Facebook Inc (NASDAQ:FB) has reportedly struck deals with numerous media houses including BuzzFeed, Vox Media, Group Nine Media and ATTN that are oriented towards original video content targeting millennials.
Facebook is said to have made the deals with these companies as part of its upcoming video service. Sources familiar with the dealings revealed that the deal will allow the media houses to create original video content for its social medial platforms. The video service will host both long and short videos that will incorporate ad breaks. The sources revealed that the long videos will contain scripted content lasting about 20 to 30 minutes while the short videos will be unscripted and will only last about 5 to 10 minutes.
Aggressive push towards video may allow Facebook to boost revenue
Facebook has been pushing aggressively towards video over the past two years. The firm believes that there is a lot of potential that it can tap into by diverting more focus towards original video on its social platforms. The company already has a massive social media following and it plans to use those numbers to generate more revenue through advertising. Unfortunately, not much has been revealed about the deals that the social media giant has been making, due to the confidential nature of the negotiations.
Facebookâs decision to venture deeper into video represents its latest push towards attracting more advertising revenue. Additionally, the move puts the company in direct competition with companies that focus on original video content such as YouTube which is owned by Alphabet Inc (NASDAQ:GOOGL).
It was also revealed that the company is willing to part with as much as $250,000 for the scripted videos. It will pay $10,000 to $30,000 for the shorter shows. The firm is basically adopting the same strategy used by streaming giants such as Netflix, Inc. (NASDAQ:NFLX). Facebook had announced in December last year that it had plans to start purchasing original video content, both scripted and non-scripted for its video service.
Facebook stock closed the latest trading session on Thursday at $151.96 after rallying by 1.28% from the previous close.
