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Facebook's $16 billion IPO this week was watched with interest by just about everyone, and was eyed even more carefully as shares failed to perform on their first day of trading, opening at $43 and then falling back to under $39. But failing to attain the $80+ uptick that some expected on the first day doesn't change the fact that the company is now public, and will be a much more high-profile player in the industries in which it chooses to get involved.
One of those industries is sure to be online video, as the Internet giant looks to parlay its transactional nature into top-line revenue.
Streaming video on demand (VOD) arrangements are already in play. At the Cannes Film Festival this week, U.K. independent film distributor Revolver Entertainment launched a new Facebook movie rental service called FindWatchShare, which allows users to search, share and rent/watch movies directly from the Facebook platform. Payments are made through Facebook Credits and users will receive discounts on titles if they share their activity with friends.
Facebook has an advantage in its status as a near-ubiquitous path to distribution, clocking in now at 901 million active users, or, three times the size of the United States' population. It has its own PayPal-like trusted payment method: Facebook Credits. And, as everyone else (Amazon, Netflix, etc.) rushes to provide "social TV," i.e. the ability to post comments on a video, interact with friends and update their status, Facebook, of course, already has that built in.
That deal is only the latest. It has quietly ramped up its video presence over the last year. For instance, it partnered with Major League Baseball to broadcast spring training games--a notable experiment considering the high value of live sports content and the scramble for exclusive premium access to it via among the more traditional video operators.
An even more notable plan is Blockbuster's intent to offer 8,000-10,000 films via its Facebook page through a new video-on-demand service that will integrate social tools as well as a click-for-information tool that enables pop-up windows with director commentary and the like.
Major studios have gotten social as well. Facebook was the platform of choice for the digital release of Batman: Dark Knight. The Warner Bros. studio made the movie available for a 48-hour rental for 30 Facebook credits, or $3. Miramax offers the Miramax eXperience movie rental service; and Universal and Paramount have both tested the Facebook VOD waters themselves.
Meanwhile the BBC over the summer made digitally remastered Doctor Who episodes available to rent via the official Doctor Who Facebook page. The offerings include ‘The Greatest Show in the Galaxy,’ a Facebook exclusive that was never released on DVD.
A host of...Continue reading Facebook VOD rentals top new revenue opportunities
