Facebook CEO: ‘We will be taking over the world’s sports channels’
Facebook CEO Mark Zuckerberg has said that the company will be the dominant force in sports broadcasting, following its acquisition of Sky Sports, a move which has seen its viewership increase.
Speaking to CNNMoney in an interview ahead of the launch of the social network’s sports channel, Facebook’s head of digital content Mark Thompson said that he is confident that the network will become the dominant provider of live sports content.
“We’re going to be the leader in sports programming,” he said.
“The reason is that our business model is that we are going to take over the sports business, the sports channels.”
Our business model has been that you buy a sports channel and you take your business model and you monetise that channel.
“You monetise it in ways that make it more valuable to you, and more relevant to the consumer.”
Mr Thompson said the network’s launch would mark a major milestone in the company’s ambitions to become the “go-to destination” for sports fans, as the company seeks to broaden its reach across more social platforms and to build a broader base of users.
“I think we have a lot of potential,” he told CNNMoney.
“There are a lot more people out there who are interested in sports and they are interested and they’re excited about what’s happening with sports in this country.”
When you start a new company, you want to have the best platform to deliver that to your audience.
“It’s very important that we can continue to deliver the value and the service that we’re capable of delivering to our audience, and to our advertisers, to the advertisers who support us.”‘
Facebook’s business model will be to make a platform that people are going out and buying content from’In addition to its broadcast rights deal with Sky, the deal also sees Facebook acquire Sky Sports US, which owns the rights to live football, cricket and rugby league.
“So we’ve got some incredible rights that we’ve developed that we plan to leverage to grow our content business,” Mr Thompson said.
“So it’s going to start to be a very lucrative business for us.”
For the last two years we’ve been looking at different business models.
One was the subscription model, where we buy a TV channel.
And the other was the business model where we pay for the content that we get.
“Mr Zuckerberg said that while the content business model was “the right business model”, he believed the sports channel was a different business model.”
What we saw was that the content revenue for a TV network is lower than the revenue that a sports network generates,” he explained.”
And we’ve seen in sports over the last three years that’s changed a lot.
“Now, when you look at the value of the sports revenue that is generated in the US, it’s lower than anywhere else in the world.”
People who watch a sports game can go and watch a football match, they can watch a cricket match, or they can go watch a tennis match.
So what we think is the right business approach is to do something different.
“That’s what we’re looking at now.
It’s going into a very exciting, exciting world where sports is very important.”
In sports, it is the way that you engage with the audience that matters the most.
“The deal was completed by a $3.4 billion offer made by Sky to Facebook in October 2017.