.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.
“Pay-TV providers want to retain subscribers, so they want to make sure that you stay inside their ecosystem,” says Brett Sappington, a media analyst at Parks Associates. “If you don’t have a reason t...
“Across the nation, all sorts of internet service providers have gained two new competitors,” says Kristen Hanich, the research director for Parks Associates, referring to T-Mobile and Verizon. “They...
New research out this week from Parks Associates found that Chromecast makes up just 11% of all streaming players installed in the United States, down from 21% three years ago. Meanwhile, Roku’s U.S....
Password sharing cost streaming companies about $9.1 billion last year, according to data from the research firm Parks Associates. From the article "The streaming wars are flooding us with TV".
