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Facebook The Media Company If It Looks Like A Duck

Mark Mulligan
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Facebook beat financial analyst estimates with its            2016 earnings but announced that ad revenues would likely slow in 2017, due to the digital ad market feeling the pinch of advertiser budgets, which are lagging behind the shift in user behaviour. Facebook’s stock fell by            but Plan B is already in motion: to become a media company. Facebook delayed this move as long as it possibly could, showing little enthusiasm for getting bogged down with content licences while it was able to drive audience growth and engagement by piggybacking on other people’s content. That strategy has run its course. Facebook is now about to start looking and behaving much more like a media company, but in doing so it will rewrite the rulebook on what a media company is.

Companies and services mentioned in this report: Alphabet, Amazon, Apple, Facebook, Instagram, Messenger, Musical.ly, Pandora, Spotify, WhatsApp, YouTube.