Facebook Launches Pay-Per-View Service
Pay-Per-View Gets an Overhaul
Facebook (FB) is gearing up to turn its live online events platform into a pay-per-view service which will help sports teams make money by broadcasting their games online.
The social media giant is targeting sports companies, high school sports teams, and smaller sports leagues with the new pay-per-view service. Viewers will be able to pay for virtual tickets through Facebook’s live streaming platform and then watch the live event. It will be similar to how viewers might pay to watch a live boxing match on cable.
Facebook’s Plans for its Platform
Facebook’s foray into pay-per-view events is in its early stages. Facebook launched paid online events last August and the service is now available in 44 markets across the globe. Through the platform, users request permission to host an event and then after Facebook conducts an integrity check it usually approves the request. The system can be used to host live streams, classes, gaming tournaments, and more.
Facebook is now working to attract people who will use the service for live sports. So far these efforts have been successful. March for Challenge Miami, a professional triathlon event, sold tickets on the Facebook platform for $2.99 each. More than 17,000 people viewed the event.
Pricing for the New Service
Facebook is not currently taking a cut of the revenue content creators make from selling tickets on its platform. But that grace period ends in August, unless Facebook decides to extend it. The company plans to provide an update on fees in the next few weeks. Facebook might also begin putting ads on the platform, though it has not yet announced plans to do so.
Facebook’s new pay-per-view service is still in its infancy and the company is still working to determine what it will look like in its final form. As pandemic restrictions ease, there are many unanswered questions about the future of virtual entertainment. Facebook is making a bet that consumers will still be eager to stream events and sports at home—even when in-person entertainment options are available.
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