skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Straight Talk Media & Entertainment

Ovum view

One of the biggest stories in the media and entertainment industry in the past decade has been the growing influence of Internet players. While Google has long been seen by traditional media players as a “parasite” (to quote Rupert Murdoch) and a potential threat to their business (and that story is set to run and run in Europe), Facebook’s stellar rise, not just as a social media platform but as a platform for the distribution of content, has somehow attracted less opprobrium.

Yet Facebook is a massive media player. It now serves more videos on its platform – 4 billion each day – than YouTube. The launch this month of Instant Articles, whereby news publishers (including The Guardian and the New York Times) publish content directly onto Facebook, rather than solely on their own sites, marks a further significant development in the evolution of Facebook as a media distribution platform, with mobile at its core.

Facebook’s nominally more generous arrangement (it allows media partners to advertise on Facebook and keep 100% of the revenue) contrasts with Google’s historical insistence on taking a hefty cut from any such arrangements. Facebook is smart enough to recognize the importance of a firehose of great content from third parties in keeping its users on the site for longer.

Globally, as Facebook rolls out its Internet.org project, it is seeking to extend its role in emerging markets too. For many of its users, Facebook will be their primary portal to the mobile Internet, a kind of 21st century AOL. And the integration and expansion of media content through partnership with a range of providers will be a key part of its growth strategy.

Content brands must not be reliant on Facebook alone. The demise of Zynga, whose Farmville was once a huge driver of traffic to Facebook, is a reminder of what can go wrong. Based on its latest deals, Facebook appears to realize that mutual dependence is key: it needs to work with great content providers, and vice versa. Google, by contrast, is heading for a potentially painful and expensive showdown with the European Commission as a result of its long-running dispute with some of Europe’s largest media players.

Straight Talk is a weekly briefing from the desk of the Chief Research Officer. To receive this newsletter by email, please contact us.

Recommended Articles

  • Service Provider Markets, Consumer & Entertainment Services,...

    MWC 2018 Highlights

    By Ronan De Renesse 27 Feb 2018

    Over 20 of our senior Ovum analysts and consultants attended this year’s Mobile World Congress in Barcelona at the end of February. In between meetings, briefings and presentations, our analyst team were blogging and tweeting about key developments, trends and rumors. Have a look through our daily MWC 2018 Highlights to find out what happened.

    Topics 5G AI IoT Cloud Payments SDN/NFV Smart home

  • Internet of Things

    IoT Viewpoints 2018

    IoT Viewpoints explore the IoT opportunity in 2018 and beyond. Download our latest e-book to get our newest collection of thought leadership articles on the emerging IoT trends, technologies and opportunities.

    Topics IoT

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.

;

Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700


Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

Email us at ClientServices@ovum.com

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at pr@ovum.com

Contact marketing - 
marketingdepartment@ovum.com

Already an Ovum client? Login to the Knowledge Center now