Facebook Inc (NASDAQ:FB) might have landed its wish to get people to spend more time on the platform having reached an agreement with publishers for the posting of articles directly on the platform. During an interview with, Fox Business, AVG Technologies, Gary Kovacs, praised the idea but raised concern on Facebook trying to restrict people to one platform.
Short term, it might be a good idea but in the long term it might present some issues on people being tied down to one web page, affirms Kovacs. The social networking business is mostly driven by the ability of companies to get people to spend more time on a platform for the purpose of selling to them other products. One of the reasons Facebook moved to seal a deal with publishers.
“First of all I think it is good for users. It will have fast load times; it will be a destination resort. My other reaction is it is more reliant on one platform. We are going to leave inside the world of one company; we did that 20 years ago with AOL I don’t want to do it again,” said Mr. Kovacs
It is a win-win situation for both parties as readers will not have to leave Facebook Inc (NASDAQ:FB) just to read a link they might have clicked on. Publishers have also been assured that they will keep 100% of their ads revenue that originates inside their ‘Facebook instant articles.’
It is a big win for Facebook Inc (NASDAQ:FB) as it solidifies its position online as a go-to place for everything, a space that Google has dominated for years. The 1.4 billion active users on Facebook is one of the reasons why publishers agreed to the deal as they stand to generate more revenue from hosting ads, side by side their articles.
“Google Inc (NASDAQ:GOOGL) is a search partner; Facebook Inc (NASDAQ:FB) is a destination resort you can search right inside Facebook. I actually think it is good for the market, I think a competitive advertising landscape; you post that article you have an opportunity to share the profits with Facebook […],” said Mr. Kovacs.
Facebook now has on its hands and opportunity to beat Twitter Inc (NYSE:TWTR) on the aspect of sharing news something the latter still holds the upper hand. Should the partnership with publishers turn out well Facebook Inc (NASDAQ:FB) could turn out to be the best place to get information making it a de facto platform for all kind of information on the web.
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