Hey labelers, today we’ll be talking all about one of the four big tech giants; Facebook. If you hadn’t heard, the CEOs of Google, Amazon, Apple, and Facebook were all part of a five-hour hearing at the House of Judiciary Committee in the US. Why you ask? The House of Judiciary Committee wanted to see whether or not the tech companies have been operating in a fair manner. Based on how the hearings go, the rulings could result in new regulations that could restrict or reduce the dominant power of each company.
All companies were faced with difficult questions from the House Judiciary Committee. Facebook CEO, Mark Zuckerberg was questioned about Facebook’s purchase of Instagram. According to these documents, their acquisition was somewhat intended to ‘neutralize’ a competitor.
This question, along with many more, all lead to support the main case that these corporations, like Facebook, are now able to overpower their competition due to their large size and therefore stifle their competition.
Not convinced yet? Remember when Snapchat was the only platform with the “stories” feature? Seems like so long ago, right? Well, let’s dive into that and some other examples of how Facebook is attempting to shut out its competitors.
Reels is our most recent example of how Facebook has created similar functionalities to other apps, in this case, TikTok. Trump issued an executive order that will ban TikTok if it’s not purchased by a US company by September.
Seeing their opportunity, Facebook released their feature Reels on Instagram into the US.x If you couldn’t assume by now, Reels is a new feature on Instagram where users can create short 15 second videos using features like adding text, fun editing tools, and music, just like TikTok. Facebook has even taken the extra step in offering deals to prominent TikTok creators to get them to create and share their content on Reels instead. Wow, right?
TikTok’s new CEO Kevin Mayer issued a public statement where he takes an aggressive stance in facing competitors, like Facebook, who are wanting to shut the app down. In his public statement, he challenges competitors and states:
We also saw this back in 2012 when Facebook offered Snapchat a $3 billion offer to take over the app, which Snapchat CEO Evan Spiegel refused. This is when Zuckerberg, according to Spiegel, seemed to have a different approach to his demeanor towards Snapchat. With the introduction of Instagram Stories, Zuckerberg accomplished his goal of restricting Snapchat’s expansion.
Facebook Launching Licensed Music Videos
Facebook announced that it will be rolling out official music videos across its platform in the U.S. This will allow Facebook users to watch, share and discover music videos from a variety of artists including Blake Shelton, Diplo, Elton John, and more. The launch is implemented by Facebook’s partnerships with top labels including Sony Music, Universal Music Group, and more. Sound familiar? Because it is.
This launch of music videos is seen as a competitor to YouTube, who reportedly paid out more than $3 billion to the music industry in 2019. The music labels who feel like they don’t get paid enough are looking for alternatives, which is where Facebook comes-although, the financial terms of Facebook’s deal with the labels were not disclosed.
Now that Facebook has the licensing rights with these major labels, artists are able to share full-length music videos rather than only sharing a small clip. This change can really impact not only how much time a user spends on Facebook but also the videos are also another way for the artist to connect with their fans. In addition to this new feature, Facebook has also rolled out tools that allow artists to promote new releases:
- Host live-streamed Q&A on Facebook Live
- Raise money for important causes through the donate button.
With those features alone, you literally would never have to leave the app!!
So with all this being said, do you think Facebook is attempting to take over the market by copying its competitors? Or is adding new features just the name of the social media game? Let us know in the comments below!
For more guidance on all things branding, PR, and marketing, email us at firstname.lastname@example.org!