Facebook may have their eyes set on the TV industry. The popular social media app is working on developing a video application for set-top boxes that can show “TV-quality” shows licensed by the social networking company, according to a report by The Wall Street Journal.
The goal of the application would be to increase ad revenue as the application would allow transitioning from the mobile devices to TVs. As a result, Facebook would have a new advertising market, which would increase the advertising rates because higher quality content will be on the Facebook TV app.
In January, Facebook announced an update to their newsfeed and a change to their algorithm. The new update would give longer videos higher ranking on the News Feed.
“As we continue to understand how our community consumes video, we’ve realized that we should, therefore, weight percent completion more heavily the longer a video is, to avoid penalizing longer videos,” the company explained in a statement.
Also, Facebook’s CEO Mark Zuckerberg revealed that the company would be increasing the amount of video content on the social networking site. Mark Zuckerberg was reportedly meeting with producers about creating original content to be shown on Facebook. The Hollywood Reporter reports the co-founder of College Humor is leading the program.
Facebook is following in the footsteps of YouTube with original content. YouTube received $100 million in funding from investors. The video-streaming social network partnered with Hollywood producers to create higher quality videos on the platform.
Ultimately, by providing longer and videos YouTube and Facebook are attempting to acquire quality video content. In turn, advertisers would most likely spend more money to advertise on a premium video than on a 6-second cat video.