Snapchat will soon get more TV-like shows along with numerous ads, as Snap Inc. and Time Warner ink a two-year agreement worth $100 million.
This doesn't come as much of a surprise, though. The social media company has been striking deals with networks here and there to beef up its original content, including but not limited to ABC, BBC, ESPN, NBCUniversal, and Vice Media.
Snap Inc. Wants More Shows From Time Warner
According to the official announcement, the partnership between the two will entail the development of what they call "made-for-Snapchat Shows."
Time Warner is said to produce 10 shows per year that last between three and five minutes, with genres ranging from scripted drama and comedy to daily news and documentaries.
"This partnership is another exciting step as we continue to branch out into new genres, including scripted dramas, comedies, daily news Shows, documentaries, and beyond," Nick Bell, Snap Inc.'s vice president of content, says.
By the same token, it has also promised to purchase ads on Snapchat, which means users will soon see more of HBO, Turner, and Warner Bros. on the platform.
"As a company that has driven the evolution of media, this is an exciting and natural move as we bring together some of our leading video properties and brands with Snapchat's dynamic platform," Gary Ginsberg, the executive vice president of Corporate Marketing and Communications at Time Warner, says.
Currently, Snap Inc. broadcasts one show a day, but it plans to boost production to three by the end of 2017. Needless to say, the deal with Time Warner won't be enough to achieve that goal, but at any rate, it's one big step toward that direction.
It's also worth mentioning that Amazon, Apple, Facebook, and Netflix are some of the competitors that the company are going toe-to-toe with. Most notably, the Cupertino brand recently released its first original show called Planet of the Apps, which stars William James Adams or will.i.am, Gwyneth Paltrow, Jessica Alba, and Gary Vaynerchuk, founder of VaynerMedia.
Snap Inc. Shares Increase
After word came out that Snap Inc. and Time Warner have reached an agreement for original content, the social media company's shares rose by about 3 percent.
That spells good news for the Snapchat developer, as it's coming at a time when its shares dropped back to its $17 IPO or initial public offering.
Snap Inc.'s Q1 2017 earnings report shows that Snapchat has 166 million daily active users, approximately 8 million of which tune in to the platform's shows, CEO Evan Spiegel said.
The Bottom Line
To sum things up, Snap Inc. is pushing for more original content on Snapchat, teaming up with Time Warner to jump-start production. From the look of things, it was a good move too, considering its current situation.
With all said and done, what do you think of the company's deals with various network cables, particularly the agreement with Time Warner? Feel free to leave a comment below and let us know.