Facebook (FB) Adds ‘Rooms’ Feature To Messenger, Taking On Zoom Video (ZM) And Skype

By Amit Chowdhry • Apr 24, 2020
  • Facebook is taking on Zoom and Skype with new the Messenger Rooms feature — which allows 50 participants and supports non-Facebook users through a shared link

Today the Zoom Video Communications Inc (NASDAQ: ZM) stock price dropped over 6% to $158.80 from $179.89 while the Facebook, Inc. (NASDAQ: FB) stock price gained 2.67% to $190.07 from $185.13.

The reason for the stock fluctuations is likely to do with Facebook, Inc. enhancing its video offerings to intensely compete against Zoom Video Communications. Skype also enhanced its video chat offerings this month through its new “Meet Now” feature. Zoom has seen its daily video conferencing usage surge from 10 million to 200 million in just 3 months due to the social distancing measures associated with the COVID-19 pandemic.

In a Facebook Live session, Facebook, Inc. (NASDAQ: FB) CEO Mark Zuckerberg announced several new products and features today, including Messenger Rooms — which can host video calls of up to 50 people. The Rooms feature is going to be added to WhatsApp and Instagram as well. The Facebook Portal devices will also have access to the feature.

Along with the ability to host 50 people in a group video chat, Facebook’s Messenger Rooms also supports non-Facebook users who can join the conversation through a link. Messenger Rooms is also integrated into the Messenger desktop app. With the settings, you can set the meetings as public or private. And the admins of the meetings can remove unwanted guests. Plus there are augmented reality effects and 360-degree backgrounds.

Messenger Rooms is going to start rolling out in several countries this week. And then it will be arriving globally to all users in the coming weeks. Here is how it works:

“If your friends or communities create rooms that are open to you, you’ll see them on Facebook so you can find things to do and people to hang out with. When you’re invited to a room, you can join from your phone or computer — no need to download anything to get started,” wrote Facebook VP of Messenger Stan Chudnovsky in a blog post.

Over 700 million Facebook users utilize video calls through WhatsApp and Messenger every day. And video calls also more than doubled since the coronavirus pandemic started.

WhatsApp has been bumped up as well from four people to support for eight people. The video calls are protected with end-to-end encryption. Facebook Dating users will be able to go on virtual dates using video chats on Messenger — which is a feature that will be coming in several months where the platform is available. And Facebook is bringing back the discontinued “Live With” feature so another person can be added to live videos (also to be available via Facebook Portal).

Disclosure: I own a small number of Facebook, Zoom, and Microsoft (Skype parent company) shares