Facebook is trying to enter the TV market now and might make a big push to do so soon. The social networking company is developing a video app for set-top boxes like the Apple TV, according to The Wall Street Journal.
Facebook in talks with major studios
According to the media outlet, Facebook has been working on such an app since last summer when it began a renewed push into video. But when exactly it will launch it is not clear as of now. Also this is in line with Facebook’s hiring of College Humor cofounder Ricky Van Veen to lead its “global creative strategy” and help develop original programming, notes Mashable.
Much of the last year at Facebook was dedicated to pushing live video, but reportedly, the company sees the new app as a place to telecast longer, higher-quality content. The report further said that the app will feature “TV-quality” shows licensed by the company.
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Currently, the social networking giant is trying to make deals with major studios to produce content for the yet-to-be released app, said the WSJ. The report added that the long-term goal of the app is to boost ad revenue. Facebook’s existing content comprises mostly of short videos, but longer and more “premium” video content commands much higher rates.
Focus on developing longer videos
Merely building an app will not help the company; it will also need to fill it with programming. Videos on Facebook consist mostly of short clips and experimental live streams, but none of those formats will help the company sell advertising revenue on it.
Overall, the whole project is about selling ads because recently, the company told investors that it is finding difficulty in looking for places in the News Feed to insert new ads. Therefore, the company is now approaching media companies to develop programming in exchange for a licensing fee.
This will help Facebook sell ads on the shows, which will be a maximum of 10 minutes long and will consist of both sports and scripted shows. A decline is being seen in the cable business, further offering opportunities to tech companies to move TV programming and advertising revenue to their platforms, notes The Verge.
Last week, the company updated its News Feed as well to place a greater emphasis on longer videos, notes Mashable. Mid-roll ads that come up after 90 seconds and do not play at the beginning like pre-roll ads are also being tested.