First it was plain old social media; then it became mobile and then transformed into videos. Now, Facebook is gambling the biggest media of them all: Television. According to The Wall Street Journal, Facebook is developing a “video-centric app” for set-top boxes, including the Apple TV, so it can put video content from the social network on screens in the living room. It would also help Facebook get into video advertising. Facebook’s been embracing video a lot over the past couple years, with a high-quality upgrade to its video platform and the introduction of live broadcasting.
While Facebook declined to pass comment on the reports such a move would make a great deal of sense from its perspective by positioning the company within the lucrative live stream and video advertisements sphere.
TV presence would give Facebook the leg-up it has long coveted to convince advertisers to purchase more video ads as opposed to low budget text and photo based promotions.
Facebook is, indeed, full of videos at this moment, but they’re not the kind of videos that draw any significant attention or television ad dollars. Sources state Facebook is looking for something more robust than the short clips that dot the social network’s landscape, instead looking for items that are somewhere closer to ten minutes long. This may end up including exclusive entertainment, scripted content, sports shows, and more.
Facebook is world’s 2nd largest digital advertisement platform after Google, and the majority of their revenues is generated from the advertisements placed in and around the News Feed section.
However, this ratio is drastically going down now, and they need to come out with fresh avenues for placing advertisements. As per Reuters, Facebook will report a growth of 46% for 2016’s last quarter, which is their slowest growth in terms of revenues in last 5 quarters. And saturation of News Feed based advertisements is the main reason for the same.
This is the reason Facebook has been experimenting a lot with videos lately: they introduced and now refining their Live-streaming capabilities, introduced Videos in Instagram feed and testing newer monetization methods which include insertion of ads in between the videos, and allowing publishers to monetize the videos on a revenue-sharing model.