Social media giant Facebook has started to farm out original content as it linked up with Buzzfeed, Group Nine Media, Vox, and others for its future video service.
Reports revealed that Facebook is planning to roll out two types of video content. First is a 20- to 30-minute episode, where it holds sole proprietary rights. The other is short “unscripted shows,” which will be good for about 10 minutes maximum. The latter will probably be supplied by Buzzfeed, among others.
This is part of Facebook’s plan to push for original videos on its platform. The videos will not be limited to skits and scripted shows, but also sports and game shows as well. In March this year, Mark Zuckerberg and company inked an agreement with Major League Soccer and Univision Deportes to air live football matches via streaming.
According to the alleged proposed business arrangement, Facebook will pay $250,000 for the 30-minute scripted shows because the company will essentially be buying the video. For shorter clips, the company is offering between $10,000 and $35,000, as well as a cut of the ad revenue.
Assuming proprietary rights is the same business model introduced by Netflix and Amazon on their original shows. It’s not clear, however, if Facebook will accept user contribution for videos.
Zuckerberg said late last year that they are pushing for the whole community to utilize the video tab on Facebook. By partnering with Buzzfeed and Vox, the company is clearly targeting millennials.
Earlier this year, Facebook hired Mina Lefevre, former EVP and head of scripted development at MTV, to head its original programming division. She follows the hiring of Ricky Van Veen, formerly of College Humor, who is now the head of global creative strategy.
If this pans out, it will be another potential revenue stream for Facebook as each video content will feature ads during breaks. The company is offering over half of the ad income to its partners. That would be a huge guarantee considering that Facebook users generally ignore proprietary laws in sharing content.
Another advantage for third-party video providers is that they are assured of viewers owing to the immense size of the Facebook community. The social media giant hopes that any qualms about their videos being stolen will be offset by the long-term gains.
To date, Facebook has not yet issued a statement on the report about the social media giant paying third-party providers for videos.