The social media company has begun a content buying spree in preparation for the launch of its new video service.
(CCM) — Facebook is finalizing its plans for a video service by signing millennial-focused news and entertainment creators Vox Media, BuzzFeed, ATTN, Group Nine Media, and others to provide content, according to a Reuters report. The social media company's as-yet unnamed service will feature scripted shows lasting between 20 and 30 minutes. It will also include shorter scripted and unscripted shows of up to ten minutes in duration, according to the report. Former MTV executive Mina Lefevre is heading up the service.
The content deals mean that Facebook will be competing head-on with YouTube's Red service and television networks for advertising dollars. Facebook will pay up to $250,000 for the longer shows, which the company will own outright, and up to $35,000 for each shorter show. The creators of the shorter shows will also receive 55% of ad revenues.
Since Facebook will not own the shorter content, their creators will be allowed to show them on their own web sites or sell them to other broadcasters after an agreed period, according to the report.
Facebook already offers live video from news publishers and Facebook users. The company also recently signed a deal with Major League Baseball to shop 20 live games this season.
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