At the Web 2.0 conference in San Francisco last week, Facebook CEO Mark Zuckerberg gave a six minute speech about how, starting sometime in the next five years, he expects his company to make billions and billions of dollars turning the TV, news, film, and music industries upside down.
The speech was nuanced and obviously pre-planned. It contained big revelations. But because it came in the middle of a wide-ranging, hour-long interview, hardly anybody noticed.
The gist: As has already happened in the gaming industry – where Zynga now has a larger market cap than Electronic Arts – Facebook expects insurgent entrepreneurs to “reform” the film, TV, news, e-commerce and music industries with the help of Facebook. Some of these companies will be incumbents. Some will unseat incumbents. Facebook will then – perhaps through credits or advertising, but also perhaps some other way – tax these companies in exchange for the value it has added.
Here’s how Zuckerberg put it:
“Anything that involves content or specific expertise in an area – games, music, movies, TV, news, anything in media, anything e-commerce, any of this stuff.
Over the next five years, those verticals are going to be completely re-thought. There are going to be some really good businesses built.
Our view is that we should play a role in helping to re-form and re-think all those industries, and we’ll get value proportional to what we put in. In gaming, we get some percentage of the value of those companies through ads and credits. But that’s all because we’re helping them.
If we’re helpful to other industries in building out what would be a good solution then there will be some way we get value from that. “
In the next few days, we’re going to publish a speculative story on how Facebook can “reform” those industries the way it has been able to funnel hundreds of millions of users into social gaming. We’ll be talking about some of these issues at our Ignition conference next week too. We’d love to hear your thoughts, too. Comment below or email us at [email protected]
In the meantime, we’ve embedded Zuckerberg’s speech here:
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