Mark Zuckerberg Is Investing In Video; Sees It As The Next Megatrend
Mark Zuckerberg is steering Facebook onto a new path. The social media platform will be investing a large amount of money on the network's video strategy.
Zuckerberg answered several questions on the new trend in yesterday's Q4 earnings call. The CEO sees video as one of the incoming "mega trends" for the ever-evolving landscape of social media.
Facebook will both pay video makers through ad revenue sharing. Doing some will enable them to get their content into the network's News Feed and video tab.
Despite the latest move, the network won't necessarily be diving into funding a ton of videos. This includes TV shows, movies and other related material. Zuckerberg stated that users will be experimenting with "longer forms of video."
The CEO also noted that quick and short video clips are "the primary focus for the foreseeable future." Basically, Facebook is more interested in following YouTube's steps. The network is steering away from investing in long-form shows or films like Netflix as of now.
In other news, Facebook is earning more money than investors expected. According to Mark May, the network growth expense guidance came higher than expected. May, is an internet analyst from Citi.
The social media platform's ad revenue grew to about 53 percent ,according to CNBC. Around 84 percent of the ad revenue that came from mobile users helped boost Facebook's reach, according to Zuckerberg. The network is now also deciding to use its earnings to invest in video and data centers to add to the platform.
Yesterday's conference call with investors bared the social media platform's plans. Facebook executives stated that the company intends to share revenue with video creators, emphasizing the delivery of episodic and high-quality content. They also reiterated plans to build data centers around the country. Stay tuned for updates.