On the heels of Facebook’s quarterly earnings release, I appeared on CNBC’s “Squawk Box” to discuss the company’s outlook as the platform evolves. Facebook is doing well, but they need to spend money to keep its users happy. When evaluating the company, we think about the capricious consumer and what’s keeping them engaged with any one channel, be it Facebook, Instagram, Twitter or the next time-waster that comes along.
To change our view of Facebook, we’d ultimately want to see a more edited product. When YouTube came out, it was the darling that was going to replace scripted TV. But here we are, not only getting away from cable, but we’re in the golden era of paying for scripted and edited content, which would ideally happen with Facebook. However, we don’t see it moving in that direction. We, the users of Facebook, are still the writers and I don’t know if that can go on forever.
Click the photo below to view the full segment: