2 dozen shows at launch broken up into 2 tiers:
1) Premium/Longer form (30+ minutes)
2) Shorter length (5–10 minutes)
Facebook is facing some headwinds in getting traditional content producers to license video. Some have gone as far as to say “Apple 2012 = Facebook 2017”.
The revenue model for digital video is going in 2 distinct directions:
1) Ad supported (Facebook, Google, etc.) — These companies need more video inventory in order to grow. Creating your own content is one way to do this.
2) Subscription supported (Netflix, Amazon, etc.) — Some of these companies may generate revenue from advertising in the future but are currently focused on creating bundles that generate consistent monthly revenue.
What happens to the advertising industry if the wealthy consumers that are currently the most valuable advertising targets continue to move into non-ad formats for video?
