Warner Bros. and Facebook Start Movie Rental Service


With over 600 million fans, should Netflix and Hulu be worried?


By: TECH STAFF  
Published: March 8th 2011
in Economics » World

Dark Knight on Facebook

Earlier today Warner Bros. has unveiled their new movie rental service through Facebook.

 

The first movie to receive this service is the Dark Knight. In order to watch the movie, users need to visit the Dark Knight Facebook Page, where they will have the option to watch the movie directly from Facebook, assuming they are from the U.S.

 

Rented movies cost 30 Facebook Credits, the equivalent of $3 USD, and can be watched within a 48 hour window. Facebook Credits are the official payment option of Facebook, which is used mostly in social games to purchase virtual goods.

 

Facebook Credits have been a massive success story for many companies using Facebook as a platform, such as Zynga, the maker of City Ville. Currently Facebook Credits can only be used to purchase virtual goods, for which they charge 30% transaction fee.

 

Companies have been clamoring for Facebook to allow the purchase of real world, e-commerce goods as well through Facebook Credits. Many companies have been opening storefronts for their companies within Facebook, but those involve the consumers having to finalize the purchase outside of Facebook. If they could keep the whole process within Facebook, they believe that the conversion rates could increase even further.

 

With over 600 million Facebook fans, should Hulu and Netflix be worried?

 

Let us know your thoughts in the comments below.



Related articles: (Warner Bros., Facebook, Dark Knight, )




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