Facebook Inc (FB) VS Netflix, Inc. (NFLX): Battle for $15 Billion Annual Revenue?


The streaming service usage in the US has gone up by 60% just in one year. The viewership of traditional TV slipped around 20% just in the period of 6 months, thanks to the rise of Netflix, Inc. (NASDAQ:NFLX) and other streaming service. But an article on Fool said that if analyzed, it turns out that Facebook Inc (NASDAQ:FB) and Twitter are the real factors behind the decline in the traditional TV. An average US teen spends around 40 minutes on Facebook Inc (NASDAQ:FB) mobile, and 30-35 minutes or apps like WhatsApp and Instagram which are now the property of Facebook Inc (NASDAQ:FB). Services like Netflix, Inc. (NASDAQ:NFLX) don’t imbibe ads dollars as Facebook Inc (NASDAQ:FB).

Facebook, is FB a good stock to buy, Martin Pyykkonen, third quarter 2014, second half 2014,

Facebook Inc (NASDAQ:FB) and its acquired apps are becoming the top choice of advertisers, because they value the canvas used by youth. The traditional TV may have not died completely in the US, but it is mostly watched by the aged people above 50. Facebook Inc (NASDAQ:FB) apps on the other hand are used by youth, the primary driving consumer base of the modern tech, ads industry.

The source said that Facebook Inc (NASDAQ:FB) is devising different plans for ads exchange programs in other apps, games. Its LiveRails network was also developed for this purpose. If Facebook could inculcate the 20% decline in the TV viewership in its ecosystem before it goes to Netflix, Inc. (NASDAQ:NFLX), this could be a huge revenue stream. Facebook Inc (NASDAQ:FB) could add around $15 billion in its annual revenue stream from TV ads and app ads. Netflix, Inc. (NASDAQ:NFLX) is in big trouble because of Facebook Inc (NASDAQ:FB)’s advances in the streaming business.

Suggested Articles:

Highest Paid Actors For A Movie

Most Haunted Cities in America