Social media giant Facebook is reportedly looking to branch out into the news sphere, following a report by the Wall Street Journal (WSJ) that it's working on a news delivery system.
According to WSJ, the service, dubbed Reader, shows content from Facebook users and publishers in a new visual format targeted specifically at its mobile users.
Sources with knowledge of Facebook's plans said the service is aimed at news content specifically and its latest versions resemble that of the Flipboard app, which collects and lists news from multiple sources.
The sources did not, however, indicate to WSJ when Facebook is expected to make the Reader service available to its users. Facebook has declined to comment on the reports.
Competition
If Facebook goes ahead and releases the Reader service, it would compete with existing apps like Pulse and Zite.
Pulse was launched in 2010 and already passed the 20 million user milestone late last year. The start-up claims that over 30 million people use Pulse to read news while more than 10 million stories are read daily. The news aggregation app applies algorithms and other filters to suggest relevant news stories to its users.
In April, LinkedIn bought the start-up for $90 million in an attempt to make the professional network more appealing for daily users and subsequently boost its revenue.
Pulse recently expanded its service to include social and video feeds. It also partnered with Microsoft to create a Web app version of the service.
Zite, which offers a service similar to Pulse, was acquired by CNN in 2011 for between $20 million and $25 million.
Ad targeted
The reports of a Facebook news service follow just days after the social media giant introduced a video feature for its Instagram app.
It's no secret that Facebook has pushed advertising through all its offerings, and it is expected it will do the same with video on Instagram and Reader.
Owner of Retroviral Digital Communications, Mike Sharman, says it's simply a matter of time before Instagram's videos will contain ads. "With 130 million people engaging with the app, ads are a foregone conclusion."
Response to Facebook's plans to incorporate ads has not gone down well with its users, with changes made to Instagram's terms and conditions in December last year resulting in a 42% drop in active users, from 16.3 million in mid-December to 7.6 million by 14 January.
Facebook CEO Mark Zuckerberg also previously indicated big brands have shown keen interest in advertising on Instagram, but added there were no plans to implement such a service.
Chameleon
Facebook continues to introduce new offerings, as well as products to enhance the network's presence and cater to the changing needs of its users. Its biggest focus lately has been on the mobile sector.
In April, Facebook introduced its Android Home sleeve, which incorporates its messaging features into a smartphone's home screen. Home has, however, received a lukewarm reception, especially the Facebook phone. The HTC First, which comes preloaded with Facebook Home, failed to capture the imagination of hardcore Facebook users, with its release in the UK being delayed indefinitely.
Competing with its biggest rival in the social networking sphere, Facebook also introduced hashtags.
The hashtag, which was initially introduced by Twitter, allows users to follow the conversation on certain trending events. This, in turn, enables advertisers on Facebook to track what is being said about specific topics.
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