Providing market intelligence for more than 35 years

In The News

Facebook's latest ambition: becoming a hub for TV-style content

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.

Previously In The News

Netflix saw subscribers drop post-lockdown. But Disney+ might not face the same fate

Like all streaming services, Disney+ saw strong growth during the pandemic but competitor Netflix reported losing subscribers last quarter. But Disney+ is cheaper than Netflix – an increasingly import...

Sharing your TV streaming passwords? Cable companies won’t stop you—yet

Neither of these methods work particularly well, at least for the kind of casual sharing that’s pervasive among friends and family members. A survey earlier this year by Parks Associates found that 18...

Amazon rumors show ad-supported video picking up steam

Roku is still ahead of Amazon Fire TV in the U.S. streaming player market, according to May 2018 figures from Parks Associates. And Roku is taking advantage of that through the launch of its own ad-su...

On Hunt for Content, AT&T Closes Deal for Chernin’s Otter Media

With the purchase, Otter Media ranks as one of the most valuable media upstarts of the last decade, said Brett Sappington, senior director of research at Parks Associates, a firm that focuses on emerg...