Facebook clarifies its biggest feature in video to date: It wants to sell consumer subscriptions on cable TV networks like HBO, and hopes they will watch these networks on their own apps.
The social network speaks to pay TV channels like HBO, Showtime and Starz about a proposal to sell the companies streaming TV services on Facebook. Consumers subscribing to the channels can look at Facebook's own features – mostly via Facebook's "Watch" hub, but can also watch them on other platforms and devices like Roku TV.
It's a model TV guys are familiar with. With: Amazon has done something similar for a few years, and Apple wants to do the same next year.
Industry sources say Facebook's media team has discussed agreements with HBO and others for several months and wants to launch product in the first half of 201
If that happens, it would be both a logical course for Facebook, given its great ambitions to become a video field and a big departure for the company: Although Facebook has dabbled with e-commerce lately, it has not been done something big for selling something directly to the consumers.
Facebook has spent several years convincing media companies to create content for its 2.3 billion users, w with limited results. But it has also signaled that it is willing to spend money to buy premium programming. In 2017, $ 600 million is offered in an unsuccessful attempt to stream Indian cricket matches; last year it began to stream a handful of old television shows, including "Buffy the Vampire Slayer", through an agreement with 21st Century Fox.
Industry leaders believe television programmers will expect Facebook to pay down payment for multi-year deals, which Facebook would pick up by pocketing some of the channel's subscription fee. Platforms like Apple and Amazon usually hold 15 percent to 30 percent of any subscription revenues they generate.
Selling content or something else to users would be a significant change for Facebook, which has always kept its core business free and relies on advertising for almost all of its revenue. But sources say one of the reasons why the company is interested in selling pay-TV subscriptions is that the networks already spend a lot of money advertising their services on Facebook. Logic: Instead of sending consumers who click on these ads outside of Facebook, the company can capture some of the revenue itself.