Facebook is diving deeper into YouTube/Netflix territory with news first reported by Reuters that it has signed deals with millennial focused news and entertainment creator like Vox Media and BuzzFeed to make videos for it soon to be launched video service. The contents will feature ad-breaks just like what’s obtainable on YouTube.
According to Reuters, “Facebook is planning two tiers of video entertainment: scripted shows with episodes lasting 20 to 30 minutes, which it will own; and shorter scripted and unscripted shows with episodes lasting about 5 to 10 minutes, which Facebook will not own, according to the sources.”
According to sources familiar with the matter, Facebook could pay up to $250,000 for longer scripted shows that will eventually be Facebook owned which is what services like Netflix and other internet TV services currently offer. There is also plan by the social media giant to pay between $10,000 and $35,000 for shows and an additional 55 percent of ad revenue to creators and according to Reuters, this will be for short tier videos.
Facebook is digging deeper into the videos space with deals like the Major League Baseball one which Facebook says will allow it stream 20 games live among other rumoured sports deals it hopes to sign before the end of the year.
If confirmed, this will mark a major step towards becoming a full video service like Netflix, Amazon and YouTube. YouTube is currently being used by over 1 billion people while Facebook has nearly 2 billion users and by bringing original content to its platform, Facebook might just be starting its own pay TV service someday.