Taking the "L" = Taking the Loss
Facebook has been trying to break into the
video streaming/video conferencing business for a while. Now it's looking to add hardware.
Attach the camera to a roving device, like a robot, and you can call it
telepresence – however that's unlikely to happen. The reason is that "Oculus Founder"
recently left facebook. He was the one person that might have been able to pull this off. (This might have been the reason he left, one day we will find out.)
To be clear, the market does not have a "proffitable business model" for either – video streaming, video conferencing, or telepresence. Certainly, if AT&T could not after 50+ years — with a dominant market position — what chances does Facebook have.
For clarity, let me also add - AT&T is now just a "brand-name", as it was
purchased lock, stock and barrel by SBC in 2005 (with the
merger finalized on November 18, 2005.)
Motely Fool
writes
Facebook's take on the streaming box would include some of the same hardware features that define the company's Portal products -- namely, a camera and videoconferencing technology.
(...)
Facebook's reported move into the OTT streaming hardware market is unusual in part because it builds on a facet of Facebook's business that may not be doing all that well. Facebook hasn't released sales figures for Portal yet, but retailers have been offering steep discounts on the entry-level device's original $199 MSRP. Released in October of 2018, the entry-level Portal was available for 50% off by April of 2019.
This is just one tell, that they can NOT market, sell, or productize to make it worth rice & beans. This is because of the
vassal nature of the Facebook product.
The other tells are spelled out by another Motley Fool
article Reasons Facebook's (Video) Portal Is Doomed
In the article, there are two reasons for the
- People have trust issues with Facebook
- There are better Alexa devices
This second reason is the biggest reason. Companies like Microsoft, Alphabet (Google), Facebook, Twitter, Netflix are great at profit, when they can change sofware overnight, and Facebook has been the most adapt of all the software giants. However, hardware is
Capital Intensive and requires long term
Discipline — something Silicon Valley has not been able to do for decades.
SOURCES
Is There a Place for Facebook in This Market?
The social media giant is reportedly planning an internet-based video player as part of its line of Portal products.
https://www.fool.com/investing/2019/08/21/is-there-a-place-for-facebook-in-this-market.aspx
Stephen Lovely - Aug 21, 2019 at 6:41AM
Reasons Facebook's Portal Is Doomed
Does the social networking giant really think users are ready to put a Facebook camera in their homes?
https://www.fool.com/investing/2018/10/09/2-reasons-facebooks-portal-is-doomed.aspx
Evan Niu, CFA - Oct 9, 2018 at 8:02PM
History of AT&T
https://en.wikipedia.org/wiki/History_of_AT%26T#2000%E2%80%932005:_One_national_brand,_and_acquisition_of_AT&T_Corporation
Vassal
https://en.wikipedia.org/wiki/Vassal
