- Convergence of Social Networking & Video Entertainment
Want to watch a movie or TV show and simultaneously chat about it with remote friends who are also watching?
In a major announcement and a first for a major studio, Warner Bros Digital Distribution has started the rental of selected movies on Facebook in the US. Facebook members can rent the movies for $3 or 30 Facebook credits. The Batman flick “The Dark Knight” is the first to be available.
It’s a big potential audience, much larger than iTunes, Netflix or Amazon. Facebook has about 600 million users globally. Facebook is currently second only to YouTube as an online video-watching site.
Facebook has wanted to stream professionally made videos. Last year it offered the PBS documentary “Earth Days” before it was shown on TV.
Warner Bros said the move is a trial but then said more movies will be added on a regular basis in the months ahead. It did not say how many movies it would ultimately make available simultaneously or which ones they would be.
While watching, viewers have Facebook functionality such as posting comments about the movie, interacting with friends and updating their statuses. They can optionally watch in full screen and, like a DVR, pause and resume playing the next time they log in.
The studio said it will add the ability for viewers to purchase films in the future.
Upon renting a movie, viewers can watch it as much as they want during a 48-hour period. Facebook gets a cut of the revenue when Facebook credits are used.
Thomas Gewecke, president of Warner Bros Digital Distribution, said, “Making our films available through Facebook is a natural extension of our digital distribution efforts. It gives consumers a simple, convenient way to access and enjoy our films through the world’s largest social network.”
Warner Bros on Facebook will compete mainly against sites that offer movie purchases and rentals such as iTunes and Amazon, at least for now. Netflix is not a direct competitor because it’s a monthly subscription service. However, the following question arises: how much video entertainment can a person watch?
Warner Bros said it has not yet scheduled a rollout in other countries. It could use Facebook to distribute worldwide, depending on the distribution licenses it has signed with other distributors.
More than Just another Online Video Service
The Warner Bros deal could be very big for several reasons:
1. Facebook users are a huge market. Not only are there 600 million Facebook users globally, but most of them, especially the young, log in daily, many even multiple times daily. They are hooked on communicating with their friends and sharing their thoughts and actions. They are also accustomed to watching videos on Facebook.
2. It is a way for the studios to bypass traditional online video services like Netflix, Hulu Plus and iTunes. But, it will also give other video content producers, such as the independents and the made-for-the-Web creators, a way to reach consumers directly.
3. The move is a step towards the convergence of video content and social networking in the living room. The significance goes beyond the size of the potential market and to the heart of the matter: how do we influence what people watch? People are influenced most by their peers. Whether the social network is on the screen alongside the movie or on a tablet while the film is playing, social network users influence what each other watches, especially among teens, who face much more peer pressure.
4. It could be a threat to the pay-TV operators and broadcasters, but that’s a long time in the future. For now it’s just a start, but one that has promising and foreboding implications.
The next big step for Facebook and the studios is to move beyond the PC by getting the Facebook movie service on the TV set. It’ll be interesting to see whether Facebook starts appearing as a widget on smart TVs.
Warner Bros has been very aggressive in its online ventures. Last month it released apps for Apple’s iOS devices that let viewers watch “The Dark Knight” and “Inception.” It’s the first time movies have been available on Apple devices outside of iTunes. The first five minutes are free. The full versions of “The Dark Knight” are $9.99 and “Inception” is $11.99, the same as on iTunes.
To see 4 free editions of The Online Reporter, the weekly source for competitive intelligence about digital content, online entertainment services, mobile media and wireless networks, visit www.onlinereporter.com/trial_copies.php
Want to watch a movie or TV show and simultaneously chat about it with remote friends who are also watching?
In a major announcement and a first for a major studio, Warner Bros Digital Distribution has started the rental of selected movies on Facebook in the US. Facebook members can rent the movies for $3 or 30 Facebook credits. The Batman flick “The Dark Knight” is the first to be available.
It’s a big potential audience, much larger than iTunes, Netflix or Amazon. Facebook has about 600 million users globally. Facebook is currently second only to YouTube as an online video-watching site.
Facebook has wanted to stream professionally made videos. Last year it offered the PBS documentary “Earth Days” before it was shown on TV.
Warner Bros said the move is a trial but then said more movies will be added on a regular basis in the months ahead. It did not say how many movies it would ultimately make available simultaneously or which ones they would be.
While watching, viewers have Facebook functionality such as posting comments about the movie, interacting with friends and updating their statuses. They can optionally watch in full screen and, like a DVR, pause and resume playing the next time they log in.
The studio said it will add the ability for viewers to purchase films in the future.
Upon renting a movie, viewers can watch it as much as they want during a 48-hour period. Facebook gets a cut of the revenue when Facebook credits are used.
Thomas Gewecke, president of Warner Bros Digital Distribution, said, “Making our films available through Facebook is a natural extension of our digital distribution efforts. It gives consumers a simple, convenient way to access and enjoy our films through the world’s largest social network.”
Warner Bros on Facebook will compete mainly against sites that offer movie purchases and rentals such as iTunes and Amazon, at least for now. Netflix is not a direct competitor because it’s a monthly subscription service. However, the following question arises: how much video entertainment can a person watch?
Warner Bros said it has not yet scheduled a rollout in other countries. It could use Facebook to distribute worldwide, depending on the distribution licenses it has signed with other distributors.
More than Just another Online Video Service
The Warner Bros deal could be very big for several reasons:
1. Facebook users are a huge market. Not only are there 600 million Facebook users globally, but most of them, especially the young, log in daily, many even multiple times daily. They are hooked on communicating with their friends and sharing their thoughts and actions. They are also accustomed to watching videos on Facebook.
2. It is a way for the studios to bypass traditional online video services like Netflix, Hulu Plus and iTunes. But, it will also give other video content producers, such as the independents and the made-for-the-Web creators, a way to reach consumers directly.
3. The move is a step towards the convergence of video content and social networking in the living room. The significance goes beyond the size of the potential market and to the heart of the matter: how do we influence what people watch? People are influenced most by their peers. Whether the social network is on the screen alongside the movie or on a tablet while the film is playing, social network users influence what each other watches, especially among teens, who face much more peer pressure.
4. It could be a threat to the pay-TV operators and broadcasters, but that’s a long time in the future. For now it’s just a start, but one that has promising and foreboding implications.
The next big step for Facebook and the studios is to move beyond the PC by getting the Facebook movie service on the TV set. It’ll be interesting to see whether Facebook starts appearing as a widget on smart TVs.
Warner Bros has been very aggressive in its online ventures. Last month it released apps for Apple’s iOS devices that let viewers watch “The Dark Knight” and “Inception.” It’s the first time movies have been available on Apple devices outside of iTunes. The first five minutes are free. The full versions of “The Dark Knight” are $9.99 and “Inception” is $11.99, the same as on iTunes.
To see 4 free editions of The Online Reporter, the weekly source for competitive intelligence about digital content, online entertainment services, mobile media and wireless networks, visit www.onlinereporter.com/trial_copies.php
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