As it is known Meta stock had an issue with ads in 2015. The company, which was then only Facebook, was struggling with the deceleration of ad pricing growth, due to the lack of necessary data to teach its machine to recommend and provide users with customized content.
Agaisnt such a background, meta in 2017 introduced the inhouse streaming platform known as face book watch.
It declared intentions to invest over $1 billion on the vertical, making big bets for original programming featuring Elizabeth Olsen, Bill Burry and Catherine Zeta-Jones – to name but a few -, while licensing high-quality contents with the objective of becoming an exclusive TV player.
According to Meta stock, the service could become a treasure trove of user data they could profit from through ads.
Late last year, Meta stock essentially closed down its first-party programming vertical for the streaming platform. A proposed class action complaint was filed in Illinois federal court on Monday and claims that the company has violated antitrust laws by partnering with major record labels to basically abandon the service.
Says the Hindenburg Research report, which alleges that this was done to cede the video-streaming market to Netflix by kneecapping Facebook Watch. However, META received customer data and ad spend from Netflix, according to the lawsuit.
In response to these allegations, Meta stock came out to dismiss them entirely. A company representative said, “This suit is frivolous and there is no information of such an agreement being in place.”
Meta and Netflix had a close relationship for nearly a decade; At the time, Netflix’s chief executive, Reed Hastings, served on Facebook’s board.
Netflix spent tens of hundreds of millions of dollars on Meta ads that were tied to exclusivity deals meant to boost the company’s targeting and ranking algorithms whereas offering data transparency into Meta stock social app in return gave Netflix access to the app’s users’ messages.
This partnership was in danger due to Meta’s streaming activities. At the industry conference in 2017, Hastings mentioned the competition in the long future. “And still there is not a big conflict yet,” he added.
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