When it comes to technology companies, they are constantly developing new services and offerings in an effort to retain and grow their users. At the same time, they are also looking at their competition to see ways that they can improve their own platforms to further increase their user base.
The reason for this is software companies derive a majority of their value from their daily active users. By gathering a base and then monetizing them through advertisements, companies like Facebook make millions of dollars a day.
Recent data shows that Facebook lost several million active users in the U.S. over the last year, which has them searching for ways to retain and continue to grow their audience. They are currently considering the expansion of their video entertainment offering, eying YouTube as a rival.
They are currently considering paving the way for more long format content, wherein the creators would earn a percentage of the advertisements sold against it. This mirrors exactly how YouTube currently pays their creators.
Is more video content what users want to see on Facebook? Or perhaps is it simply less advertisements?