On Thursday, Facebook, Inc. (NASDAQ: FB) launched their Watch video service to U.S. users that will allow people to submit shows in hopes to increase advertising revenue. Now, many advertisers are shifting their budgets from television to online as viewers have moved to watching shows on smartphones and tablets. Americans spend more than 73 minutes a day watching digital video which is more than 7% from last year. Television watching has fallen 2% from last year to 244 minutes a day and is expected to continue to fall.
Through this new feature, users can watch hundreds of shows ranging from Buzzfeed, Discovery Communications, A&E Networks, as well as live sports such as Major League Baseball.
Facebook is paying $10,000-$35,000 for shorter length shows and $250,000 for longer ones. The company is planning to eventually open the platform to any user to submit shows for approval and share 55% of ad revenue. This new platform allows users to select a wide variety of shows while sharing thoughts to friends as the video is being watched.