Home Technology Facebook Contracts BuzzFeed, Vox, Others For Original Shows [REPORT]

Facebook Contracts BuzzFeed, Vox, Others For Original Shows [REPORT]

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Videos and live streams are taking up a lot of space in our Facebook News Feed currently. But it appears there is no respite in site, as Facebook has signed deals with several entertainment and news creators to make shows for its upcoming video service, according to Reuters.

What are Facebook’s plans for original content?

Reuters claims that the social media giant is prepared to pay over $250,000 per episode for its original video initiative. The tech giant is also planning to license shorter-form content for $10,000 to $35,000 an episode and has signed deals with BuzzFeed, Group Nine Media, ATTN and Vox Media to produce videos.

Facebook is planning two tiers of video entertainment – shorter unscripted and scripted shows with episodes lasting about 5 to 10 minutes and scripted shows with episodes lasting 20 to 30 minutes. The social networking site will own the episodes lasting 20 to 30 minutes, but it will not own the 5 to 10 minutes videos, notes Reuters.

The social media company will pay up to $250,000 for longer, scripted shows, while it will pay up to $10,000 to $35,000 for each show for the second tier of shorter shows. The tech giant will give 55% of the revenue from ads which will run during the short-form and long-form shows to creators, the report claims.

By acquiring and licensing original videos, Facebook aims to attract more advertising dollars and take on competition from Snapchat’s Discover feature, Alphabet’s YouTube Red and conventional television networks. As of now, there has been no comment from Facebook on the matter.

Increased focus on video content

Facebook already offers live video from several news publishers and its own users. It has also been live-streaming sports videos in the past few months as well. Most recently, it signed a deal with Major League Baseball to stream 20 games. The company also added a video tab to its mobile app and revealed plans for a TV app.

During Facebook’s most recent earnings call earlier this month, Mark Zuckerberg began talking publicly about spending money on “anchor content” for the video tab. Chief Financial Officer David Wehner said during the same call that the company was looking at “kickstarting an ecosystem for longer-form content on Facebook” with upfront investments.

In December, the tech giant said it would purchase original scripted and unscripted programming for its video service, and it hired former MTV executive Mina Lefevre earlier this year to lead the effort. According to reports, the shows in production include a virtual reality dating show and other shows involving A-list celebrities.

Recently, Business Insider reported that the tech giant had signed Conde Nast to produce some of its original shows and videos. BI also noted that the social media company was looking to reveal a first slate of content in June at the Cannes Lions advertising festival.

On Wednesday, Facebook shares closed up 1.33% at $150.04. Year to date, the stock is up more than 30%, while in the last year, it is up almost 28%. The stock has a 52-week high of $153.60 and a 52-week low of $108.23.

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Aman Jain
Personal Finance Writer

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