According to the Financial Times, Facebook users might find video advertisements in their newsfeeds as soon as July, with Facebook hoping to grab some advertising revenue away from TV and open up a new revenue stream to appease shareholders. Facebook’s client council include brands like Coca-Cola, Ford, and Unilever, all of whom expect to take part in trials. The worry, however, is that users will find the experience so disruptive that they will move on to other websites and social networks. Indeed, just last week it was reported that Facebook’s user numbers are on the decline despite Facebook Home and other attempts to keep users engaged. Facebook will present the videos silently, with the user choosing whether or not to activate the sound. At what price will this video advertising come? That remains to be seen, but raises another question: how long until Facebook offers an ad-free newsfeed, for a price?
Tag: Financial Times
Youtube To Launch Paid-Subscription Channels
Youtube has, for some time now, been expanding its services into multiple entertainment platforms, but according to a report from the FInancial Times it is now on the verge of revealings subscription services for some of its special video channels. According to the Financial Times report, it will include up to 50 different channels, with subscription prices apparently starting at “as little as $1.99 a month.” For what it’s worth, Google has followed up saying that it’s working on investigating “a subscription platform that could bring even more great content to YouTube.” Which basically seems like it amounts to a yes; a subscription based YouTube could throw a massive wrench into the television and online streaming service industry that exists today. For consumers and advertisers alike, the announcement could mean new opportunities and models, so this announcement is worth taking into consideration.
Chat Apps Surpass SMS
Messaging apps are proving popular across the globe; indeed, WhatsApp CEO Jan Koum recently claimed that his service is bigger than Twitter. And a new study by Informa, on behalf of the Financial Times, concludes that chat apps have overtaken traditional SMS in terms of message volume. By the end of 2012, there were more messages sent via iMessage, BBM, WhatsApp, and Kik when compared with regular texting. Because SMS has been a traditional resource for wireless carriers, this trend has been worrying for these companies. By the same token, however, SMS is still far ahead in overall user count, and Informa expects providers to pull in $120 billion from texting plans this year. Ultimately though, non-text-message output is expected to reach 41 billion per day in 2013, which is double the number of forecasted texts; WhatsApp already reportedly processes 18 billion messages each day alone. Ultimately though, if carriers want to monetize messaging like texts, it remains to be seen if users will stick around.
