Warner Bros to offer movies through Facebook

SAN FRANCISCO: Warner Bros is making some of his films available on Facebook, by opening a new revenue stream for online social networks and signaling a new competition for online entertainment companies.
Consumers can pay for movies with the credits, virtual currency is still used primarily in the social games on the site, according to Warner Bros, Unit Time Warner Inc, on Tuesday.
Facebook, which earns money mainly through Internet advertising occupies 30 percent of revenues from third parties on the site with credits.
Services will initially be available in the U.S., the company said.
Streaming full-length Hollywood movies in addition, a new role of the 500-million-plus members of the social network, which has grown into one of the most powerful web player that allows you to easily share photos, videos and other content with friends.
A note for investors of Tuesday, analyst Goldman Sachs Ingrid Chung said that is a long term threat to online rental Netflix Inc, which caught Wall Street investor by surprise.
"Friendship Force" may be a more important factor in the movie audience than the "wisdom of crowds," says Chung.
Netflix shares closed 5.8 percent lower at $ 195.45 on the Nasdaq.
However, Lazard Capital Markets analyst Barton Crockett said in a note to investors that the online-payment-per-view services were not as popular as a subscription-based services to the film, and noted that the proposal to Warner Bros is "far" from that, the launch of subscription service.
Shares of Apple Inc, which offers pay-per-view movies online, grew by 0.1 percent to $ 355.76. Amazon.com Inc (AMZN.O), which also rents movies online, fell 1.3 percent to $ 166.89.
It was not clear whether other studios are planning similar projects with Facebook.
The first film is available on Warner Bros Entertainment page on Facebook is "The Dark Knight." Additional titles will be available for lease or purchase in the coming months.
Rent is 30, the loans, or $ 3 for 48 hours, viewers can pause and restart the movie, when they log back in.
One person close to the project to Warner-told Reuters that it is not partnership, but rather use the fact that Warner developed on its own, using open and pay the web site and technology standards.
More than 400 games and applications use the credits, the company said in an e-mailed statement Tuesday. "We are open for developers and partners who want to experiment with the use of loans for new and interesting ways, and we look forward to hearing what they come up with."