Facebook TV is now a thing... Reuters reported Wednesday that Facebook is paying big bucks to Buzzfeed and Vox among others for shows that will be available exclusively on Facebook. Buzzfeed listacles, Vox explained news, and MLB baseball are on Facebook's TV guide so far. The move to capture eyeballs of cord-cutting Millennials earned Facebook a 1.3% stock price boost.
Zuckerberg's paying big bucks for some good tube... There will be two-tiers of programming. The first tier features 20-30 minute shows that Facebook's paying $250K for. The second caters to multi-tasking millennials and their short attention spans -- the 5 to 10 minute shows cost Facebook only $10-35K. Both will paid for by advertising. It's very similar to the exclusive Bloomberg news programming that's being created for Twitter.
The takeaway... is cord-cutting has created a new gold rush. Every tech company has a video strategy now to try to win ad dollars that aren't being spent on traditional cable TV, which is seen as a dying medium. The market that used to include just Netflix and Youtube now includes Facebook, Amazon, Apple, Twitter, Verizon... yada yada yada.