What's So Special About Facebook Movies? (NFLX, AMZN)

Movies are now on Facebook. Do you care?

In the world of me-too strategies, this announcement does not seem to be worth the buzz that it has received this morning. What are the odds that Facebook's avid users – the people who come to the service for more than status updates – haven't seen The Dark Knight yet? That film has been available on DVD since December 2008. Moviegoers who skipped the Christopher Nolan epic 30 months ago are not any more likely to watch it now just because they can pay for it with Facebook credits.

With Netflix NFLX, Sony SNE, Amazon AMZN and Apple AAPL already offering movie rentals (along with on-demand services from DirecTV DTV, Comcast CMCSA, Time Warner Cable TWC, and other cable and satellite providers), Facebook is attempting to enter one of the most crowded markets in entertainment. And it is doing so with a movie that's nearly three years old.

In the years to come, the Facebook/Warner Bros. venture could be huge for both companies. By bringing new films to Facebook, Warner Bros. will gain access to more than 600 million registered users. In turn, Facebook could gain an edge with exclusive content (deleted scenes, behind-the-scenes documentaries, etc.) and/or exclusive clips from upcoming films. Facebook could also use its power to persuade Warner Bros. to bring new movies to the site before they are available anywhere else. If Facebook did the same with other studios, it would have the potential to create a whole new empire.

That, however, is the best-case scenario for Facebook. In the meantime, moviegoers are left to wonder why the company chose to launch the rental service with such an old film. If that decision belonged to the studio alone, then Warner Bros. has made a terrible mistake.

In 2008, there was no stopping The Dark Knight. In addition to its profit-building hype (which was insurmountable), the film was actually good. Many viewers were happy to return to the theater for repeat viewers. Many were eager to buy the film when it was released on DVD.

Today, it's a whole other story. The Dark Knight is no longer the hottest film of the year. Warner Bros. claims the rental offering is only a test. But if that's the case, the studio should have taken its cues from Hulu.

Hulu started as a free platform for new television shows. Over time, the site began to add a collection of older TV series, as well as indie movies, anime imports, and other content not offered by competing services.

Last year, the company introduced Hulu Plus, a monthly service that allows subscribers to view the site on a multitude of devices, particularly those from Apple (iPhone, iPad, iPod Touch). The service, which is currently priced at $7.95 per month, also provides access to view every episode of The Office, 30 Rock, and other hit shows.

Hulu's strategy has been very successful. While its IPO could be dead, the company is still a thriving enterprise.

Of course, Hulu isn't the only success story in movie/TV streaming. Netflix (the current market leader) has taken what was once a risky concept and turned it into a multi-billion-dollar industry.

With that in mind, it's hard to look at today's announcement without anything but skepticism and disappointment. Facebook may very well have the potential to overtake the competition. But that doesn't mean it will be able to erase the memory of its lackluster debut.