According to the Financial Times, Facebook users might find video advertisements in their newsfeeds as soon as July, with Facebook hoping to grab some advertising revenue away from TV and open up a new revenue stream to appease shareholders. Facebook’s client council include brands like Coca-Cola, Ford, and Unilever, all of whom expect to take part in trials. The worry, however, is that users will find the experience so disruptive that they will move on to other websites and social networks. Indeed, just last week it was reported that Facebook’s user numbers are on the decline despite Facebook Home and other attempts to keep users engaged. Facebook will present the videos silently, with the user choosing whether or not to activate the sound. At what price will this video advertising come? That remains to be seen, but raises another question: how long until Facebook offers an ad-free newsfeed, for a price?
Youtube has, for some time now, been expanding its services into multiple entertainment platforms, but according to a report from the FInancial Times it is now on the verge of revealings subscription services for some of its special video channels. According to the Financial Times report, it will include up to 50 different channels, with subscription prices apparently starting at “as little as $1.99 a month.” For what it’s worth, Google has followed up saying that it’s working on investigating “a subscription platform that could bring even more great content to YouTube.” Which basically seems like it amounts to a yes; a subscription based YouTube could throw a massive wrench into the television and online streaming service industry that exists today. For consumers and advertisers alike, the announcement could mean new opportunities and models, so this announcement is worth taking into consideration.
Financial Times: Our Digital Subscribers Now Outnumber Print, And Digital is Half of the FT’s Revenue