In what is certain to give Snapchat’s attempts to imbue original content into its program a major boost, Time Warner has announced a new deal that will see the media behemoth spend around $100 million over a period of around two years.
Under the terms of the deal, a variety of shows across a whole bunch of genres will be created. This includes scripted dramas, documentaries, satire, news and so on and so forth. The partners aren’t going to reinvent the wheel here and the general trend of the new content being produced, will lean heavily towards what is already available on Snapchat.
Each of these shows will be short in duration and can be expected to run anywhere between 3 to 5 minutes, that too in a vertical format which seems to have become an audience favorite when it comes to consuming video content online. This will also push up the number of new shows airing per day to 3, up from one currently.
Meanwhile, Snap will take 50 percent of the total revenue generate. The main revenue generation strategy here is advertisement. The rest of the ad revenue will be kept by the content partners. Meanwhile, Time Warner will also invest in ads from Time Warner properties as well — including the likes of HBO.
This is certainly a huge mark of confidence for Snapchat, which has not exactly been having good days of late. The company’s shares took a steep drop following its earnings report and were down to its IPO price. They went back up by 2 percent once the Time Warner deal was announced.
