Facebook Watch - A Potential Disruptor to Satellite TV, Cable TV, YouTube and Netflix

Facebook Watch is a new streaming TV service.

It will offer original content and live broadcasts, all wrapped up in a social format with an opportunity for content creators to monetize - there's an ad revenue sharing offer. Plus anyone will be able to publish content. And it's Free to viewers. 

The social format, free access, availability to any content creator and revenue share are key innovative features. 

Facebook CEO Mark Zuckerberg said "Watching a show doesn’t have to be passive. You’ll be able to chat and connect with people during an episode, and join groups with people who like the same shows afterwards to build community.”

Facebook is aiming to move their 1.3. billion daily users and another 700 million monthly users to videos as they browse their news feeds, converting their 2 billion monthly users into video audiences. Facebook is running out of ad inventory with the current platform, Watch creates new inventory. 

YouTube, owned by Google, has 1 billion monthly users vs Facebook's 2 billion. A key difference is that any Facebook user browsing their news feed can easily be introduced to Facebook Watch and potentially become hooked on a new series especially when they see their friends or millions of others loving it, whereas most people who visit YouTube are already planning on watching a video. 

Social

Facebook Watch social features will help users connect with friends and show fans. Mark Zuckerberg said "It can be a chance to share an experience and bring people together who care about the same things."

Users can comment on Facebook as they watch and discuss a show with their friends live.

Shows have their own Facebook Pages and creators can set up Show Groups where fans can ask questions and interact. Shows can link to Groups and Pages. 

New shows will be released as episodes and available at set times like traditional appointment TV, but also presumably on demand thereafter, so it's Netflix meets trad TV. 

Revenue Share 

To earn money from their shows publishers can insert ad breaks, brand the content or use product placement. Or they can choose to give away their content free. It looks like publishers will receive 55% of ad revenue. 

Facebook has said that in time the publishing platform will be available to everyone - anyone will be able to contribute content. 

Initially Facebook Watch will be available to a few US users but will be rolled out worldwide in due course.