Facebook (FB - Free Report) is striving to enhance its appeal among users by adopting several measures to make the platform more attractive. The company’s recent launch of a game streaming hub Fb.gg is a step toward that direction.
The launch poses fresh challenges for tech players like Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) by taking on Twitch and YouTube Gaming, respectively.
Notably, Facebook’s new portal will feature live and prerecorded gaming video in one place. It will also feature e-sport competitions and gaming conferences.
Moreover, Facebook announced that it will be funding content and e-sports for aggregating them on the portal. In addition, the company launched Level Up that will enable streamers to build a fan base and earn money by collecting digital currency called Facebook Stars.
Focus on Boosting User Engagement
Facebook’s efforts are seen as a way to attract younger demographic to the platform. Per latest research, the main Facebook platform is losing its popularity among young users to other platforms like Snap (SNAP - Free Report) owned Snapchat as well as its own photo and video sharing application, Instagram.
The company’s attempt to capitalize on the growing demand for video games is expected to draw/retain users to the platform.
In 2017, Facebook announced the addition of two new features, live streaming and video chat, to its Instant Games platform. The features enable users to engage in video chats while playing games with one another.
We note that the social media giant is trying to be a one-stop destination for videos. It has been putting in its best efforts to boost content and attract more advertisers. This is evident from the expanding Watch video content.
Additionally, Instagram is working on a feature that will allow users to post long-form video content. A dedicated space that will feature scripted shows, music videos, and more in vertical orientation and 4K resolution is also in the works. Instagram is reportedly meeting social media stars and content creators to produce long-form videos for the platform.
We believe that Facebook’s recent move can help it to strengthen its position in the gaming space and increase its revenues from video ads.
Facebook currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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