New endeavours to sustain Facebook’s growth: Analyst
- 27 September, 2011 08:38
Further design changes at Facebook are indicative of a a larger evolution taking place at the world’s largest social network, according to Ovum prinicipal analyst, Eden Zoller.
The changes include an updated News Feed as its centrepiece.
With Facebook planning to incorporate new features of distribution and quick transfer of multimedia files, it appears that Facebook wants to position itself as an entertainment hub.
“Facebook is a lot more than a social network and, ultimately, wants to be the premier platform on which people experience, organise and share digital entertainment.” Zoller said.”
“Facebook knows that ramping up on numbers alone – 800 million counting – is not enough to build a sustainable business in the long-term.”
Zoller expects this move will probably go down well with Facebooks users and, in turn, create new revenue opportunities for the social network around content distribution and advertising.
“The growing portfolio of music, video and news services it is offering are attractive to users and are a hook to keep them engaged with Facebook and for longer, which is good for advertisers that want to be where consumers spend most time,” he explained.
The new Timeline layout, which is a supposed to work as a digital scrapbook to highlight the important moments in your life and past Facebook activities, is also expected to contribute to users’ adoptions of the new services, as it will allow users to organise and share their content with friends as far back as they want to.
Zoller sees these types of innovations as being in line with Facebook’s aim of creating an immersive platform that will be the centre of people’s digital lives, and expects competitors to be continually wary of its expansion.
“Facebook is acting as a powerful gravitational force on the web for both consumers and media players, and this is a worrying prospect for rivals that are increasingly struggling to keep up,” he said.
Facebook recently linked up with Yahoo News to allow users of both sites to share with their Facebook friends the articles they have read on Yahoo.