Sarah Hindlian an analyst at Brean Capital believes that Facebook has a future in online streaming.
Recently a major disruption in terms of online streaming was observed when HBO- the Time Warner Inc. owned enterprise announced that it will broadcast episodes of its two upcoming comedy shows namely Ballers and The Brink through Facebook Inc.’s social media platform.
Sarah Hindlian who is an analyst at Brean Capital has geared up to work on the progress and development. According to her, Facebook at this point cannot really establish itself as a full-fledged television content hosting platform at least in the short term but this actually provides them another new dimension to penetrate into. This has become the next focal point for the company.
According to the company’s research note published recently, Ms. Hindlian mentioned that the company is in talks with several content providers for television over the past three years. The aim is to broadcast original content through their platform.
Facebook through this endeavor wishes to enhance the timeline views, bolster user growth and also establish itself again as the “passport to the internet.” Previously she reported that the television companies are extremely reluctant at this point to collaborate work with FB on this venture. However, while considering the increased ratio of advertisement related expenditures on online platform, television companies will now be extremely keen to work with the social media behemoth in a “blended advertising share model.”
Ms. Hindlian further mentioned that the free streaming option which Facebook is offering for The Brink and Baller is said to be a way to bolster the subscriptions on HBO Now. The premium episode is sad to feature “call-to-action advertisement” by Facebook. Analysts at this point cannot really claim the potential of this initiative but many believe that this will help them to further bolster revenues and pursue its growth in terms of original content streaming. This domain can also become a source of interest for investors.
Analysts at Brean Capital have reiterated a Buy rating on the stocks with a $108 target price.
This does not really come as a surprise that Facebook is now interested to pursue its career in the online streaming market. This also has room to stream in money since it will add to the advertisement revenues. Recently, the company also rolled out several advertisement formats during the Cannes Lions Festival. Facebook’s core agenda at this point of time is to integrate innovation and creativity to its platform.
Hence, in a nutshell, Facebook is on the right track and this domain can actually help them in the long and short run both.
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