- Facebook is aiming to enter the video streaming market to compete with the likes of Netflix and Amazon with testing of paid subscriptions for its on-demand video streaming platform Facebook Watch.
- Facebook will keep different price ranges depending on the content, for example, it charges $4.99 for CollegeHumor’s DropOut and $6.99 for ITV’s BritBox.
Facebook is aiming to enter the video streaming market to compete with the likes of Netflix and Amazon with testing of paid subscriptions for its on-demand video streaming platform Facebook Watch.
As a part of the trial period, the company will be airing content from BBC, ITV and CollegeHumor.
Paid subscribers will be an addition to the revenue stream for the social network, although it is unlikely to come close to the money platform makes from mobile advertising. The company announced a 28 percent hike in the revenues to $16.9 billion for Q2 2019.
The initial testing of the feature will be available in the US.
The Company said in a statement, “We’re testing subscriptions on Facebook, starting with limited partners. We’re excited to bring more of people’s favorite shows and videos to Facebook, where subscribers can enjoy the content together with other fans. We’ll be listening to feedback from our community,”
Source- Fb Newsroom
Facebook will keep different price ranges depending on the content, for example, it charges $4.99 for CollegeHumor’s DropOut and $6.99 for ITV’s BritBox.
Subscribers will have access to original content including comedies, dramas and documentaries, virtual viewing parties and chats with other users.
As the mobile ad market is getting more cluttered with competitors such as Amazon, subscription revenues could be a successful addition to bolster potential losses in ad sales.
Facebook will face huge competition from the likes of Netflix, Apple TV, HBO Max, and Amazon Prime Video.
Facebook will charge it’s cut and process any subscription payments for its partners.
Facebook is driving social engagement by driving strong communities of video fans. The company was losing a lot of audience as the users flock to other platforms including its own Instagram.
This strategy is just a baby step for now and is similar to the SVOD-aggregation by Amazon. In the U.S., Amazon’s Prime Video channels have more than 150 services including HBO, Showtime, Straz and CBS with subscriptions available to Prime Members.
It is quite indicative that Facebook is moving towards a paid model of the video but the company said that they will be exploring video subscriptions to support a new business model that could help bring more amazing content to Facebook. The watch will be supported by a range of business models, like Ad Breaks and the vast majority of the content in Watch is free and ad-supported.
