Facebook Working To Monetize The “Like” ButtonBy: Shaylin Clark - July 3, 2012
With Facebook’s stock price making a slow recovery following the spectacular disaster that was the social network’s IPO, the company is reportedly looking to beef up its revenue. Facebook is reportedly in talks with TV executives on monetizing Facebook’s “Like” button for videos.
The details of the plan are a little unclear, but according to the New York Post, Facebook wants to partner with network and cable TV to host videos – whether entire episodes or clips isn’t clear. Facebook would provide the companies with valuable information about the popularity of their content – via the Like button – while the companies would increase the exposure of Facebook’s video hosting.
While Facebook does currently host trailers and other videos, they’re reportedly making very little money from it. This plan would allow Facebook to increase the ad revenues generated by its video. According to the Post, the plan has gotten mixed reactions from the execs, who are concerned about limiting their own financial exposure. Nevertheless, it seems that Facebook has already gotten a deal in place with TBS. Though the terms of the deal are unclear, it seems that Facebook will promote some of TBS’s content, while in turn netting a share of the revenues from advertising associated with the content.
The deal with TBS notwithstanding, this plan appears to still be in fairly early stages. With their stock price still well below the IPO price and revenues down since last quarter, Facebook certainly needs all the help it can get.