Will Facebook Inc (NASDAQ:FB) Benefit From Its Cord-Cutting ‘Watch’ Platform?

Facebook Inc (NASDAQ:FB)

In another move to spur more cord cutting by viewers, Facebook Inc (NASDAQ:FB) recently
announced that it will be launching its ‘Watch’ platform. It’s a new destination for
viewing original video content that is made exclusively by Facebook partners.

These partners will earn fifty-five percent of ad revenue from breaks in the videos
and Facebook will retain forty-five percent. There is a tab labeled “Watch” and
dozens of original shows have been set to start hitting the “air waves” to a test group
of US users on platforms like mobile, desktop, and even Facebook’s TV applications.

There’s been a search by Facebook Inc (NASDAQ:FB) to expand on its already successful advertising
platform. Reports already had indicated that the social media company could be
reaching critical mass – simply running out of space to show ads- and this move
could be the next step for growth. There will of course be a social aspect to this
platform. Viewers can have their features personalized and even recommended.
Additionally, Watch will have categories like “Most Talked About,” “What’s making
people laugh” and more. The “watchlist” feature allows for subscriptions to updates
on new episodes as well.

As stated by TechCrunch, “Facebook admits that “we’ve also funded some shows” as
examples, but notes that these are only a small percentage of all the available shows.
“We want any publisher/creator who is interested to be able to create a show in the
future,” a Facebook spokesperson tells me. “So there will be hundreds of shows at
launch, and we’ll hopefully scale to thousands.”

Business Insider was one of the first sources to “leak” details about a redesign but
estimates that the launch of original programming would begin at the end of August.
The reality, the shows are set to begin around August 11th.

Facebook CEO Mark Zuckerberg writes that “We believe it’s possible to rethink a lot
of experiences through the lens of building community — including watching video.
Watching a show doesn’t have to be passive . . . You’ll be able to chat and connect
with people during an episode, and join groups with people who like the same
shows afterwards to build community.”


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