potentially Original Content Service Provider (OCSP).
Facebook’s earnings come largely from advertisers and not from users, a strategy very few people understand which has propelled it into one of the largest companies in the world. If they were to start charging users for content and news like they have talked about, earnings could easily quadruple what they are making now. It’s only a matter of time before these initiatives take off because users won’t want to be bombarded by ads whenever they go on the social network.
It’s a bit clustered now, with video Facebook will only get more populated with ads. Who knows what type of advertising scheme Facebook has in store for Watch. 6 second clips between scenes? Entire 4 minute commercials in between scenes? I don’t know how much the public will put up with more mobile ads! Will it have paid content from the start?
But what about original content? If Netflix doesn’t play nice and chooses the more independent route, why not open it up to it’s 2 Billion user-base so that they can create and share their own TV shows and movies? YouTube is good for short clips and all, but not so great for feature length films and TV. Facebook already has Facebook Live which has been a smash hit and has changed politics as we know it. Independent artists have been longing for a service exactly like that. Maybe even one that leads directly to Hollywood.
If Facebook can be successful with their new paywall for news organizations, and they are successful with Watch. Another logical step for Facebook is the merging of original content services into one place! Facebook is always looking at ways to get people to spend more time on their site. If every media company agrees to be under Facebook’s umbrella. That would be the dream scenario for Mark Zuckerberg.