Figure 21. Netflix’s Facebook Credits Offering
The idea of virtual currency is what Facebook credits is all about. When customers use credits to buy items on Facebook, the transaction is between the customer and Facebook. The customer doesn’t have to send their financial details or credit card information to the merchant. Customers can buy Facebook credits within many games or by clicking the Payments tab in their account settings. Facebook accepts credit cards, PayPal, Facebook Credits gift cards or mobile phone payments.
Customers can also earn Facebook credits through special promotions. An example of a special promotion is the 220 credits Netflix is offering, Figure 21. On the day I looked at the special promotions for Facebook credits other deals were being offered by all types of companies, both large and small. They included: Discover Card, ASPCA, AutoQuotes, Citibank Card, BillmyParents.com, Verizon Fios, PeopleFinders.com, VistaPrint, RealPlayer, FTD Florist, People, Real Simple, Entertainment Weekly, Maxim, InStyle, Prevention, More, Elle and Women’s Heath and Us Magazines, Old Navy, Lancome, Kodak, 24-Hour Fitness, Entertainment Book, Red Envelope, Angie’s List, Sport Illustrated, The Gap, Norton, Shoe Dazzle, Ghirardelli, Dr. Jay’s, Piperlime, Smilebox, Costume Kingdom, Etnies, 80s Tees, eCampus.com, Rebtel, Xoom, PicaJet FX, and Quickbooks Online.
Customers can also take gift cards and exchange them for Facebook credits with Plastic Jungle. When the customer enters their gift card information a prepaid label is generated so the customer can mail in the card. Once it is received and verified, Facebook credits are added to the customer’s account. Plastic Jungle pays up to 92 percent of a gift card’s balance. For example, a customer could get 920 Facebook credits for a $100 Target gift card.
Figure 21. Netflix’s Facebook Credits Offering
In part to address piracy and plummeting DVD sales, Warner Brothers decided to use Facebook as a place to provide streaming movie rentals, Figure 22. Rentals for example could cost 30 Facebook credits, or $3. Users can watch the movie up to forty-eight hours after purchase. There are no changes to Facebook while the movie is being watched, so customers can, while they’re watching the film, update their status. Note that when a company uses Facebook credits typically Facebook receives a 30 percent cut of all revenue generated.
Facebook credits are Facebook’s virtual currency. Millions of Facebook users have been using Facebook credits to pay for virtual goods inside games like FarmVille and Mafia Wars. Paying for movies is a natural extension of that commerce idea. Facebook began testing Facebook credits in virtual games over two years ago. It seems that Facebook will look to create the virtual currency strategy into a payment process for lots of digital goods.
The film streams from an application Warner Brothers built specifically for Facebook, and can be watched full-screen. The strategy is to make films available through Facebook a natural extension of their digital distribution efforts. It gives consumers a simple, convenient way to access and enjoy WB films through the world’s largest social network.
Figure 22. Warner Brothers Facebook Movie Player