"Facebook is establishing itself as a destination for premium video content, and demonstrating a willingness to pay significant amounts of money for that content. Facebook can likely drive revenue growth to offset content costs, albeit at lower margins than what the company currently generates," analyst Brian Wieser wrote in a note to clients Wednesday.
"However, because of measurement issues the company has faced in the past (and possibly a new one identified by a trade publication in Australia and replicated by us within the United States), we think the primary winner of Facebook's expansion in video will be third party measurement firms," he added.
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