Facebook and Warner Bros. are teaming up to offer a live electronic digital film rental service. Facebook Movies only contains a few choices for viewing at the moment. If the plans go well, Warner Bros can be expanding their offerings. Following this information, Netflix stock fell, and buzzes about Facebook Credits increased. Source of article – Facebook Movies streams films directly with Facebook Credits by MoneyBlogNewz.
Screening electronic digital leases on Facebook
There’s a new Warner Bros. Facebook page features available. It is possible to rent and stream movies on Facebook. Users have this ability now. This choice is presently available for just a few films, including “The Dark Knight.” About $3 is what is paid for a 48 hour rental with 30 Facebook credits. This option is only available on a test basis to about 30 percent of United States Facebook users.
Netflix stock falls on Facebook Movies news
The information of Facebook Movies has already had an effect on the online rental business. Shares went down three percent for Netflix after the announcement. This was just in the first hour though. Netflix currently accounts for about 20 percent of all online traffic. In December of 2010, a report found that Facebook accounted for almost 10 percent of online traffic to video-sharing websites. When you combine the traffic of Facebook with in-line video sharing, Netflix could be facing its first real competition — depending on the content that is eventually made available.
The question of Facebook Credits
Facebook's system of payment that will soon be necessary may have Facebook Movies being the first non-game application to use it. Right now, $1 is paid for 10 Facebook credits with Facebook Credits. There is no assurance, however, that Facebook Credits will remain a monetary program tied exclusively to the value of the dollar. Facebook is able to increase income by changing the conversion rate very simply with its own monetary program. Facebook could effortlessly change to nine Facebook credits per dollar instead. This would lead to 1.1 cents per credit purchased instead for Facebook. Just a tiny increase like this could make a huge difference for the business. This small increase is multiplied by billions for elevated earnings.
Articles cited
Tech Crunch
techcrunch.com/2010/12/23/facebook-second-largest-source-videos/
Slate
slate.com/id/2273314/
Forbes
blogs.forbes.com/parmyolson/2011/03/08/now-you-can-rent-and-stream-movies-on-facebook/?partner=yahootix
Bloomberg
bloomberg.com/news/2011-03-08/netflix-falls-as-warner-bros-starts-offering-movies-on-facebook.html
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