Facebook is willing to pay up to $250,000 for original content from companies such as BuzzFeed and Vox Media, according to Reuters.
The exclusive report further reveals the social network's plans on releasing original videos, as Facebook looks to make its Video tab more relevant among users for additional monetization opportunities.
Facebook Signs Deals With Buzzfeed, Vox Media
According to Reuters, Facebook has entered into deals with a variety of companies that include BuzzFeed, Vox Media, ATTN, and Group Nine Media, which owns the Dodo, Thrillist, and NowThis, for the production of original videos. These companies are active on Facebook and have a large following among the millennial audience.
The videos, which will come with advertisement breaks, will be separated into two tiers. The first tier will be made up of scripted programs that last up to 30 minutes, which Facebook will own, while the second tier will include scripted and unscripted programs that last up to 10 minutes, which Facebook will not own.
Facebook is offering up to $250,000 for the scripted programs, following the same strategy being used by Netflix and Amazon for the original content that they offer on their respective video streaming platforms.
Meanwhile, for the shorter programs, Facebook will be paying between $10,000 and $35,000 for each show. The creators will be receiving 55 percent of the revenue that the videos will generate through advertisements.
The short-form shows will initially be exclusive on Facebook. However, after a certain period, the content creators will be able to run the videos on their own platforms and will be allowed to sell the programs.
The sources who revealed the information wished to remain anonymous, as the deals and their terms are confidential.
Facebook Original Videos
Late last year, reports claimed that Facebook was looking to boost content on its platform, with the company initiating discussions with TV studios and video content producers to license programs. Leading the talks was Ricky Van Veen, the head of global creative strategy for Facebook.
Earlier this month, rumors surfaced that Facebook was planning to launch original videos in mid-June. The company was reportedly developing a total of 24 shows in the two aforementioned tiers, with high-quality shows similar to the original programs of Netflix and short-format shows that refresh every 24 hours. However, last week, it was reported that Facebook will delay the launch of its original videos, possibly to the end of summer.
Facebook has been aggressively increasing the number of videos and livestreams that appear on top of the News Feeds of users, a plan that will be made more potent after it rolls out its original videos. Facebook is trying to grab hold of most of the advertising dollars moving away from television into online platforms before rivals such as Snapchat and YouTube are able to do so. The introduction of original videos is also being seen as a way to keep users on Facebook for longer periods.
The details regarding the original content coming to Facebook, however, are still under wraps. We will likely know more about the programs as their launch on the social network draws nearer.