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Author: Michael Goodman
Publication Date: 10月 04 2011
Pages: 10
Report Type: Insight, Word



Spotify Netflix and Hulu lead Digital Media onto Facebook

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Report Summary:

Facebook has significantly deepened the level of integration digital media service providers can implement with the social network. The move will see users’ media discovery and consumption habits reflected in the social networking user experience more than ever before. Strategy Analytics believes that this is likely to have a positive impact across all service providers who deepen their integration with Facebook but particularly for online music and video providers. Traffic to video and music services is likely to spike sharply in the short term alongside the likelihood that conversion rates to paid service tiers will improve compared to standard online conversion rates because the social nature of recommendations generated tend to outperform algorithmically generated recommendations. Longer-term impacts are harder to gauge however usage levels of participating services are likely to increase hence user retention and ongoing spending are likely to improve. Integrating digital media services with Facebook will also increase the volume and variety of user consumption data generated on Facebook which is extremely valuable for the service providers, advertisers and for Facebook itself.

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