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Facebook Inc (FB) To Change The Way People Read News

We have seen this happen in the early days of the internet: giant portals like AOL, Inc. (NYSE:AOL) and Yahoo! Inc. (NASDAQ:YHOO) added a variety of features to get users to stay on their sites. So, this is not something new but due to the sheer size of its users base there are obvious benefits that Facebook Inc (NASDAQ:FB) can earn. As reported by The New York Times, Facebook Inc is all set to launch its news feed that will be featuring complete news stories for its 1.4 billion monthly users.Dan Costa, Editor in Chief of PCMag, was on CNBC to discuss the impact of Facebook Inc’s news feed on other publishers.

Facebook Inc (FB), FB, NASDAQ:FB

The New York Times has reported that Facebook Inc has almost finalized the deal for hosting news contents for the New York Times itself, BuzzFeed and National Geographic. The report adds that Facebook Inc is in talks with at least half dozen such publishers.

“What Facebook wants to do is – right now publishers place links on Facebook in hopes to getting people to come back to their website to read that story. Facebook is saying:  that takes too long especially in a mobile environment. Why don’t you just host your entire story on Facebook itself and that way more people will read your story? So, it actually could improve the reader experience – it’s definitely good for Facebook – for publishers, I think, the case is a little bit more complicated,” Costa said.

As of now, Facebook Inc has not disclosed whether it would be ready to share their revenue with the publishers. It might allow publishers to post their advertisement around these Facebook Inc news stories. According to Costa this deal is perhaps not be that bad for the publishers as Facebook Inc will make their content available to a larger audience.

“The important thing to remember is that Facebook is an incredibly important traffic source for publishers. Behind Google Search, Facebook is probably the number two referrer for most publishers, so, it’s hugely important to our businesses. So you have to do business with them, you have to work them in some way,” Costa said.

After introducing its online payment system for Facebook Inc’s messenger users in the U.S. this is another big leap that Facebook Inc is taking in its efforts to get users to keep using Facebook all day long. According to Costa publishers will be tempted to do it because they really need access to that larger audience and he is thinks it cannot be bad for publishers as Facebook Inc (NASDAQ:FB) will have plans to give monetization option in terms of advertising revenue and in terms of the data that publishers can collect from Facebook Inc about the readers.

Some publishers might not want Facebook Inc (NASDAQ:FB) to host their news stories because they always prefer users to visit their own websites for reading complete news but due to how far Facebook Inc’s subscribers’ base expands it might be a blessing in disguise for them.

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