According to a report from Reuters, the largest social-media company in the world is will soon be in direct competition with television and its using its user base of millenials to make it happen. The report states that Facebook recently signed deals with Vox Media, BuzzFeed, ATTN, Group Nine Media and others that focus on creating news and entertainment for the Internet-first age group.
Sources with knowledge of the confidential deals told Reuters that Facebook is planning, "scripted shows with episodes lasting 20 to 30 minutes, which it will own." "Shorter scripted and unscripted shows with episodes lasting about 5 to 10 minutes," are also in the offing, but Facebook will not own that content. Reports say that Facebook is making the push to in order to generate more advertising revenue.
Facebook's move to acquire and license original content is the latest in its push to attract more advertising dollars, putting the company in head-to-head competition with Alphabet Inc's (GOOGL.O) YouTube Red, Snapchat's (SNAP.N) Discover feature, and traditional television networks.
It is an attempt to deliver on Facebook Chief Executive Mark Zuckerberg's remarks to investors earlier this month that the company was looking for so-called “anchor content” that would draw people to the video tab on Facebook's app.
Facebook will be paying up to $250,000 for the lengthier company-owned scripted shows. Reuters noted that it was similar to strategies taken by Netflix and Amazon, "which both now own some of the content they sell to subscribers." The shorter video content will cost Facebook anywhere from $10,000 to $35,000 for each show, with creators receiving 55 percent of the ad revenue generated.
Back in December, the social-media company indicated its intention grow its video content by hiring former MTV executive Mina Lefevre. Facebook has tested the waters of its live video service in the recent months by broadcasting sports games, including a deal with the MLB that allows 20 live games to be shown on the social media site this year.