.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.
Wi-Fi and other connective technologies will shackle the growth of mobile data revenues in the U.S. for at least the next few years, Parks Associates predicted. The market research firm said worldw...
According to Parks Associates, an increasing number of US broadband households cancelled at least one OTT subscription in the early part of the year, with a significant number also utilising the free...
The adoption of over-the-top (OTT) video services among US broadband households has increased by 12% since the third quarter of 2014, according to Parks Associates. The research firm said that both...
“Importantly, all of these services have increased their subscriber base over the past year. The top five OTT services have stayed consistent, primarily through maintaining or growing the massive user...
