Facebook Takes on Netflix, But Can It Really Eat Into the Latter’s Market?

Must Read

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many...

Will Google’s Move To Delete 2,500 YouTube Channels Add Fuel To The Fire With China?

The US-China trade war has started rearing its ugly head. Both sides are now turning to extreme...

Cloud Computing is Redefining the Education Industry!

Today, the benefits of cloud computing are being recognized in educational industries around the world. Most of...

As per a recent report by Wall Street Journal, Facebook Inc. (NASDAQ:FB) is eagerly looking into creating its own exclusive video content for its video app, and could soon rival Netflix.

The WSJ report goes on to inform us that in addition to the original content, the app will be able to stream content from Apple TV as well as from other over-the-top content providers. Facebook is also considering several genres ranging from sports to science, including pop culture, lifestyle, gaming, and teens.

There is no doubt that Facebook has been showing a keen interest in foraying into video, and more particularly, original video content. The social network giant has been working on a video-centric app since last year and has also been looking for programmes to feature on the app.


Given that Facebook serves as a great platform for unique mobile and social interactions, we can safely say that Facebook is taking advantage of this and is keenly exploring original as well as licensed content. The move to creating original content for its video app comes off the success of its Facebook Live feature, which allows its users to engage in real-time conversations by broadcasting live video. Further, just about a month back, Facebook hired former MTV executive Mina Lefevre as the new head of development for the company.

Facebook Exclusive Content: Taking on Netflix And Amazon?

Netflix has been a specialist in streaming media and video-on-demand online. Further, Netflix expanded into film and television production, as well as online distribution in the year 2013. In 2016, the year in which Netflix went global, it had managed to acquire about 19 million new subscribers. While a major player in just the United States, by the end of 2016, Netflix’s international subscribers accounted for about 47% of the company’s subscriber base. It is anticipated that the international subscriber base will overtake the domestic subscriber base this year.

Infographic: Netflix Continues to Build Its Global Audience | Statista

Despite Netflix’s unwavering dominance in the online streaming market so far, Amazon Prime has been emerging as the top contender. Also a big investor in original content, Amazon Prime is slowly and steadily emerging as the customer’s choice for online streaming.

Amazon Prime’s rise has been credited to its investment in original video content – a model that was in fact pioneered by Netflix themselves. Netflix’s hit original series like House of Cards or Orange is the New Black is seeing competition from Amazon’s hit originals such as Transparent and Man in the Jungle.

Internet Giants Are Betting Big on Original Content

According to data from Symphony Advanced Media, Netflix’s original shows accounted for nine of the top ten most streamed originals in the year 2016. Not only does this tell us that Netflix still holds the competitive advantage in terms of the quality of its original video content, but also tells us that original video content is a very lucrative market in the online media space at the moment. In the US market alone, annual revenues generated from subscriber-based video streaming (sVoD) are expected to grow by over $6 billion between 2014 and 2020.


The projection from the US market clearly portrays a promising business scenario at worldwide level. With the advent of improved internet infrastructure and high-speed mobile internet connectivity, the consumption of video content on the go are poised to grow at an unprecedented rate globally,

Image result for original streaming shows market growth

Facebook’s venturing into original online stream-able content should not come off as a surprise if you consider the trend that the market itself is taking. However, whether or not Facebook’s venturing into the TV space will prove profitable for the social media company is a question that needs answering.

Should Netflix Worry About Facebook TV?

Facebook seems to be drawing from several of its competitors’ models with regard to video content. While it seems to copy YouTube’s short-form video concept, this focus on short-form videos will distance Facebook from the likes of Netflix, HBO, and cable TV. But however, Facebook is still eyeing the big future that it has for “premium” video on Facebook.

Netflix may right now see just Amazon, Hulu, and HBO as its immediate competitors; but looking at the growth trajectories of online video content and the growth of more and more original video content, it seems that Netflix is looking beyond its more traditional competition, and are looking at other potential platforms such as Facebook, YouTube and Snapchat, that could compete with its service.

Netflix may, in fact, have to worry about Facebook’s aggressive foray into the TV market. Not only has Facebook been making strides in video content engagement with its users, but has also been able to drive revenue growth from advertising through video. With 1.86 billion monthly active users, Facebook already has an edge over any other internet company interested in showcasing exclusive video content. Video content is the future of Internet, engagement on video content on Facebook is up by 25%.

Facebook’s slow but very steady foray into TV from internet video is clearly going to rub shoulders with the likes of Netflix and Amazon Prime. With the help of its dedicated video app, a highly personalised video feed for its consumers, and of course, original content, Facebook may have something on its plate. Mix it with humongous data of users Facebook is tracking every second, we can clearly see and say Facebook is going to make Netflix and Amazon run for their money!


Please enter your comment!
Please enter your name here

Latest News

PAN-Aadhaar link: 32.71 Crore Indians Can Now Reap the Benefits

The agenda to link every citizen's Aadhaar card with their PAN card has been on the Indian...

When A City Had To Pay Ransom To Cyber Criminals!

While the rapid advancement in technology surely did gift us with newer and more powerful devices, be it smartphones or iPads, it...

Can Twitter’s New Feature Really Make You Feel Safe?

Twitter has been on what seems like a campaign to make the site a place for more meaningful conversations among users. Ever...

TikTok Acquisition: Not A Cake Walk for Microsoft

After President Trump announced an order banning US companies' transactions with Chinese businesses, which is set to come into effect 45 days...

Can ‘Made In India’ Twitter Alternative Replicate Twitter’s Success?

The popular microblogging platform Twitter has a new Indian clone and it is all set to capture the non-English users in the...

TikTok Stars Are Fighting an Uphill Battle

2020 has proven to be a difficult year for many Chinese-origin apps, including the wildly popular short video app, TikTok. Many Chinese...

In-Depth: Dprime

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

More Articles Like This