— This is the script of CNBC's news report for China's CCTV on April 11, Wednesday.
Zuckerberg gave a good answer in Congress Hearing, judging from the performance in the stock market. Facebook stock price closed up 4.5%, it was the biggest one-day gain since Apr 28, 2016. The reason for the biggest one-day gain is that the text version statement of "Apology" has already released before the Congress Hearing.
The key word for the statement is "Apology", and Facebook promise that they never allow the benefits of advertisers and developers override the Facebook's mission of "connecting the world", but Facebook will still offer free service for ads.
[Zuckerberg] "senator this is an imp Q and i'm glad you brought it up. there is common misconception that we sell data to Advertisers. And we do not sell data to advertsiers"
[Cornyn] "but you clearly rent it"
[mark] "what we allow, is for advertisers to tell us what they want to reach then we do the placement. delete ** So if an advertiser comes to us and says, alright i'm a ski shop and want to sell skis to womena, we might have some sense bec pple shared skiing related content.. they shared whether they are a woman ** and then we can show the ads to the right pple, without that data ever changing hands and going to the advertiser."
After Facebook's leak data scandal released, How does Facebook change their profit model? This draws attention from Wall Street's investors. Because the strengthening of investment data protection and other self-regulatory measures will significantly reduce the profitability of Facebook.
Earlier, Sandberg, COO of Facebook, said that if the users want to completely block advertising, they should pay for this privilege, using the subscription fee replace the advertising income. Zuckerberg stated in the Congress Hearing, however, he and other executives think the advertising is the best business model rather than subscription, and there will be a free version for Facebook. He said that because some people are not willing to pay for the subscription service, and part of users like the related ads, they don't want to completely block ads, which tells from the user's feedback.
So, there will be 2 different Facebook service in the near future, free with ads and paying without ads that can choose by users. This Congress Hearing attractive considerable attention from US scientific and technological circles, because the issues about the future protection of data safety not only affect Facebook's development, but also other technology giants includes Twitter, Apple, Google, and Amazon,
[Timothy Lesko, Principal & Portfolio Management, Granite Investment Advisors] "What matters is whether advertisers ... not perhaps what Senators think."
The media is also satisfied with Zuckerberg's answer in the first day.
Zuckerberg behaved naturally and had sincere attitude, there is not too much difference between the statement and the previous version, the senators communicated and listened carefully rather that interrupt aggressively. At present, there are no indicators shows legislators will carry out regulatory action with extraordinary measures.
But the test for Zuckerberg is not over yet. On Wednesday, US time, he will face more aggressive questions from senators in the Congress; we will keep an eye on this issue.