Facebook is said to be developing a video-centric app for television set-top boxes such as Apple Inc.’s Apple TV. This move of Facebook is for them to give customers a home for video content as well as a new vehicle for video advertising. To be successful, Facebook is asking publishers to create exclusive and TV-like shows for it.
Facebook To Create A Set-Top Box Video App
Facebook has been building the set-top box video app, which would be available for all TV boxes such as the Apple TV. The social network is also talking to media companies about licensing TV-quality programs to be available on the app as part of a long-term strategy to make their own video ad. Facebook began working on an app last summer after discussing the idea for years, according to The Verge.
Although Facebook is in the process of making the TV app, it’s not enough to just build an app, Facebook needs to fill it with more programming. Video on Facebook today consists of mostly short clips and experimental live streams, with both formats that will be difficult to sell advertisement revenue against. Also, advertising is the whole point of this move since Facebook told investors recently that it’s running out of places in the News Feed where it should insert new ads.
Facebook In Discussion With Media Companies
Facebook has been marketing its live-streaming abilities, testing a new video ad product and mixing more videos into Instagram, which is also owned byFacebook. To obtain success in the said app, Facebook is also discussing the move with media companies to license long-form, TV-quality shows. According to SmartWatch, set-top box app would be a natural way to distribute that premium content and make it accessible on all TV sets.
As reported, an app for set-top boxes of televisions would bring Facebook closer to live video as well as video advertisements. It is also possible for Facebook to sell ads against the shows on TV, which will be up to 10 minutes long and will also consist of both sports and scripted shows. Getting advertisers to buy more and more video ads is the main key to Facebook's continued revenue growth as such ads fetch higher rates from advertisers compared to the text or photo-based commercials.
Live video is also becoming a very highly competitive feature on all social platforms. With social network companies competing to stream major sports events, important and historical shows, and exclusive video components from high-profile situations such as the Oscar and Grammy awards, Miss Universe and World Cup shows. A network asks Facebook about specific shows but Facebook declined to comment about it.
In April last year, Facebook expanded its live video features and release the Facebook Live. This feature is a potential threat to broadcast television, giving it outstanding arrangement on its app and rolling out the feature to make it easier for users to search and comment live and in real time. From the perspective of media companies such as including Vox Media, Facebook’s investment in original content and programming could be a very good thing.