Step 1) Creating a video-only post. Step 2) Invest money on live together with non live programming. Step 3) Earn money by placing ads in respective programs.
Facebook is trying to become one spot for video enthusiast, tantamount to Netflix, YouTube, Hulu and Amazon. That’s why Facebook is concentrating more on video only feeds and actually paying other publishers such as CNN, BuzzFeed and The New York Times to create live broadcasts. And that’s the reason why company is planning to spend good amount of money to accumulate non-live shows in their vault.
Facebook has already started the process by taking to media companies in regards to purchasing original shows and also licensed programs which will be apportioned on to the social media network, a spokesperson form Facebook confirmed this after the news broke on Wednesday.
Head of the global creative strategy- Facebook, Ricky Van Veen, encapsulated this social media network’s strategy statement in an email.
“Earlier this year, we started rolling out the Video tab, a dedicated place for video on Facebook. Our goal is to kick start 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. Our goal is to show people what is possible on the platform and learn as we continue to work with video partners around the world,” said Facebook’s head of global creative strategy, Ricky Van Veen, in an emailed statement.
When requested, the spokesperson from Facebook declined to give away any details about the different types of media companies and producers with whom Facebook might sign up deals in future or what genre of programs Facebook is focusing on. But as per the statement given by Van Veen, it looks like almost everything is on desk, as long as viewers watch it on mobile phones and want to do more than just simply watch.
The Facebook’s spokesperson further declined to speak about how Facebook intends to make its money back. But on the other hand, another Facebook executive might have answered that question already.
Earlier this year if you noticed, Facebook initiated inserting medium length ads within few Facebook Live Streams as an experiment to see how the company can earn money from this program. But here’s the catch, these medium length ads, or the “ad breaks” as Facebook likes to call them, could easily be placed within a non-live program, exactly like the ones Facebook planning to acquire, kicking off some time next year, they eventually will.
“Next year, we are going to initiate planning on how this kind of monetization can potentially be implemented to regular videos too,” said the Facebook’s Vise President of partnerships, Dan Rose, when interviewed by Poynter in September.
Whether or not, Facebook would insert those planned ad breaks in between the programs it pays for is an aperture question. Indeed, it’s a likelihood, but also there’s a great potential and sustainable structure how Facebook will actually generate their revenue.
Facebook may alternatively utilize the programs they buy to attract audience who hadn’t contemplated Facebook in addiction to Netflix and of course Facebook, and YouTube might utilize the ad breakers to attract programs from different media companies and producers, with Facebook obviously giving them a piece of the ad revenue so they can earn money without that money coming out of Facebook’s repository. That would probably explain as to why, Van Veen mentioned the programming that Facebook is presently focusing to pay for as “seed” programming.