Warner Bros. has officially announced they're trying something new. Films in their library could be offered for electronic digital rental through Facebook. The Facebook Movies system currently provides just a couple videos, however the business has plans for expansion. Upon announcement of Facebook Movies, Netflix stocks fell. Resource for this article - Facebook Movies streams films directly with Facebook Credits by MoneyBlogNewz.
Warner Bros. renting by means of Facebook
There's a new Warner Bros. Facebook page features accessible. On Facebook, users can rent movies and stream them. This choice is currently available for just a few movies, including "The Dark Knight." About $3 is what is paid for a 48 hour rental with 30 Facebook credits. This choice is only available on a test basis to about 30 percent of U.S. Facebook users.
Stock from Netflix drops with information
The Facebook Movies news has not been good for everyone. In fact, the online rental business has surely not benefited from it. Shares went down three percent for Netflix after the announcement. This was just in the first hour though. About 20 percent of traffic on the internet involves Netflix. In December of 2010, a report found that Facebook accounted for almost 10 percent of online traffic to video-sharing websites. When you combine the traffic of Facebook with in-line video sharing, Netflix could be facing its first real competition -- depending on the content that is eventually made available.
Required Facebook Credits looked at
Facebook Movies are the first major non-game application to make use of Facebook's soon-to-be-required payment system. The ratio for Facebook credits is 1 to 10. That indicates 10 Facebook credits are given for every $1 paid. The value of the dollar is probably not what Facebook Credits stays completely tied to though. By creating its own monetary system, Facebook is creating the flexibility to increase income simply by adjusting its own conversion rate. If Facebook were to change the rate, for example, to nine Facebook credits per dollar, the business would increase its revenue by 1.1 cents per credit purchased. It may seem small, but multiplied by billions of credits purchased, it adds up to a significant payday for the business.