It is pointed out that Meta's video sharing service ``Facebook Watch'' has terminated its service to sell Netflix advertisements
A document was filed in court claiming that Meta has reduced the service of Facebook Watch (now Facebook Video), a video-on-demand service that has been operating in the United States since 2017, in order to maintain advertising revenue from Netflix. I found out that it was.
(PDF file)gov.uscourts.cand.369872.739.0_1.pdf
Facebook let Netflix see user DMs, quit streaming to keep Netflix happy: Lawsuit | Ars Technica
https://arstechnica.com/gadgets/2024/03/netflix-ad-spend-led-to-facebook-dm-access-end-of-facebook-streaming-biz-lawsuit/
In April 2023, Meta announced that it would stop producing original content for Facebook Watch , effectively withdrawing from the streaming business. This withdrawal was said to be one of Meta's cost-cutting measures, but in a class action lawsuit that has been going on since 2020, it was stated that ``the withdrawal from the streaming business was in order to build a good relationship with Netflix.'' I found out that a text making the claim had been submitted.
This text was submitted on April 14, 2023, and its existence was revealed by the court on March 23, 2024. According to the documents, Netflix CEO Reed Hastings was a member of Facebook's board of directors from 2011 to 2019 and was instrumental in building a close relationship between Facebook and Netflix. During this period, Netflix leveraged its presence in Facebook's advertising department, including access to privileged analytics tools, including access to Facebook users' private message inboxes, in exchange for advertising deals worth hundreds of millions of dollars (tens of billions of yen). The article claims that by increasing Facebook's sense of humor, it helped Facebook withdraw from the streaming business.
When the two companies appeared to be competing with each other after the launch of Facebook Watch in 2017, Hastings said, ``There hasn't been any major conflict yet,'' and ``We're not bidding on the same programming.'' said .
Facebook CEO Mark Zuckerberg sent an email to the head of Facebook Watch in May 2018 saying, ``We are cutting the budget by $750 million (approximately 110 billion yen),'' and the company's streaming business. The policy has changed significantly in just one to two years from 2016 and 2017, when the budget was over 1 billion dollars (about 151 billion yen). During this period, Netflix is estimated to have increased its advertising spending on Facebook to $150 million (approximately 22.7 billion yen) and signed a contract to strengthen data analysis.
In 2019, Netflix's advertising expenditure on Facebook exceeded $200 million (approximately 30 billion yen). In addition, Mr. Hastings left Facebook's board of directors in late 2019.
The class action lawsuit against Facebook in which this article was filed is still pending.
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