Facebook has a huge audience, yes. They almost always have. But when it comes to turning an audience of over a billion users into success in new products and fields, Facebook’s track record is very poor.
The company has tried its hand at a Groupon competitor, automatically opting all of its users into an email service, a smartphone app/launcher and branded phone running the software out of the box. Each of them not only failed to capitalize on Facebook’s massive scale and audience reach; even when actively pushed onto users, they all went down as massive flops.
Is Facebook’s interest in video going to create a better experience for consumers? I suppose in theory it could. But I think it’s more likely to be another thinly-veiled attempt to show more Facebook ads or collect more user data by inserting Facebook into a new part of users’ lives. In other words, it’s plenty practical for Facebook and the company’s investors, but not for the people actually expected to use it.