Newly released court filings in Mark Zuckerberg’s antitrust lawsuit against Meta reveal that Facebook’s short-lived streaming service Watch was allegedly shut down to protect its advertising deal with Netflix. . The heartwarming agreement between the two Silicon Valley giants also includes giving the streaming platform access to Facebook analytics and even private user messages.
gizmodo report Facebook’s short-lived streaming service Watch showed great potential when it launched in 2017, inking a deal to produce original TV shows featuring movie stars like Bill Murray and a series of ’90s TV shows. It is said that the company was trying to license popular content such as. dawson’s creek. However, recently released court filings reveal that the service was allegedly knee-capped just two years later to protect advertising deals with Facebook and Netflix.
Reed Hastings panel during Netflix’s “See What’s Next” event (Photo by Ernesto S. Ruscio/Getty Images for Netflix)
Mark Zuckerberg surrounded by security guards (Chip Somodevilla /Getty)
Plaintiffs in the antitrust lawsuit against Meta say Netflix and Facebook have been together for nearly a decade, with the support of Netflix’s then-CEO Reed Hastings, who served on Facebook’s board from 2011 to 2019. They claim that they have enjoyed a special relationship over the years. Netflix is said to have been given privileged rights during this period. In exchange for hundreds of millions of dollars in advertising deals, it provided access to Facebook users’ private message inboxes and other analytical tools, giving Facebook greater control over its key advertising sector.
When asked about potential competition between Facebook Watch and Netflix at the 2017 Recode conference, Hastings downplayed the issue, saying, “We’re not bidding on the same programming.” But then he emailed Mark Zuckerberg: In hindsight, I wish I had added an importance modifier such as “I don’t typically bid on the same content.” ”
In May 2018, just two years after Watch’s launch, Zuckerberg personally emailed Fiji Simo, head of Facebook Watch, informing him that the budget would be cut by $750 million. I told you. The sudden change in direction meant Facebook was dismantling the streaming business it had spent the past two years growing. At the same time, Netflix is said to have increased its advertising spending to Facebook to about $150 million a year and signed a deal to enhance its data analysis.
The plaintiffs claim that because Netflix was a big advertiser on Facebook, Mr. Zuckerberg shut down the promising Watch platform in order to grow his advertising business. The class action antitrust suit, filed on behalf of consumers and advertisers, alleges that Meta has a monopoly in the social media market.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
