While it started as a social platform, Facebook doesn’t like limits and boundaries. The company loves to experiment with both software and hardware as long as they are part of the new generation of technology. These experiments led to breakthroughs in artificial intelligence, augmented reality, and Oculus Rift as a wearable headset to experience virtual reality. However, as of recently Facebook is interested in another project about cord-cutting TV shows. Therefore, the company is willing to open a budget of $1 billion to create original TV content.
Facebook Will Focus in 2018 on Populating Video Tab Watch with Original TV Content
Recent reports indicate that Facebook has big plans for next year. The company intends to propel its recently revamped video tab called Watch ahead of other rivals. Facebook has already rolled the service in a few areas to test its capacities.
So far, the tab runs original Facebook shows such as Nas Daily. It also features productions from third-parties like Gabby Bernstein, Kitchen Little, but also one live game of Major League Baseball each week.
However, Facebook doesn’t plan to keep the financial tap open for this project indefinitely. On the contrary, its main goal is to reach a level where creators won’t ask for payments in exchange for their original TV content.
Creators Will Eventually Post Original Videos just for a 45% Share of Their Ad Revenue
Instead, they will be able to cover their expenses after they publish the videos by benefiting a 45% share of their ad revenue. There’s already a monetization software called Ad Break that can turn video content into a source of income.
By comparison, Facebook’s rivals in this domain are spending a lot more than the social media platform. Netflix created $6 billion-worth of content this year while Amazon allocated $4.5 billion for this niche alone in 2017. Therefore, Facebook is not making as big an appearance as people think in this cord-cutting industry.
Eventually, Facebook will blend the social network better with its TV content. The company wants users to interact with this service and turn it into a social experience. So far, users can comment on Watch’s shows and even discuss them in dedicated Facebook Groups.
Image source: 1