Facebook’s streaming business that was once seen as competition for the likes of YouTube and Netflix is effectively dead now; Facebook no longer produces original series, and Facebook Watch is no longer available as a video-streaming app. Now a lawsuit has reportedly revealed how an ad partnership between Facebook and Netflix led to the killing of this division in the social networking giant. According to a report in Gizmodo, court filings unsealed in Meta’s antitrust lawsuit claim that Facebok almost put a plug on its streaming service Facebook Watch to protect the company’s advertising relationship with Netflix CEO Reed Hastings.
The streaming business’ demise has been linked to cost cutting at Facebook that started in November 2022 and also included job cuts.
Ask Netflix and Facebook CEOs to respond to subpoenas
The letter reportedly asks the court to have Reed Hastings, Netflix’s founder and former CEO, respond to a subpoena for documents that plaintiffs claim are relevant to the case. The letter reportedly alleges that Netflix’s relationship with Facebook was remarkably strong due to the former’s ad spend and the fact that Hastings sat on Facebook’s board. “It is no great mystery how this close partnership developed, and who was its steward: from 2011-2019, Netflix’s then-CEO Hastings sat on Facebook’s board and personally directed the companies’ relationship…,” said the filing made public.
In 2017, Facebook Watch began signing deals to populate its streaming service with original TV Shows from movie stars such as Bill Murray. A year later, the service attempted to license the popular ‘90s TV show Dawson’s Creek. Facebook Watch had meaningful reach on the home screen of the social media platform, and an impressive budget as well. Facebook and Netflix appeared ready to butt heads in the streaming world, and the Netflix cofounder found himself in the middle as a Facebook board member.
These unsealed court filings reportedly are a result of a class action antitrust case against Meta, first spotted on X by Jason Kint. The lawsuit is said to have been filed on behalf of consumers and advertisers and alleges that Meta is a monopoly in the social media market.
The streaming business’ demise has been linked to cost cutting at Facebook that started in November 2022 and also included job cuts.
Ask Netflix and Facebook CEOs to respond to subpoenas
The letter reportedly asks the court to have Reed Hastings, Netflix’s founder and former CEO, respond to a subpoena for documents that plaintiffs claim are relevant to the case. The letter reportedly alleges that Netflix’s relationship with Facebook was remarkably strong due to the former’s ad spend and the fact that Hastings sat on Facebook’s board. “It is no great mystery how this close partnership developed, and who was its steward: from 2011-2019, Netflix’s then-CEO Hastings sat on Facebook’s board and personally directed the companies’ relationship…,” said the filing made public.
In 2017, Facebook Watch began signing deals to populate its streaming service with original TV Shows from movie stars such as Bill Murray. A year later, the service attempted to license the popular ‘90s TV show Dawson’s Creek. Facebook Watch had meaningful reach on the home screen of the social media platform, and an impressive budget as well. Facebook and Netflix appeared ready to butt heads in the streaming world, and the Netflix cofounder found himself in the middle as a Facebook board member.
These unsealed court filings reportedly are a result of a class action antitrust case against Meta, first spotted on X by Jason Kint. The lawsuit is said to have been filed on behalf of consumers and advertisers and alleges that Meta is a monopoly in the social media market.
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