“[Facebook video] hasn’t been beneficial,” said Neil Katz, global head of content and engagement at The Weather Channel, during a speech at the Digiday Video Summit in Scottsdale, Arizona. “It has been good for Facebook, but it hasn’t been good for us.”
“We went along for the ride every single step of the way,” Katz said. “But we noticed, over the course of two years, that we were being paid in all types of currencies — followers, shares, views — that did not feel like money.”
The Weather Channel was part of Facebook’s funding program for live and on-demand news feed videos and also produced three shows for Facebook Watch last fall. The Weather Channel’s deal to produce live and on-demand news feed videos for Facebook, for which Katz said it received a seven-figure fee, shined a light on how difficult it is to make money on Facebook. Paid to produce a predetermined number of minutes per month, The Weather Channel found it was only making $28 per minute of video produced. For comparison, Katz pointed out how the CBS reality show “Survivor” cost $45,000 per minute to make in 2009.
Not surprised. Facebook is a one-sided business. It’s closed-off, full of trolls, your mom and dad, an echo-chamber of bad ideas, and where content goes to die. While IBM clearly isn’t as brash as Elon Musk it leaves me wondering, “how much longer until Facebook has a user-exodus crisis on its hands?”