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Facebook is expanding its paid event feature into pay-per-view local sports that will provide smaller opportunities to generate income also helping to get more views and boost its video offering.
As reported by CNBC:
“The social media giant envisions high school sports teams and smaller leagues using the feature that allows users to make money for virtual attendance, and keep ticket profits – for now. And Facebook plans to invest in paid online events, the live-streaming feature that lets you pay for a virtual “ticket” to watch, sort of like pay-per-view on cable.”
Facebook could come up with a slate of local sports matches accessible by digital tickets, enabling viewers to tune in and potentially establishing a new ecosystem of sports targets engagement.
What Twitter is doing is not entirely original. It has tried the same approach with live-streams of various second-tier sporting events, to build niche followings and maximize its own live video inventory.
Facebook has started using ticketed events to promote leagues and incentivize promotions and amplification among their dedicated fans, but these are divided results since this is a ticketed event.
By providing more specific audience subsets, this could also have advantages for advertisers. For instance, suppose you sell lacrosse equipment – market specifically to lacrosse fans within different regions would be beneficial. That might not generate a great deal for Facebook ads, but if it can build up a slate of smaller league sports, and provide specific advertising opportunities for a range of businesses, then that could end up working well for it, if it can get it right.
Those prices are likely to rise if Facebook takes a cut from ticket sales.
With this in mind, it makes sense that Facebook needs to build out its paid events tool by applying this technology, and I’m interested to see what sort of sports catalog it builds, and whether that extends to pro-sport leagues, furthering its video offerings. We will keep you updated on any progress we make. This could be a huge win for local and niche brands.
A gamified event feature at Facebook sees minor league and local competitions with a greater opportunity to generate income, while also bringing more viewers to Facebook’s video service and helping to boost its video offerings.