Facebook Watch: Broadcasters better gear up to the new competition
Fear of Facebook has been spreading at the International Broadcasting Convention (IBC) in Amsterdam after the social network refined plans how to expand reach and revenues.
This is an edited version of an article that was first published on dw.com in English and German
A powerful storm in the Netherlands already had many IBC participants rattled, and it’s not likely that they felt much better after listening to the opening keynote address on September 14, 2017.
Facebook product director Daniel Danker, a seasoned media pro, took to the podium in Amsterdam with news that could only inspire fear among the many executives of traditional broadcasters in the hall. Ever since Facebook launched Watch, its video platform for shows and live content, the market has been tightening for established players once again. Traditional broadcasters are already battling increased competition from YouTube, Netflix and Amazon. And it’s an open secret that Apple is preparing to launch its own offering, too.
(Video) Content is King
The potential threat is clear to television producers: over 2 billion people are connected on Facebook, more than a billion of which use the social network on a daily basis and check one of the countless Facebook groups at least once a month.
Video is by far the most successful offering on Facebook. “Forty percent of all videos watched on Facebook come from sharing,” said Danker. They are especially popular in Facebook groups: “Live videos are instantaneous, authentic and credible. That’s what makes them so successful.”
The Power of Sharing
Facebook Watch is completely personalized. Facebook posts recommendations for shows and live broadcasts based on usage patterns and personal preferences but also on recommendations from friends, family members or fellow group members. “What makes watching Facebook videos special is your friends,” said Daniel Danker at the IBC. “You discover videos through your friends and you often find yourself discussing videos with them. Video has this amazing power to bring people together and build communities.”
Accordingly, Facebook Watch wants to motivate as many friends as possible, wherever they may be, to watch videos together. Be it smartphone, tablet, PC or Smart TV, Facebook is set to replace linear television as the nation’s campfire. Many a media maker is getting chills just thinking about it.
Fighting for survival
For traditional broadcasters, more than just the loss of range is at stake. The Facebook advance could threaten the survival of many television stations — that is at least what many at IBC fear. Facebook is already one of the unmatched leaders competing for advertising funds but the new video offensive may even poach some of the advertising budgets normally reserved for traditional television.
Facebook is extremely interesting for advertisers because, unlike TV channels, it offers comprehensive user profiles. The data can be used to develop — and add advertising to — formats that are tailored to different target groups. This is exactly the reason why Facebook is trying to alleviate concerns expressed by TV producers: it is also attractive for traditional media to develop new formats for Facebook Watch. “Facebook Watch enables you to reach new, loyal target groups with whom you can get in touch in a completely different way,” said Danker.
New Players take the Stage
All of this means additional costs, which, according to Facebook, can be refinanced by advertising or via branded content.
However, the current video selection in the USA shows how difficult it will be for media companies to be successful on Facebook Watch, despite these monetization options. Very few established broadcasters have joined in so far, while others are taking the stage. Hala Madrid for instance— a Facebook Watch show on the Spanish soccer team Real Madrid. Real has 100 million Facebook fans, making it a social media giant with no need to supply traditional media with material — and even less so with free content. Instead, Real is increasingly providing its own community with exclusive content, and other soccer clubs are already following suit.
Broadcasters better gear up
Broadcasters better gear up for the new competition. The storm over the North Sea may have ebbed away, but at the IBC in Amsterdam, everyone knew that traditional television producers will continue to face a stiff breeze for a long time to come.
