A recent lawsuit has brought to light startling revelations regarding the demise of Facebook’s streaming business, implicating a strategic move allegedly made to appease Netflix.

Court filings unsealed in Meta‘s antitrust lawsuit have shed light on an ad partnership between Facebook and Netflix, suggesting that it played a pivotal role in the dismantling of Facebook’s once-promising streaming division.

According to TOI, the lawsuit contends that Facebook’s streaming service, Facebook Watch, was nearly discontinued to safeguard the advertising relationship between the social media giant and Netflix CEO Reed Hastings.

The documents suggest that the close ties between the two companies, particularly due to Netflix‘s significant advertising expenditure and Hastings’ position on Facebook’s board, influenced Facebook’s decision-making.

The downfall of Facebook’s streaming venture is attributed not only to this alleged partnership but also to cost-cutting measures initiated by Facebook in November 2022, which included substantial job cuts within the streaming division.

A letter accompanying the lawsuit urges the court to compel Reed Hastings to respond to a subpoena for documents pertinent to the case. It highlights the strength of the relationship between Netflix and Facebook during Hastings’ tenure on Facebook’s board, indicating his direct involvement in fostering the partnership.

Facebook’s foray into streaming began in 2017 with the launch of Facebook Watch, which aimed to feature original TV shows and licensed content. However, the streaming service faced challenges despite its impressive budget and reach on the social media platform’s home screen.

The lawsuit suggests that tensions between Facebook and Netflix escalated as Facebook Watch sought to compete with established players like Netflix, with Hastings caught in the crossfire as a board member of Facebook.

The unsealed court filings are part of a class-action antitrust case against Meta, filed on behalf of consumers and advertisers alleging Meta’s monopoly status in the social media market.

As the legal battle unfolds, these revelations raise questions about the dynamics between tech giants and their strategic alliances, underscoring the complex interplay of competition and cooperation in the digital landscape.