- Meta Platforms Inc's META Facebook migrated resources from its Facebook News tab and newsletter platform Bulletin, focusing more on the creator economy, the Wall Street Journal reports based on senior executive Campbell Brown.
- Migrating resources from News and Bulletin marks Facebook's broader shift toward the metaverse and short-form video content creators that can compete with ByteDance Ltd's TikTok.
- Brown said the company would shift engineering and product support away from the two products as "those teams heighten their focus on building a more robust Creator economy."
- Also Read: Credit Suisse Continues To See Sharp Upside In Meta, Alphabet Despite Double-Digit Price Target Cuts
- Bulletin, unveiled in June 2021, is a subscription platform that competes with Substack and aims to support independent writers.
- "We remain committed to the success of creators and are doing even more, to ensure they can find audiences on Facebook and grow engaged communities there," Brown added.
- Facebook launched Facebook News in 2019 when Facebook and Alphabet Inc's GOOG GOOGL Google grabbed the lion's share of the digital ad market.
- Facebook showcased Bulletin in 2021 to capitalize on the newsletter boom.
- The stepping up of global regulation aiming to require technology platforms to pay for news led to Facebook's shift away from its paid news product.
- Facebook previously shared plans of foregoing commission on revenue earned by creators via its platform till 2023.
- Recently a TikTok chief and an analyst reasoned why Facebook's attempts to emulate the former would be futile.
- In 2022, TikTok looks to ramp from $4 billion to upwards of $12 billion in ad revenue (ex-China) ahead of plan based on Barclays' channel checks.
- Price Action: META shares closed higher by 5.11% at $175.78 on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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