Facebook Eyes Up Video Entertainment Industry

Facebook will broadcast high-quality TV show-style content

Facebook is looking to expand into the video entertainment industry, according to sources familiar with the deal. Under the deal, Facebook will broadcast high-quality TV show-style content, including scripted content lasting 20 to 30 minutes, which it will own – as well as shorter scripted and unscripted content lasting 5 to 10 minutes, which it will not own. Content creators will be paid 250,000 US dollars for the longer programmes, with the shorter programmes still being paid a respectable 10,000 – 35,000 US dollars, plus 55% of ad revenue. Both the long and short shows will have ad breaks. Brett Sappington, from the consulting firm Parks Associates, said that the move will “keep users immersed in the Facebook experience and watching more ads”. It could also bring Facebook into competition with services like Amazon and Netflix, depending on where the feature goes next. However, an analyst from RBC Capital Markets analyst has said that instead of looking to buy high-budget content such as Game of Thrones, Facebook is more likely to look for smaller shows. Mark Zuckerberg recently said that Facebook would look for “anchor content initially”, hoping to offer shows that would drive users to Facebook’s video tab. 

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