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Facebook could cannibalize all of these markets you mention: nothing prevents them from turning it into a marketplace of new/used stuff and a platform to watch movies on or sell songs. Have a look at the (pirate friendly) Russian vkontakte.ru: whole american TV series and movies can be watched there.

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could-- more likely, I think that it won't. What's Facebook do? It helps you connect, and reconnect with friends and family -- what's that have to do with buying and selling goods? Why do I need to watch shows on Facebook, and not somewhere else?

Why would you?

Well, for the same reason people already do it on vkontakte.ru:

- it's easy

- if you go fullscreen it doesn't matter where you're streaming from

- it lets you discover stuff you might like (what's your friend watching, etc...)

I'm not convinces of this last point -- what my friends and family like has a lot to do with what I like when we do it together moreso than what our actual similarities in taste are.

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