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BY MIRANDA WHEATLEY
You're watching multisource business news analysis from Newsy
Netflix, Hulu, the classic YouTube and now … Facebook? - Warner Brothers Studios announced Monday they’ll be using the social media platform to start streaming movies.
“Users have a 48 hour window to watch the film, during which time they can make comments, pause and replay, all while still on their Facebook page -- don't want to miss those pending requests, after all!”
But as MSNBC reports the movies won’t be free.
“If you ‘like’ for example The Dark Knight on facebook then for the equivalent of about $3 dollars in facebook credits you can rent the film and watch it via your facebook.”
Warner Brother’s new partnership comes shortly after instant streaming giant Netflix pulled their movie review sharing program from the social network. A financial expert for Goldman Sach’s tells Barron’s...
“...this is no immediate threat to Netflix, given that this is effectively ‘pay per view,’ more like video-on-demand than Netflix’s streaming subscription. But … Facebook has more than 500 million active users, half of whom are online on any given day, versus just 20 million subscribers at Netflix. … ‘Facebook could become a credible threat.’”
Barron’s also reports Netflix’s shares fell another 5 percent Tuesday, which makes for a total of 20 percent since early February. But The Wall Street Journal says the drop is not a direct result of Warner Brothers' move and has more to do with Amazon.com’s tv-streaming service introduced last month.
Warner Brothers plans to start the renting experiment with The Dark Knight, and make more movies available later. The rental fee is measured in credits, a currency the social network introduced in January. Until now credits were used primarily in games - it takes 10 facebook credits to equal a dollar.
A writer for All Things Digital says the only surprising thing about the partnership is that it’s taken this long to come about.
“...other video sites are trying to figure out how to add social ‘hooks’ into their experience, Facebook doesn’t have that problem. It is the social hook. … Facebook is either the 2nd or 6th-biggest video site in the U.S., depending on who’s counting. And that’s without the benefit of any Hollywood hook-up at all: Just the clips you and your pals put up.”
But Wired says Netflix still has the upper hand when it comes to devices.
“Facebook currently lacks the device integration that Netflix has achieved. For instance, watching Netflix streaming movies on a big TV is simple for those who own game consoles, Tivos, certified Blu-Ray disc players, media playing devices like Apple TV, Google TV and the Roku Box, iPhones, iPads and Android devices (sort of).”
So what do you think? Will this new partnership leave the competition reeling or will the social media and movie mix be too much for one site?
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