Facebook is preparing its biggest step in the videos to date: he wants to sell monthly subscriptions on cable television networks such as HBO, and hopes that they will look in its own app.

The social network discusses with pay TV channels, including HBO, Showtime and Starz, offer to sell services streaming TV of these companies in Facebook. To consumers who subscribe to channels, they can view their own resources on Facebook, most often in the Watch section, but also can view them on other platforms and devices such as Roku TV.

This is the model with which broadcasters are familiar: Amazon does something similar for several years, and Apple hopes to do the same next year.

Industry sources report that mediacommand Facebook for several months, discussing a deal with HBO and others, and would like to release the product in the first half of 2019. A Facebook representative declined to comment.

If this happens, there will be both a logical way for Facebook, given its big ambitions to become a portal, and a large deviation for the company: although Facebook in the past from time to time engaged in electronic Commerce, he did not make serious attempts to sell anything to consumers directly.

Facebook has spent several years trying to convince media companies to create content for its 2.3 billion users, but the results were modest. But it also signals that he is willing to spend money on purchasing the software premium. In 2017, spent $600 million on unsuccessful attempt to broadcast Indian cricket matches; last month the social network began to show some old TV shows, including “Buffy the vampire Slayer”, as part of the deal with 21st Century Fox.

Industry executives believe that staleproizvoditeli will expect that Facebook will pay in advance for long-term contracts and to compensate for them by charging a subscription fee for some channels. Platforms such as Apple and Amazon, as a rule, withhold from any income produced by them on subscription from 15% to 30%.

Sale of content or anything else its users would be a significant change for Facebook, which has always retained its basic service is free and relied on advertising almost all their income. But sources say that one of the reasons why the company is interested in selling subscriptions to pay TV, is that already spend a lot of money on advertising their services on Facebook. It is logical: instead of having to send users who clicked on these ads beyond Facebook, the company itself may receive part of the income.

SOURCE: Recode

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