Facebook Inc (NASDAQ:FB) is planning to invest millions in original video content in a bid to attract new users and advertisers. The social networking giant is looking to produce and acquire videos aimed at millennials.
Facebook has inked deals with news and entertainment companies – including Vox Media, BuzzFeed, ATTN and Group Nine Media – to create shows for its upcoming video service, Fortune reported, citing several sources familiar with the matter.
The social media company is interested in long and short-form content and is seeking companies and publishers that already have a large millennial following, said the sources.
Facebook Plans Scripted and Unscripted Shows
According to the unidentified people who talked with Fortune, Facebook is interested in scripted and unscripted shows. The social networking giant is planning for scripted shows with episodes lasting 20 to 30 minutes, which it will own. At the same time, it is looking for shorter scripted unscripted shows with episodes lasting about 5 to 10 minutes, which it will not own.
The sources said that Facebook Inc (NASDAQ:FB) will pay up to $250,000 for the longer, scripted shows and $10,000 to $35,000 the shorter shows. The company will give 55% of revenue from ads to creators of the shorter shows. The company will run ads during both the long-form and short-form shows, according to the sources.
Facebook will show the short-form shows on its site for negotiated period of time. After that, the creators will be able to run the shows on their own properties, the sources said.
Live Video
Facebook is also betting big on live video including live sports. It offers a number of news publishers as well as its users to live stream videos. Recently, the company signed a deal with Major League Baseball to stream 20 games live this season.
Earlier this year, Facebook hired former MTV executive Mina Lefevre to help the company create original shows for its video service.
Facebook is exploring new options to attract more advertising dollars. However, in the video streaming space, the company would face stiff competition from Google’s YouTube Red, Snapchat’s Discover feature, traditional television networks.
Meanwhile, shares of Facebook Inc (NASDAQ:FB) closed up 1.33% on Wednesday. The stock is up over 30% so far this year.
