Given the booming business for video content, Facebook Inc (NASDAQ:FB) is exploring the possibility of introducing scripted shows, game shows and sports broadcasts on its social network. The initiative, which is being spearheaded by Ricky Van Veen, Facebook’s head of global creative strategy is in response to the ranging game competition. Earlier in the year, the social giant started rolling out the Video tab, a place set aside for video on Facebook.
Veen, who joined Facebook earlier this year from CollegeHumor outlines, “Our goal is to kickstart an ecosystem of partner content for the tab, so we’re exploring funding some seed video content, including original and licensed scripted, unscripted, and sports content, that takes advantage of mobile and the social interaction unique to Facebook.
Is Facebook is seeking to chart a better path towards monetization?
The market competition is stiff given the Prime Video-style outcome from Netflix, Inc. (NASDAQ:NFLX) or Amazon.com, Inc. (NASDAQ:AMZN). It is perhaps for this reason that Facebook has continued to sign deals with media organizations that will use its Live video broadcasting platform in exchange for revenue. From the look of things, Facebook seems inclined to use anything for as long as it can get a spark from third-parties. However, the monetization incentive that will come along with Facebook’s move remains unclear given that Facebook account is free and again the service has such a stingy policy towards ads.
On the other hand, Facebook has over a billion global active daily users. Thus, even as it seeks to bring more specialized entertainment to the Video tab it somewhat uncertain who the target demographic will be. But despite all the unanswered questions Veen maintains that their aim is to demonstrate to people what more is possible on the platform other than just the basics.
There are chances that Facebook could lure some big names to its platform
Facebook video tab boasts Live video, which is generated by users and Pages. Given the media partnerships that the social media is quickly obtaining, it is likely that it will expand to greater prominence bringing big names on board.
Apparently, the company has not drawn up a budget for its video venture. Instead, it is taking more of an experimental approach by considering a range of formats. Nonetheless, it is just a matter of time before everything unfolds. Meanwhile, Facebook’s stock closed at $120.21 a fall of $0.10 or 0.08%
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