Facebook Hits Play on Watch, Its Video Tab
August 09 2017 - 9:20PM
Dow Jones News
By Deepa Seetharaman
Facebook Inc. is taking a serious shot at YouTube.
The tech behemoth, which isn't shy about replicating rivals'
features, is redesigning its video tab to bring Facebook's original
programming front-and-center. The revamped video tab, now dubbed
Watch, includes sections that showcase videos a user's friends are
watching or those that spark a lot of debate on the platform,
Facebook said Wednesday.
The new tab will roll out over the next several weeks.
Fidji Simo, who leads Facebook's video efforts, said that unlike
YouTube, Facebook wants its shows to generate conversation,
preferably on Facebook itself. Early on, new shows will have to
apply, but eventually Facebook wants to make it possible for any
creator to simply upload a show on Facebook, as they do on
YouTube.
"The thing that we're doing that's similar is really creating a
platform where everybody can come in, but the thing that's very
different is all the content that we want to create is really
around bringing communities together," Ms. Simo said. "The angle
that we're taking is really finding shows that are about bringing
fans together."
The initiative is part of Facebook's broader push to invest more
in video, which Chief Executive Mark Zuckerberg predicts will be
the largest driver of Facebook's business over the next two to
three years. Video ads will also help offset what Facebook expects
will be slowing growth in news feed ad, its primary source of
revenue.
Last year, Facebook paid publishers to produce live videos to
jump-start production of live streams among its users. Today, one
in five videos posted on Facebook are live.
Ms. Simo said a small portion of Facebook's new original shows
are paid for by the company, while the rest will receive a portion
of ad revenue. Facebook's goal is to create an ecosystem of video
creators who are entirely sustained by revenue from ads shown in
the middle of their videos, also known as ad breaks or mid-roll
ads, she added.
This strategy echoes that of YouTube, a division of Alphabet
Inc., which in 2011 spent as much as $100 million buying content as
part of the service's attempt to compete with cable television.
While YouTube's shows weren't particularly popular, they helped
build a broader infrastructure to support creators, many of whom
rely mainly on YouTube for revenue. Earlier this year, YouTube
reached a major milestone when it reported that its viewers
world-wide were watching more than 1 billion hours of videos a
day.
Facebook declined to say how much they are spending on original
content.
Each original show will get a page within the video tab that
links to a Facebook group where viewers can chat. Unlike Netflix or
Amazon.com Inc., Facebook plans to roll out an episode every week
rather than release all the episodes at once for
binge-watching.
Facebook executives spent the first half of the year discussing
its video tab plans with creators and Hollywood agents. People
familiar with the matter previously said Facebook was soliciting
pitches for shows in six main categories: sports, science, pop
culture, lifestyle, gaming and teens. Facebook didn't want to pay
for a news show, the people said.
Wednesday, Ms. Simo said Facebook wanted a broad range of
content. The company's original programming includes a children's
cooking show and a series about science topics.
ATTN, a publisher that often tackles politically charged topics
like climate change, decided to create lighter fare for Facebook's
tab, partly based on Facebook's specifications, said ATTN
co-founder Jarrett Moreno. ATTN's two shows for Facebook include a
healthy living show hosted by actress Jessica Alba that spans 10
episodes.
Mr. Moreno said it would get a portion of ad revenue and that
Facebook is guaranteeing a certain amount revenue for every
episode.
Write to Deepa Seetharaman at Deepa.Seetharaman@wsj.com
(END) Dow Jones Newswires
August 09, 2017 21:05 ET (01:05 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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