- Facebook Inc FB plans to monetize its live online sports leagues broadcasting games via a pay-per-view option instead of a subscription-based model to join the likes of HBO, Showtime WWE, and mixed martial arts company UFC, CNBC reports.
- Facebook is planning to tap high school sports teams and minor leagues and enable the event hosts to make money through the feature.
- The social media company acknowledged the growth potential of online events while offering a global income source to the event hosts.
- Facebook’s paid online events are accessible in 44 global markets.
- Facebook reported 2.85 billion monthly active users and 1.8 billion daily active users.
- Businesses and users can host live streams for moments, including course-like events like cooking, gaming tournaments, and announcing new products.
- Second and third-tier sports leagues and high schools can use the paid feature to draw an audience.
- The March professional triathlon event Challenge Miami drew over 17,000 people who bought tickets for $2.99 each, beating the stadium and international broadcasted viewership.
- The Verzuz event featuring prominent musical stars in a battle-style event on Instagram also gained traction during the pandemic. Platforms like OnlyFans also hint towards the popularity of the pay-per-view model.
- Paid online events generated 28% more revenue for content creators than third-party services, based on a marketing agency observation. The replay feature of the paid online events further contributed to its popularity.
- Facebook found more potential in smaller sports companies than top sports leagues, restricted by broadcasting rights.
- Facebook’s geofencing could help bypass TV and extend live streaming beyond North America and monetize other content, like team practices and other behind-the-scenes videos. All of which could help them engage a different audience distinct from the TV audience.
- Facebook is testing a geofencing feature to help hosts mark specific regions for streaming events.
- Facebook will elaborate on the fee structure in the upcoming weeks.
- Price action: FB shares traded higher by 0.67% at $312.02 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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