Checkmate Flipboard, Pulse, Feedly and the list goes on. Finally Social networking website Facebook has announced the launch of its online news aggregation tool “Paper“. Facebook Paper is launching on Feb 3, 2014 on iPhone as a standalone app and on other platforms soon.
The news aggregation market has been on the news since the retirement of Google Reader last year. Online news reading is not just a RSS aggregation now. Its more than that. The element of social news reading has gained importance. Flipboard, with its great design has acquired most of the Google reader users though faces challenge here. Although Flipboard has moved to a new business model with the users generated content than simple RSS feeds. Flipboard magazines are a way to interact users in content generation and the users can share their boards on social media with their friends and relatives. Facebook is capitalizing this opportunity with its own reader. Facebook paper users can create their own paper with their favorite news ans stories. News is not just news now. It’s a way of story telling. Create new stories with audio, video and images.
There are reports that young users are moving away from Facebook. Facebook which is celebrating its ten years of existence and the way they has changed how people interact is tremendous. From being a college based social network to a company which has issued IPO and has been on the news since then for all the wrong reasons. As they are celebrating 10 years, their major portion of revenue is from mobile devices. Facebook had total revenue of $2.59 billion in the quarter that ended Dec. 31, up from $1.59 billion in the same quarter a year ago. Revenue from advertising was $2.34 billion, up 76 percent from the previous year. Net income was $523 million, or 20 cents a share, in the quarter, compared with $64 million, or 3 cents a share, in the previous year’s fourth quarter. With the mobile ad revenues on the surge, its clear that the future focus is on mobile devices.
With the launch of paper, Facebook has been clear that their focus on mobile is not just for Facebook app ad revenues but the other quarters as well. As of now Paper is free from ads. They are depending on the sponsored stories. But lets wait and watch!
LinkedIn last year acquired news reading app Pulse and the game is on. With the launch of Facebook paper, it’s going to be cat and mouse race for the top place. Flipboard with its sleek and elegant design, pulse with LinkedIn integration and Facebook paper with the support of billions of Facebook users will be a space to watch out. Mobile is the future not just for social networks but for news reading as well! It’s a tiny world but the ultimate winner will be the one who provides the desired value to its customers.