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 Just as surprising was her decision to announce the album by
posting a 15-second video on Instagram, the Facebook-owned
online photo-and-video sharing service.
The exclusive announcement — virtually unheard of for a
recording artist of that caliber — was a coup for Facebook,
which has been upstaged by younger rival Twitter Inc as the
go-to online forum for celebrities, sports and news.
Potentially billions of dollars in television advertising are at
stake as consumers increasingly turn to social networks to stay
abreast of the latest news and entertainment. Twitter and
Facebook both are wooing advertisers with video ad platforms and
trying to hold off mobile communications startups like WhatsApp
and SnapChat, which have lured many younger users.
Leading the Facebook charge is Dan Rose, vice president of
partnerships, acquisitions chief, and architect of some of the
social network's key deals during his eight years there.
Rose maintains a low profile compared with Mark Zuckerberg,
Facebook's founder, and Chief Operating Officer Sheryl Sandberg,
whose "Lean In" book on women in business was a cause celebre. A
surfer, Rose has a reputation as calm, friendly but persistent
at the 5,800-employee company.
Previously at Amazon.com, the 42-year-old Rose helped launch the
Kindle reader and nail down deals with publishers.
When Facebook's stock was beaten down in the wake of its IPO in
May 2012, Rose told an all-staff meeting that Amazon plowed
through the turbulence of its early years by ignoring the
"noise" around it and focusing on long term goals, a person who
was present at the meeting said.
His approach has helped Rose find common ground in sometimes
tricky relationships. He was instrumental in three years of
talks to win Apple Inc permission in 2012 for Facebook to tap
directly into iPhone features like pictures, as well as a 2006
advertising pact with Microsoft Corp which a year later made a
seminal investment in the young company.
Now Rose is spearheading the efforts to broaden the Facebook
conversation, dominated by talk of friends and family, by tying
up with celebrities, news organizations and other "content"
providers.
People "like to see stuff from their friends, that's where
Facebook started and kind of where our origin is, but they also
really like to see stuff from public voices," said Rose.
"When that type of stuff shows up in people's newsfeeds they
like it, they click on it, they comment on it, they engage with
it," Rose said in an interview.
In November, Rose and Facebook product chief Chris Cox hosted a
lunch at the posh Soho House club in West Hollywood with
representatives of various celebrities, including Madonna,
rapper Pitbull and actor Channing Tatum.
In recent months, Rose's team has also made frequent visits to
broadcasters and other media organizations, preaching the
virtues of Facebook and discussing potential partnerships.
Facebook may soon announce a series of tie-ups with a
broadcaster around some popular television shows and sporting
events, a source familiar with the matter said.
"There's a lot of disconnect between Hollywood and the Valley on
many different fronts. He plays a really important role," said
Guy Oseary, the manager for Madonna and band U2, who was at Soho
House lunch. MORE THAN JUST FRIENDS
Analysts say Facebook's efforts to recast itself as the virtual
town square for public conversations about everything from
yesterday's football game to breaking news will not be easy.
[to top of second column] |
 "Facebook is still the place where you see friends,"
said Ben Schachter of Macquarie Research. Changing consumers' online
habits is tough, he added.
Some media and entertainment organizations, such as the ESPN
television sports network, have nearly as many followers on Twitter
as they do on Facebook, even though Facebook's total audience of 1.2
billion active members is five times Twitter's. CNN and CNBC have
more followers on their Twitter accounts than on Facebook.
Twitter, known for 140-character messages, has
created a system for broadcasters to show video clips and ads
through tweets coordinated with what is being shown on TV. In
September it struck a deal with the National Football League to show
video highlights of games on Twitter.
Past efforts to nudge consumers into using Facebook's social network
in different ways have fizzled, from movie rentals to online shops
by big retailers.
Facebook said the movie rentals were an effort that the film studios
initiated on their own, and noted that the current focus on public
content is aimed at better supporting user behavior that's already
occurring on its social network.
Facebook users posted 20 million comments and "likes" about the
opening game of the National Football League season as the match
unfolded.
On Thursday, Facebook took a page from Twitter and introduced a
"Trending" feature, offering a personalized list of hot discussion
topics.
STAR POWER
To cozy up to the media and entertainment industry, Rose needs to
demonstrate the benefits of its social network and its massive
audience, something rival Twitter has proven adept at.
"I think of it kind of like nation-state relationships, for these
larger companies and these larger partnerships, where you have
diplomats and ambassadors," said Rose. "The goal of those people is
to find areas of mutual shared interest."
In September, Facebook began providing broadcasters with reports
detailing the conversations their shows generated on the social
network. And it created special tools to help programs such as ABC's
"Dancing with the Stars" incorporate public comments of Facebook
users into their shows.
Rose has also turned the mergers and acquisitions
team, which he runs, to the project. In December, Facebook acquired
Sportstream, whose technology organizes comments that sports fans
post on Facebook, making it easier for sports broadcasters to
discover and use some of the real-time conversations.
Then there's Instagram, the photo and video-sharing service that
Facebook acquired for roughly $700 million last year, and which is
popular among movie stars, athletes and other public figures.
Rose's team, including his deputy for celebrity outreach Justin
Osofsky, cultivated a relationship with Beyonce for months. When she
proposed the album announcement on short notice, they leapt at the
opportunity.
Beyonce declined to comment on the launch of the album, a secret
until the Instagram video. It sold a record 1 million copies on
Apple's iTunes store in six days.
(Editing by Edwin Chan, Peter Henderson
and Grant McCool)
[© 2014 Thomson Reuters. All rights
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