Focusing on the metaverse on social media will benefit Facebook’s public image, according to GlobalData
- Facebook’s rebranding should highlight the importance of the metaverse, an upcoming ‘virtual world’ technology that GlobalData says will be a ‘mega theme’
- Reducing Facebook’s association with social media will benefit the company’s public image following the recent negative press, especially regarding data privacy – the company has the lowest possible score in GlobalData’s thematic social media dashboard
- Facebook is at the forefront in shaping expectations of the metaverse, but other titans like Microsoft are also expressing interest
- GlobalData expects metaverse economic structure to be based on NFTs and cryptocurrency
Mark Zuckerberg’s plan to rename Facebook to reflect the company’s commitment to building the metaverse, as well as moving away from its association with social media, will ultimately serve Facebook well, GlobalData said. The leading data and analytics company notes that the Metaverse is set to be the next “mega-theme” Big Tech has in its sights.
Amrit Dhami, Associate Analyst at GlobalData, comments: “GlobalData defines a ‘mega theme’ as something that will be particularly important and disruptive to the tech industry, so it’s no surprise that companies like Facebook are looking to get a head start on the development of the metaverse. Although nascent, new prototypes related to the Metaverse are expected to emerge over the next three years. “
Facebook’s plans to dominate the metaverse are gaining momentum. A beta of the company’s virtual reality (VR) workspace, Horizon Workrooms, launched in August, while September saw the announcement that Andre Bosworth, head of augmented reality (AR). and VR, would be promoted to CTO. In addition, the company announced last week that it was creating 10,000 jobs in the EU dedicated to the development of the metaverse. By becoming a “metaverse business”, Facebook is turning away from social media and advertising, which is currently its main source of income.
Zuckerberg is particularly keen to steer Facebook away from social media, with whistleblower Frances Haugen recently testifying in the Senate that the company has repeatedly put profits ahead of user safety.
Dhami continues: “The time has come for Facebook to start disassociating itself from social media. It serves an online community more concerned with mental health than ever before, which can make it harder for the company to shy away from liability. Facebook must win over skeptics about its data privacy capabilities as it currently has the lowest possible score in GlobalData’s thematic social media dashboard, at one in five, and ranks twenty-seventh in this ranking. sector out of 35 companies.
Another challenge for Facebook is that the concept of metaverse is not universally understood. GlobalData defines the metaverse as a “virtual world where users share experiences and interact in real time in simulated scenarios”. AR is expected to be a staple and GlobalData predicts the AR market to be worth $ 152 billion by 2030.
Dhami adds: “The idea is that the assets of the Metaverse echo how they function in the real world and be transferable for property or property. Therefore, the economic structure is likely to be based on NFTs and cryptocurrency. The metaverse is still in its infancy, but Facebook is already moving forward with its enterprise technology.
While Facebook is at the forefront in shaping the expectations of the metaverse, another titan keen to take a step is Microsoft, which has also expressed a desire to occupy this space but has not taken the same tangible steps as Facebook.
Dhami notes: “Microsoft intends to use digital twins to create an ‘enterprise metaverse’ that draws inspiration from the real world. Digital twins use Internet of Things (IoT) sensors to synchronize a digital model of any physical item with its real version. The company also released a limited version of Microsoft Mesh, a cloud-based mixed reality meeting app that enables shared experiences. In total, GlobalData has recorded 36 Metaverse related transactions so far this year. This is definitely an area to watch. “
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