Twitter (NYSE: TWTR) has recently become much more than the 140-character social messaging platform. Last year acquired video platform Periscope is now the main source of attention. Twitter’s deal with the NFL to live stream Thursday Night Games through the Periscope app underlines the companies ambition. But Twitter isn’t the only one aggressively moving in the area of live streaming video. Facebook (NASDAQ: FB) wants to grab this market as well. Founder and CEO Mark Zuckerberg thinks “we’re entering a new golden age of video” and in February Facebook decided to put a lot of additional efforts in Facebook Live to make it a huge success. The big question: how can social media platforms monetize live video and gives it investors a reason to add exposure in Twitter and/or Facebook?
Live video costs money
Twitter’s Periscope deal with NFL is by industry watchers seen as huge. Not just since the deal enables mobile audiences to watch NFL anywhere, but the deal also may attract (male) millennials. This group is hard to target and the online chatter during primetime may be very attractive for Twitter’s advertisers. However, for now the deal comes with a big price tag: $10 million for the package, or $ 1 million per unexclusively broadcasted game. Although NFL said that Twitter wasn’t the highest bidder, Facebook is rumored to have backed out due to the price tag. One the other hand, NFL preferred Twitter as result of its size and scale, where there are doubts that Facebook is able to convert enough viewers.