Facebook to Enter Video Streaming

Facebook to Enter Video Streaming

I admit, I’m not a big Facebook-er. I use it as a necessary evil, not a destination site. But it looks like the folks who brought us the “like” button are taking their insinuation into our lives a step farther; now they’re going to stream video too!

According to the Wall Street Journal, Warner Brothers is floating a trial balloon in the form of of “The Dark Knight”. Rather than stream it through a subscription service like Netflix, you’ll be able to rent “The Dark Knight” on Facebook for 30 credits (or $3.00). While it’s only one movie, it’s enough to get many people sweating bullets over what this means for Netflix.

The WSJ says:

The mere threat of a Web giant like Facebook entering the movie-streaming arena was enough to spook investors in Netflix and Coinstar. Netflix shares were down $11.95, or 5.8%, to $195.45 in 4 p.m. Nasdaq trading Tuesday. Coinstar shares fell $2.36, or 5.3%, to $42.18 Tuesday on the Nasdaq.

Some analysts on Tuesday said that Facebook could evolve into a serious competitor for Netflix and other online video services.

“We believe that on a short-term basis, this is not an immediate threat to Netflix,” wrote Goldman Sachs analyst Ingrid Chung in a note. “On a longer-term basis, we think that Facebook could become a credible threat as its video business evolves.”

Steve Swasey, a spokesman for Netflix, said that “we’ve said for a long time when you have a big growing market there will be competition.”

I am very curious what this turns into long-term. It seems like studios are desperate to find a way to make money, but is the audience for a one-time rental the same as Netflix? And will people be willing to put up with watching a whole movie on Facebook, versus on their iPad or nice big HDTV? Personally, I like Netflix because I can watch it on my TV…unless it was a movie I really wanted to see, and I had absolutely no other options, I can’t see myself renting through Facebook.

Would you rent through Facebook over Netflix or iTunes? Share your thoughts below!

Via The Wall Street Journal

About the Author

Carly Z
Carly has been a gadget fiend for a long time, going back to her first PDA (a Palm M100). She quickly went from researching what PDA to buy to following tech news closely and keeping up with the latest and greatest stuff. She loves writing about ebooks because they combine her two favorite activities; reading anything and everything, and talking about fun new tech toys. What could be better?