Facebook Watch, the video service launched by Facebook in 2017 as a competitor to YouTube, is shutting down. This move comes as Facebook shifts its focus more towards Reels and short-form video content. While the shutdown of Watch may disappoint some users, it likely won’t come as a huge surprise given Facebook’s struggles to gain traction with the service.
What is Facebook Watch?
Facebook Watch was launched in 2017 as a dedicated home for video content within Facebook. It offered a space for watching full episodes, live streams, and other video content from official creators and publishers. Facebook spent over $1 billion developing original shows for Watch in an attempt to draw users to the service.
Some of the key features of Facebook Watch included:
- A dedicated Watch tab and homepage for finding videos to watch
- Original shows produced exclusively for Facebook Watch
- Ad breaks for monetization
- Tools for creators to build an audience and earn money
Facebook pitched Watch as a competitor to YouTube, hoping it could become a destination for premium video content and encourage people to spend more time on Facebook consuming video. However, Watch struggled to build a sizable audience and never posed a true threat to YouTube’s dominance.
Why did Facebook launch Watch?
There were a few key reasons why Facebook launched Watch:
- Compete with YouTube – Facebook wanted a piece of the video advertising revenue that Google was dominating with YouTube.
- Attract younger users – Younger audiences were drifting towards platforms like Snapchat and YouTube for video, and Facebook wanted to draw them back.
- Monetize video content – Facebook saw an opportunity to share revenue with creators and publishers by monetizing their video content.
- Increase user engagement – More video content could potentially increase the time spent by users on Facebook.
With its massive user base, Facebook was betting it could compete head-to-head with YouTube if it could just get people watching videos directly within the Facebook app. However, those efforts never truly caught on.
Why did Facebook Watch fail to gain traction?
There are several reasons why Facebook Watch did not become as popular as Facebook hoped:
No clear value proposition
Facebook did not clearly communicate what need Watch was meant to serve or why users should watch video there rather than on YouTube or Netflix. There was confusion around who Watch was really meant for and why people would want to use it.
Content strategy issues
Facebook poured over $1 billion into developing original shows for Watch, but very few broke out as mainstream hits. The expensive show investments failed to generate much interest or buzz. Overall, Facebook struggled with its content programming strategy and couldn’t give people compelling reasons to tune into Watch.
Creator tools lacked features
The creator tools Facebook made available were limited compared to what platforms like YouTube offered. There weren’t enough options for creators to build out their presence and monetize their videos through Watch.
Watch tab was buried
The dedicated Watch tab was tucked away from the main navigation options within Facebook. It wasn’t prominently featured or easy to discover, making it hard for people to find the content.
Belief people didn’t want another platform
Industry observers believe a big part of the problem was that people simply didn’t want yet another video platform to check. Most were content with YouTube and didn’t feel the need for Facebook Watch.
How popular was Facebook Watch?
While Facebook has not released detailed user numbers for Watch, it’s clear the service never came close to matching YouTube’s scale or popularity. Here are some estimates on Facebook Watch adoption:
Monthly active users
| Year | Monthly Active Users |
|---|---|
| 2018 | 400 million |
| 2019 | 720 million |
| 2020 | 1.25 billion |
As the table shows, Facebook Watch usage grew from 2018 to 2020, but only reached about 1.25 billion monthly active users last year. For comparison, YouTube has over 2 billion monthly logged-in users. So Watch never came close to matching YouTube’s reach.
Video views
One analysis from the social media analytics company Tubular Labs estimated that Facebook Watch only generated about 1.3% of the total time spent watching videos on Facebook as of December 2021. So it was capturing a very small slice of the overall video viewing happening across Facebook.
Original show performance
Facebook’s strategy of using expensive original shows to try driving Watch adoption does not appear to have paid off. One report stated that only five of the roughly 60 original shows launched had more than 10 million viewers per episode as of 2020. So Facebook failed to generate must-see original hits to attract large viewership numbers.
Overall, the available data indicates Watch never exceeded low single-digit market share of online video viewing. It did not come close to seriously competing with video platforms like YouTube in terms of attracting viewers at scale.
How does the shutdown of Watch impact Facebook?
While the shutdown of Watch does represent a failure in Facebook’s video ambitions, the overall business impact is likely limited given Watch’s lack of adoption. Here are some of the ways Facebook will be impacted:
Wasted investment
Facebook will have to write off its multi-billion dollar investment in developing original shows and trying to promote Watch as a destination for premium video. This will be seen as wasted spending given that Watch failed to take off.
Reputational damage
The demise of Watch may be emblematic of Facebook’s declining popularity and inability to launch successful new products. This could further damage Facebook’s reputation in the tech/social media industry.
Loss of potential ad revenue
Facebook won’t be able to monetize Watch through video ads and will lose out on that potential revenue stream. However, since Watch usage was low, these lost ad dollars will be minimal.
Employee morale impact
The teams who built Watch and developed original shows are likely disappointed to see it shut down. This could dampen morale and enthusiasm among some Facebook employees.
Overall though, Watch was not a material enough part of Facebook’s business for the shutdown to be that significant from a financial perspective. It hurts more as a symbolic failure.
What does this mean for video on Facebook going forward?
Looking ahead, Facebook seems to be shifting its video strategy in a few key ways:
Emphasis on Reels
Facebook is prioritizing its TikTok competitor Reels as its main short-form video product. Usage and engagement with Reels has been growing steadily, so Facebook is devoting more resources to that format.
Support for creators
Facebook will continue investing in creator-focused video products like Live and in-stream ads so that video publishers can still monetize their content. Keeping creators happy remains important.
Openness to partnerships
Without a direct YouTube competitor, Facebook may look to partner with other video platforms rather than always trying to build standalone products. For example, Facebook recently added YouTube integration to its main app.
Focus on community
Facebook realizes video works best when centered around specific communities and creators. So it may emphasize video more as a feature within Groups, Events and other community products rather than as a standalone destination.
Overall, Facebook seems to have acknowledged that a wholesale YouTube competitor like Watch isn’t viable or necessary. It will instead incorporate video features into its broader app experience.
Conclusion
The shutdown of Facebook Watch marks the end of the company’s ambitions to be a hub for premium original video content. Lack of adoption showed people didn’t need or want yet another major video platform beyond the likes of YouTube and Netflix. For Facebook, it will go down as a costly misstep but not one that significantly alters the future of the company given Watch’s limited role. Facebook will aim to incorporate video features into its broader app without trying to be a one-stop video destination. While the tech giant failed in its quest to build a YouTube killer, its refocused video strategy could still succeed.