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Facebook Adds Live Streaming and Video Chat to Instant Games
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Facebook Inc. announced the addition of two new features, live streaming and video chat, to its Instant Games platform launched a year back on both Facebook and Messenger.
Facebook will conduct a test run of the video chat feature, which will enable Messenger users to engage in video chats while playing games with one another, before rolling it out early next year. The company mentioned Zynga’s Words with Friends to be the first game to include this feature.
The live streaming feature has however been rolled out already. It enables gamers to broadcast their games via Facebook Live and engage in conversations.
Along with these, Facebook also announced a number of games to be launched on its platform by next year. The games include the highly popular Angry Birds, Sonic Jump from SEGA, LINE’s Disney Tsum Tsum and a new puzzle game by GungHo Online Entertainment Inc.
The platform now offers 70 games globally from over 100 developers compared with the initial launch of 20 games in 30 markets.
Notably, Facebook has gained 55.6% year to date, substantially outperforming the industry’s 24.5% rally.
Focus on Boosting User Engagement
Facebook’s attempts to integrate more video content into the platform are expected to increase user engagement. The company focuses on “time well spent” rather than just increasing the time spent on its platform in order to build a better community.
Talking about its video efforts, on the last conference call, CEO Mark Zuckerberg mentioned that “connecting with friends and family and having those meaningful interactions is more important than just consuming content.”
The CEO believes videos to be more “engaging than a photo and a better representation of that than writing it out in text.”
We believe the addition of live streaming and video chatting while playing games will increase social interaction and thereby make the games more interesting and engaging.
We note that Facebook was once the hub for social gaming but all that changed with the arrival of mobile games. Mobile games quickly gained precedence in the social gaming space. Facebook took a hit on the revenue front as in-game purchases floundered. Per Tech Crunch, at its peak, Facebook made about $250 million from in-game purchases.
In October, Facebook rolled out testing of monetization options to select developers. The company began testing of in-app purchases and advertisements on Instant Games platform. We believe monetizing Instant Games will help Facebook to boost its non-advertising revenues.
In the last reported quarter, revenues from Payments and other fees decreased 5% year over year owing to reduction in payment revenues related to PC games against 49% growth in advertising revenues. Management warned that the segment will face further decline as PCs lose market share.
The company’s attempts to boost its non-advertising revenues as well as attract users to spend more time on its platform are prudent in our view. Moreover, the launch of live streaming games will also help it counter growing competition from YouTube and Microsoft who are ramping up their efforts to tap the market.
Long-term earnings growth rate for IPG Photonics, NetApp and NVIDIA is projected to be 19.7%, 11.3% and 10.3%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Facebook Adds Live Streaming and Video Chat to Instant Games
Facebook Inc. announced the addition of two new features, live streaming and video chat, to its Instant Games platform launched a year back on both Facebook and Messenger.
Facebook will conduct a test run of the video chat feature, which will enable Messenger users to engage in video chats while playing games with one another, before rolling it out early next year. The company mentioned Zynga’s Words with Friends to be the first game to include this feature.
The live streaming feature has however been rolled out already. It enables gamers to broadcast their games via Facebook Live and engage in conversations.
Along with these, Facebook also announced a number of games to be launched on its platform by next year. The games include the highly popular Angry Birds, Sonic Jump from SEGA, LINE’s Disney Tsum Tsum and a new puzzle game by GungHo Online Entertainment Inc.
The platform now offers 70 games globally from over 100 developers compared with the initial launch of 20 games in 30 markets.
Notably, Facebook has gained 55.6% year to date, substantially outperforming the industry’s 24.5% rally.
Focus on Boosting User Engagement
Facebook’s attempts to integrate more video content into the platform are expected to increase user engagement. The company focuses on “time well spent” rather than just increasing the time spent on its platform in order to build a better community.
Talking about its video efforts, on the last conference call, CEO Mark Zuckerberg mentioned that “connecting with friends and family and having those meaningful interactions is more important than just consuming content.”
The CEO believes videos to be more “engaging than a photo and a better representation of that than writing it out in text.”
We believe the addition of live streaming and video chatting while playing games will increase social interaction and thereby make the games more interesting and engaging.
We note that Facebook was once the hub for social gaming but all that changed with the arrival of mobile games. Mobile games quickly gained precedence in the social gaming space. Facebook took a hit on the revenue front as in-game purchases floundered. Per Tech Crunch, at its peak, Facebook made about $250 million from in-game purchases.
In October, Facebook rolled out testing of monetization options to select developers. The company began testing of in-app purchases and advertisements on Instant Games platform. We believe monetizing Instant Games will help Facebook to boost its non-advertising revenues.
In the last reported quarter, revenues from Payments and other fees decreased 5% year over year owing to reduction in payment revenues related to PC games against 49% growth in advertising revenues. Management warned that the segment will face further decline as PCs lose market share.
The company’s attempts to boost its non-advertising revenues as well as attract users to spend more time on its platform are prudent in our view. Moreover, the launch of live streaming games will also help it counter growing competition from YouTube and Microsoft who are ramping up their efforts to tap the market.
Facebook, Inc. Revenue (TTM)
Facebook, Inc. Revenue (TTM) | Facebook, Inc. Quote
Zacks Rank & Key Picks
Facebook carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include IPG Photonics Corporation (IPGP - Free Report) , NetApp Inc. (NTAP - Free Report) and NVIDIA Corporation (NVDA - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Long-term earnings growth rate for IPG Photonics, NetApp and NVIDIA is projected to be 19.7%, 11.3% and 10.3%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>