Advanced trading education is essential to help you make mature investment decisions. It often requires following the path of stocks in a deeper manner. Strategic decisions made by companies can often seem uninspired, but an in-depth look at their plans could sometimes reveal a winning factor that could open up a goldmine of earnings, even by exploiting a lucrative and unexplored niche in a crowded segment.

The video streaming market is quite a lucrative one. Global statistics by Statista reveal that the video streaming segment is worth US$ 12, 527 million in 2017. In 2022, the market value of this segment is expected to be in the region of US$ 18,653m with an annual growth rate of 8.3% from 2017 to 2022. User penetration is expected to touch 7.8% by 2022 from the current 4.8%.

Facebook Videos

Now social media giant Facebook ($FB) is entering this arena too. Jefferies analyst Brent Thill, contrary to the general scepticism regarding Facebook's move, believes that Facebook Videos will help the social media giant to earn $12 billion by the year 2022, in a Barron's article quoted by Investopedia. Thill believes that the social media giant's video efforts will enhance users' engagement levels and attract more advertising income. Thill particularly refers to the Watch Tab, in which Facebook has its videos and which has already been tipped to eventually overtake YouTube. He believes that by 2019 this could grow to a $1 billion business, and by 2022 a $12 billion business, making up 12% of Facebook's revenue. Thill has set a $225 price target for Facebook and considers it a good buy.

If you remember, Facebook launched Watch earlier in 2017, committing to make an investment of $1 billion annually on original video programming. It is a highly competitive but lucrative arena currently dominated by Netflix ($NFLX) and Amazon ($AMZN).

Facebook's Window of Opportunity

But Facebook's Watch is different to Netflix, Amazon or Disney ($DIS), all of which spend a lot more than Facebook does on Watch. Facebook's video platform will focus on short-form content by smaller production teams with lesser budgets to work with. The videos will depict shareable experiences involving communities, life experiences, sports, etc. That could be the winning proposition. There is no point in taking on Netflix, Amazon, YouTube ($GOOG, $GOOGL) and Disney who have established themselves in this space with massive investment. The content spend space is crowded and tight with the conventional players keeping on growing their expenditure for creating proprietary, scripted content. Thill believes Facebook has found that window of opportunity.

With this video effort, Facebook can also earn more from advertising. With the tons of data it has acquired regarding user habits, Facebook can tailor and channel content to users based on their interests. That helps target ads better too. The social media giant has also signed revenue sharing agreements with publishers for getting short video content.

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