Why Facebook Is Betting Big on Original Content
Facebook to spend over $1 billion on original content
Facebook (FB) is going big on original content. The social media giant is aiming to spend as much as $1 billion to further its entry into original content programming. The company is looking to diversify its revenues, as revenue growth has been slowing down. As the graph below suggests, while Facebook’s ad revenue growth is positive, it is slowing.
The company is entering an already crowded space with the likes of Amazon (AMZN) and Netflix (NFLX) already spending the big bucks to get a bigger share of the pie. Last month, Apple (AAPL) said that it will invest the same amount on original content over the next year.
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Facebook bids big for IPL streaming rights last week
In a bid to further its video push, the company bid as much as $600 million for the rights to stream the high-profile IPL (Indian Premier Tournament) cricket tournament last week, but lost out to Star India.
The company unveiled “Watch” for its US users last week. Watch is the new tab on the app where users can get access to original shows from the social media giant’s partners. Facebook’s partners include the MLB, Freethink Media, and the Discovery Channel (DISCB). Facebook is trying to make more money from its impressive two billion monthly active users.