TVREV Week In Review: Facebook and TV Finally Hook Up; Netflix Goes Global But Stumbles At Home

Originally published at tvrev.com on January 22, 2016.

1. Facebook and TV: The Hook Up We’ve All Been Waiting For

Looking at the relationship between Facebook and TV is a lot like watching one of those TV series you just know the two leads are going to wind up together. It’s less a matter of “if” than “when.”

And we just may have reached that moment thanks to TV’s good friend Nielsen, who announced this week that it’s going to start incorporating Facebook (and Instagram) activity into it’s social TV ratings.

That’s a big deal in and of itself because if companies like Shareablee (whose ratings show Facebook and Instagram dominating conversation around TV with close to 90% of the chatter) are correct, it establishes Facebook as the dominant player in Social TV.

And then some.

But that’s just the first episode of this week’s two parter. Because in episode two, Facebook and TV bond over sports when Facebook launches it’s new Sports Stadium feature, which, according to Facebook’s press release, includes “posts from your friends, and their comments on plays; posts and commentary from experts, like teams, leagues and journalists, with easy access to their Pages; live scores, stats and a play-by-play; plus game info, like where to find the game on TV.”

If it works (and we have no reason to think it won’t) it positions Facebook as the go-to source for sports fans, most of whom are already on the world’s largest social network, and a likely repository for all the conversation that’s going to go on around sports on TV.

Why It Matters

With 1.5 billion users worldwide, Facebook has the sort of census level data that networks crave. They’ve also got data no network has: what brands viewers like, where they travel to, who their friends are. If you’re a TV network, that’s both a blessing and a curse because while you want the data, you’d don’t love the idea that Facebook owns it, because what’s to stop them from taking all that data and launching their own network?

What You Need To Do About It

Get your Facebook social strategy in order. Make sure your shows and stars are onboard and if you haven’t thought about things like dark posts (or worse, if you don’t know what those are) educate yourself. Don’t abandon Twitter just yet, but realize its limitations.

2. Netflix Goes Global, Hits Snags At Home

Netflix is about to raise its flag in over 130 countries, adding international subscribers hand over fist. But meanwhile back at the ranch… U.S. subscriber growth was slower than expected for the second quarter in a row. That’s a problem because according to most accounts, Netflix’s business plan is to finance its original content with the fees it collects from subscribers and it needs new subscribers to keep up with what it’s spending on original content.

So this is a problem.

It’s not that Netflix is doing anything wrong, it’s just that the market for what they’re selling might be sort of limited right now. Especially if you’ve already binged on Orange Is The New Black or House Of Cards.

There are several ways Netflix might deal with this: raise rates, add an ad-supported model or expand the scope of their original programming to attract a wider audience, something they’ve already started doing with shows like “Fuller House” (a remake of the ‘90s sitcom “Full House”) By creating shows that appeal to a much broader audience than their current stable of middle and highbrow content, Netflix may be able to get over the hump.

Why It Matters

SVOD (Subscription Video On Demand) is a relatively new business model for the TV industry and it removes advertising from the equation. Many observers have wondered how long Netflix can survive on subscription fees alone, especially as they go forward spending millions to acquire new original series, outbidding traditional networks like HBO and FX along the way. Where Netflix eventually ends up and how they pay for it is well worth paying attention to as their success (or lack thereof) will influence what many others players do.

What You Need To Do About It

Pay attention to how Netflix and other SVOD services perform over the next few years, especially in terms of domestic subscriber growth. Talk to the team that handles international sales and get their input on Netflix’s impact on the new markets they’re entering. This will all play out over the next two to three years, so be sure to stay on top of it.