.jpeg)
It’s a small price to pay for a company with more than $32 billion in cash and marketable securities — compared with about $1.2 billion for Netflix — to establish itself as a prime destination in the new age of TV, analysts say.
“Facebook’s business model has been built around driving users to access Facebook multiple times per day,” said Brett Sappington, director of research of consulting firm Parks Associates.
Nearly every time they come, users see ads — and each video ad can bring in up to 10 times the cash of the standard image-and-text variety.
“This move is more about how to keep users immersed in the Facebook experience and watching more ads,” Sappington said.
Many users will use multiple apps to watch videos, including YouTube and Snapchat, but Facebook doesn’t want to cede too much ground.
From the article "Facebook's latest ambition: becoming a hub for TV-style content" by David Pierson and Paresh Dave.
That 50 percent figure gets a lot of play: In April 2015, Parks Associates reported that 50 percent of U.S. broadband-enabled homes had an SVOD subscription. In March 2016, NPD Group reported that 52...
How attractive is 5G fixed wireless as a substitute product for existing fixed network internet access? Substantial, according to a new Parks Associates survey. According to Craig Leslie, Parks Ass...
Predicting what will come for Snap Inc. is a hotter industry topic than trading iPhone rumors. The company's biggest problem isn't the notoriously fickle nature of its target demographic or even the w...
Luring and keeping customers is becoming harder as the online streaming market gets more crowded and subscribers, freed from cable television's contract model, can cancel service with a click of the m...
