Snap Inc. (NYSE:SNAP) is no longer going silent on its intention to take over the way people watch content, on social media. Over the past few weeks, the messaging app has unveiled a string of mobile partnerships with big TV networks, as it looks to reach out to millennials aggressively cutting the cord.
Snapchat Big TV Deals
It is no longer a secret that streaming of content on social media could be the next big thing, the likes of Twitter Inc. (NYSE:TWTR) and Facebook Inc. (NASDAQ:FB) having already dived headfirst as the race of digital ads revenue heats up. Fearing being left out in the multi-billion industry, the popular messaging apps has also dived into the landscape having partnered a number of big media outlets for 5-minute TV shows.
The fact that the app commands a user base of more than 160 million has made it easy for it to sign deals with some of the biggest brands who are looking for ways to reach out to millennials. Deals with the likes of ESPN, Discovery, the NFL, and Turner Broadcasting will in the coming years make Snapchat the home of content watching on social media.
Race for Ad Revenue
A deal with NBCUniversal, for instance, will result in the creation of a series of short episodes of the network’s popular singing competition The Voice. Scripps, which is the latest network to sign a deal will Snapchat will start producing shows from its popular channels Food Network and HGTV specifically dedicated to users on the messaging app.
“Snapchat’s distinctive mobile platform provides an ideal environment for us to touch millennial and centennials who may not yet be hooked on our premium offerings,” said Henry Ahn, Scripps’ president of content distribution and marketing.
The new original shows will run on Snapchat’s ‘Stories’ section. Making such shows available on the app is part of an effort that the app is hoping to use to bolster engagement levels as well as attract new users. While bolstering engagement levels is a key objective, attracting advertising budgets is high on the agenda for the popular messaging app, as it is now a publicly traded company.
Snapchat stock was up by 2.66% in Friday trading session ending the week at highs of $23.19 a share.