Facebook is launching a dedicated live-streaming app for gamers
Published by Terence Mahier | Source

Facebook is launching today a dedicated app for people to create and watch live gameplay πŸ•Ή

This push into the gaming industry comes at a time of a huge boom in video game broadcasts thanks to the coronavirus lockdowns 🏠

Facebook lags behind Twitch and YouTube when it comes to live-streaming with 500M hours of viewing time over the past 3 months compared to 3.1B for Twitch.
However, the company says over 700M of its users already interact with gaming content on the main FB app, hoping to quickly gain considerable traction for its new gaming app πŸ“±

At a time of declining ad revenues, will the market praise the strategic move?

Extra Insights

For now, Facebook isn’t including ads in the Gaming app and monetization is pretty limited. It does, however, let people earn money with so-called β€œstars” which let fans make one-time payments. The company says it will explore more monetization options over time πŸ€”

Facebook is down 13% this year after warning investors that, even though the number of active users increased during the pandemic, ad revenues are shrinking due to cuts in Marketing spending from advertisers πŸ’Έ

What Happened on the market eventually?

The announcement of a new strategic move into gaming by Facebook did not yield much enthousiasm. In these times of high uncertainty and bear market, investors seem to need factual results before cheering up. If you believe the move will yield results, hold your trade until Facebook makes an announcement on the number of downloads of the app for instance.

But pay attention, many other events can hit the stock until then...

- Newspill Team πŸ’Š
21-Apr 08:47 (Eastern Time)

Every weekday, we send to our community a summary of the most impactful Business/Financial news of the day - the "Daily Dose".