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Facebook is rumored to be in talks with media and tech companies like Netflix, Disney, Hulu, HBO, and Amazon as it endeavors to integrate their streaming services on its new connected device, per The Information. Code-named "Catalina," the device will enable video-calling similar to Facebook's camera-equipped smart speaker Portal, but will also function like connected-TV set-top boxes, like Apple TV. Business Insider Intelligence

Last October, it was leaked that the social network was working on such a device, but this is the first news since then. Facebook is reportedly aiming to release the device this fall.

Facebook's new device will theoretically differentiate itself from standard streaming-media devices with additional capabilities like video-calling and augmented reality. More than two-thirds (68%) of US households have a connected-TV device — whether a smart TV, streaming device like Roku, or gaming console like PlayStation — per Nielsen.

By now, most households with a streaming device have likely staked their preference among the long-standing leaders, including Roku, Amazon Fire TV, and Apple TV. But the integration of Portal's AI and augmented reality (AR) tech means Catalina's functionality will extend beyond what's possible on those devices.

For example, Facebook plans to have virtual objects, like animated children's books, act as interactive tools for an augmented viewing experience where the wide-angle lens of the camera would track viewers as they moved around to ensure a seamless merging of the virtual and real world.

If Facebook's proposed set-top box can penetrate the somewhat saturated market, it could boost two of Facebook's non-core offerings:

Facebook Watch. The offering's initial launch was rather lackluster, but the company hasn't given up: It's been pushing to increase the popularity of its video platform, pulling big names and advertisers. A popular TV box would provide it with prime real estate to push its own shows to the forefront.

Oculus. The company reported higher than expected sales of its VR hardware, recently launching Oculus Quest — the latest version of the headset, which allows for a freer range of motion and is "all-in-one" — which Facebook CEO Mark Zuckerberg reported is selling faster than the company can make it. While VR hasn't necessarily exploded, sales of headsets are projected to grow by 54% in 2019 to 9 million units, and up 68% annually through 2023 to reach 69 million. Also, Facebook recently bought rights to versions of popular video games "Assassin's Creed" and "Tom Clancy's Splinter Cell" as the company looks to capitalize on the gaming potential of VR. A set-top with interactive content could create another hardware outlet for the immersive media experiences Facebook is developing.

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