BUZ INVESTORS Facebook Inc Like a lot of companies in Silicon Valley, Facebook Inc (NASDAQ:FB) is throwing money at Hollywood development studios in order to create original content. These Facebook TV shows will be scripted and delivered in episodes, much like those on traditional TV.
This puts Facebook in direct competition for TV advertising dollars…
That is the whole game plan for Facebook. Get users, keep users engaged, sell them to advertisers. And in order to keep Facebook stock growing, Facebook needs more advertisers to spend more money.
It isn’t like Netflix, Inc. (NASDAQ:NFLX), which operates on subscription revenues. The $9.99 fee per month is what made NFLX stock a phenomenon.
In a word, no.
With Netflix, you pay $10.00 per month for a sense of freedom. There are no advertisements, no obstacles, nothing to prevent you from watching what you want. Facebook is coming from a completely different angle.
Facebook is doing advertiser-sponsored television, which means it’s competing directly with traditional cable.
According to The Wall Street Journal, Facebook is willing to spend $3.0 million per episode for quality programming. This puts it on equal footing with established studios like CBS, but I suppose that shouldn’t be all that surprising. (Source: “Facebook Is Going Hollywood, Seeking Scripted TV Programming,” The Wall Street Journal, June 25, 2017.)
Facebook signed deals for 30-minute episodes, with ads. Although some of them are sit-coms, we should also expect short-form content from ATTN, Vox Media, and BuzzFeed.
Also, don’t expect Facebook to release the next Game of Thrones, because it’s target age group is between 13 and 34. Within that band, the core demographic is 17 to 30. So nudity, coarse language, and politics will be kept to a minimum.
Some reports say that Facebook will also dip into the reality-TV well, drawing from popular shows like The Bachelor and The Bachelorette. (What a depressing thought.)Click here for reuse options!