What the BSkyB Deal Means for Twitter's Business

Another broadcaster turns to the microblogger to make television more interactive. Should investors expect to see improvements in Twitter’s business as a result?

Tim Beyers
Tim Beyers
Apr 23, 2014 at 9:30PM
Technology and Telecom

Twitter's (NYSE:TWTR) business depends on extending the capabilities of its social platform, Fool contributor Tim Beyers says in the following video.

We know because we've seen several platform-extending deals recently. Earlier this month, the company teamed with British Sky Broadcasting (NASDAQOTH: BSYBY) of the U.K. to allow subscribers to record or watch programming live by clicking on tweets with the #WatchOnSky hashtag. The hitch? You have to be subscribed to the channel broadcasting the show you're after. You also have to log in via a Sky ID to prove you are who you say you are.

Regardless, the arrangement mirrors an October deal with Comcast  in which a "SeeIt" button gives users access to video clips and (where available) full episodes. Nielsen, for its part, is using Twitter data to enhance the decades-old TV ratings model.

Mix in acquisitions of Gnip for larger-scale social data analysis and Cover for better use of Android smartphone lockscreens, and Tim says you've the makings of a more pervasive, interactive ecosystem.

Now it's your turn to weigh in. Do you expect Twitter's business to benefit from these sorts of platform-extending deals? Please watch the video to get the full story and then leave a comment to let us know your take, including whether you would buy, sell, or short Twitter stock at current prices.