Movies can be watched live on Facebook with new program

Warner Bros. announced today that it would stream movies through Facebook. The Facebook Movies system currently offers just a few videos, but the company has plans for expansion. Netflix stocks fell three percent when the service went live.

Warner Bros. leasing through Facebook

A brand new feature is accessible for Warner Bros. It’s on a Facebook page. Users can now digitally rent movies and stream them directly in Facebook. Only a few movies, including "The Dark Knight," are available right now. A 48 hour film rental costs 30 Facebook credits. About $3 can be paid for that. This choice is only available on a test basis to about 30 percent of United States Facebook users.

Netflix stock drops on Facebook Movies information

The news of Facebook Movies has already had an impact on the online rental business. In the first hour after the announcement was made, there was a 3 percent decrease in Netflix shares. About 20 percent of traffic on the internet involves Netflix. There was a report done in December 2010. It found that Facebook was responsible for about 10 percent of video-sharing traffic online. When you combine the traffic of Facebook with in-line video sharing, Netflix could be facing its first real competition — depending on the content that is eventually made accessible.

What Facebook Credits are

Facebook Movies are the first major non-game application to make use of Facebook’s soon-to-be-required payment system. Facebook Credits currently cost $1 for 10 Facebook Credits. There is no assurance, however, that Facebook Credits will remain a monetary program tied exclusively to the value of the dollar. Facebook is able to increase income by changing the conversion rate very simply with its own monetary system. Facebook would end up getting 1.1 cents per credit purchased if the rate were to change to nine Facebook credits per dollar instead. A huge payday may go to Facebook with this small increase even though it doesn't seem like much.

Citations

Tech Crunch

techcrunch.com/2010/12/23/facebook-second-largest-source-videos/

Slate

slate.com/id/2273314/

Forbes

blogs.forbes.com/parmyolson/2011/03/08/now-you-can-rent-and-stream-movies-on-facebook/?partner=yahootix

Bloomberg

bloomberg.com/news/2011-03-08/netflix-falls-as-warner-bros-starts-offering-movies-on-facebook.html