Troy Posted June 22, 2016 Report Share Posted June 22, 2016 Facebook Inc. has inked contracts with nearly 140 media companies and celebrities to create videos for its nascent live-streaming service, as the social network positions itself to cash in on a lucrative advertising market it has yet to tap—and keep its 1.65 billion monthly users engaged. The company has agreed to make payments to video creators totaling more than $50 million, according to a document reviewed by The Wall Street Journal. Its partners include established media outfits like CNN and the New York Times; digital publishers like Vox Media, Tastemade, Mashable and the Huffington Post; and celebrities including Kevin Hart, Gordon Ramsay, Deepak Chopra and NFL quarterback Russell Wilson. The value of individual contracts varies widely, with 17 worth more than $1 million, according to the document. The highest-paid publisher is BuzzFeed, slated to receive $3.05 million for broadcasting live between March 2016 and March 2017. Just behind BuzzFeed is the New York Times, which is to receive $3.03 million for a 12-month deal. CNN is third, with a $2.5 million contract. [Kevin Hart $600K] (Read the complete story at The Wall Street Journal, 22 June 2016) Now the Wall Street Journal did mention whether this would be good, bad, or indifferent for any of the parties concerned. Judging by the popularity of the videos Facebook is already streaming I have not hope this will benefit readers, as Facebook optimizes this content for revenue generation. It is already telling that a Buzzfeed commands for for their content the venerable New York Times. Will this put more pressure on the NTY too become more like Buzzfeed so that they can earn more from Facebook? How will the effect resource allocation at the NY Times. Wil they can a few more journalist so they can hire a few kids to make stupid videos like the one described below: The potential power of Facebook’s platform has been evident in early experiments. In April, two BuzzFeed employees streamed a Facebook Live video showing them placing rubber bands around a watermelon until it exploded. It was Facebook’s most-watched live video, until it was beaten out by Facebook user Candace Payne, who in May filmed herself in her car, laughing uproariously over a noise-making Chewbacca mask. {sigh} 1 Link to comment Share on other sites More sharing options...
CDBurns Posted June 23, 2016 Report Share Posted June 23, 2016 This continues to diminish the use of Facebook for small biz. While I saw a slight spike in sales from using Facebook recently, the creation of content by larger platforms will always trump the smaller users who are looking to find a way to monetize the people who they have connected with on Facebook. Facebook is still in the process of figuring out how to beat YouTube at it's game, but they are a long way from doing so. The process of paying big named content creators, or stupid video creators is an attempt at making the regular user feel that they can also generate the type of viewership that those more popular videos generate. The failure is in the fact that to gain watchers/viewers you still have to boost post and the user has to pay for those eyes which is not the case with YouTube. It's compounded by the fact that at least with YouTube the potential to earn is inherent. All of this leads to more of the same for small websites... how do you get people to your content on a consistent basis. Facebook is just going to continue to maximize and benefit as it has been doing. 1 Link to comment Share on other sites More sharing options...
Troy Posted June 23, 2016 Author Report Share Posted June 23, 2016 Yeah Facebook is executing brilliantly. Paying content producers had to come eventually, still this is a relatively small payment to The New York Times. If I were running the paper I would not publish on Facebook for a mere 3 million. Still, small business are left holding the bag, having to pay to reach the fans they have attracted on Facebook. In contrast, Youtube still pays content producers. I get a check from Google, for my Youtube videos, every month and have for years. It is not a big check, but it is something. Everytime I log onto Facebook they have their hand out asking me to pay to promote a post that they have identified is interesting to readers. 1 Link to comment Share on other sites More sharing options...
Guest Gumbo for the Soul Posted June 25, 2016 Report Share Posted June 25, 2016 This is a really good post and spot on perspective via the comments. Thanks so much. This is why I only use Facebook to post and keep it moving. I have never been able to fully monetize and take advantage of them as a small business, having built connections, due to the costly roadblocks set within the parameters of promoting -to line their pockets. I'm so over Facebook. I thought this might be another opening, but after reading your comments its another reason to look above and beyond for better avenues for business growth. Blessings, ~Beverly 2 Link to comment Share on other sites More sharing options...
Troy Posted June 25, 2016 Author Report Share Posted June 25, 2016 Beverly that has been my strategy with Facebook for sometime now. This article may give your more insight into why I have taken this approach. 1 Link to comment Share on other sites More sharing options...
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