The company has chosen to provide its metaverse and creator ecosystem with more funds by reallocating its resources to places where it feels need them the most. And if that means stripping out investments made to Facebook’s news bulletins, then so be it.
Meta revealed how it has plenty of plans for its metaverse future and that’s why such decisions are important to make at the right time which it believes is now.
The news comes to us by a report from the Wall Street Journal which highlighted a recent internal note made by a leading Meta executive. According to him, the resources are getting reallocating directly through the News Bulletins and News Tabs on Facebook.
Hence, engineering and support systems are being removed from such products and reallocated towards strengthening the company’s creator economy.
For now, we’re not quite clear about what the exact projects delineated for its Creator Economy could be. But the sudden developments are not being taken too well by many publishers who have continued to struggle with Meta’s sudden decision-making.
Many publishers feel the company quite often tends to lose interest in so many projects, even if it's overnight. And as you can probably imagine, such shifts aren’t appreciated when you’re a publisher.
A great example of such behavior is a case study that we saw in the past. Facebook informed its publishers that it wished to see more video content on the app and hence told brands to post more so that consumption patterns could change.
But that’s when all of a sudden, things went downhill when the platform opted to change its algorithm. At one point in time, we were dealing with 12 million subscribers but soon enough, 75% of all organic traffic had been lost.
This way, so many publishers lost out as Facebook was forced to lay off hundreds of employees too. Hence, as you can see, Meta is quite unpredictable and you just never really know what sorts of games it can end up playing.
For now, it appears that Meta is focusing more on short-form videos that are trending on the web. You’ll find Reels on Instagram short form videos on TikTok, and YouTube Shorts garnering the greatest profits too.
One of Meta’s leading executives also mentioned in his memo how the content format that Meta is following right now is short-form videos and other projects that come aligned with its metaverse model.
This means we’re going to see so many other projects of Meta lose out, especially in cases where it plans on allocating resources elsewhere by stripping others from the benefit. Let’s not forget how it needs to harness back major losses made from ad spending.
There is plenty of talk about Meta’s Bulletin suffering, a media project that the firm launched in April 2022. Here is where so many writers along with publishers united to produce the most exclusive deals related to content for its platform.
But Meta has failed to record much value in terms of engagements from the platform, despite countless publications making their way. In addition to that, we saw the firm funding nearly 25 different journalists related to producing local news stories. But even then, nothing worked.
Next in line comes Facebook’s News Bulletin and News Tab. So many millions have been invested to allow publishers to produce content but Meta feels the output received is just not cutting it and it would like to scale back on such investments.
Thankfully, a lot of the deals are expiring soon with publishers so Meta might be taking the exit door soon.
Read next: URL Stripping Might Not Stop Facebook From Tracking You Anymore, Here’s Why
by Dr. Hura Anwar via Digital Information World
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