Facebook is planning a TV app to distribute video content and take a slice of the lucrative TV advertising market.
(CCM) — Facebook is developing a video app targeted at smart TVs and set-top boxes including Apple TV, according to a report in the Wall Street Journal. The company is working hard to transform itself into a "video-first" company by promoting live-streaming and integrating more videos into its Instagram photo-sharing app. The new video app will provide a way for Facebook to offer its content on television screens and to compete with television channels for advertising revenues. The social network is also hoping to license TV-quality programming from media companies, according to the report, and the new app would provide a way to distribute that content so that viewers can watch it easily on TV sets.
Facebook's interest in video stems from the fact that there is little scope to increase advertising content in its news feed, the main source of the company's revenue. Taking a share of the U.S. television advertising market, which is worth $70 billion annually, could help the company to continue to grow in the face of stalling news feed revenue. Facebook is expected to announce fourth-quarter earnings of about $8.5 billion on Wednesday, up 46% on the previous year but the slowest rate of growth in five quarters.
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