Facebook is keen to emulate the Netflix or Amazon act by producing and owning videos which in turn will help it earn more ad revenue.
Facebook has tied up with a number of media firms such as Vox Media, BuzzFeed, ATTN, Group Nine Media and a few others to have enough shows to populate its video service. There will be both long form and short form content that will be shown, which will serve as another front for Facebook to cash in on advertising revenue.
The long-form videos will be scripted and will typically last for around 20 to 30 minutes. Facebook will be investing up to $250,000 for creating each and will also own exclusive right over them as well. The shorter videos, on the other hand, will last just about 10 mins or so and can be either scripted or unscripted. These will be cheaper to produce as well, with each costing Facebook around to $10k o $35 at the most. However, Facebook won’t own the shorter videos. Instead, 55 percent of the ad revenue will be turned over to the creators, with Facebook retaining the rest.
Creators of the shorter videos will also be able to host the video on any other site that they wish to but only after a predetermined period of time. They will also have the right to even sell them off after the time restriction expires.
The strategy is the same as has been adopted successfully by the likes of Netflix and Amazon that own several of the shows they help produce. Facebook has already stated they would be prioritizing video content on their site to attain growth and are keen to emerge as competitors to the likes of YouTube or Snapchat’s Discover service.
Earlier, Facebook had also attained the rights from Major League Baseball to host the season’s 20 games live this year. This apart, Facebook already allows its users as well as news publishers to beam videos live. The social media company had also enlisted the services of ex-MTV official, Mina Lefevre to lead its efforts in the video section.