Facebook Ventures into Original Content: Collaborates with Video Creators and Shares Ad Revenue

Facebook is making assertive strides into the realms typically occupied by YouTube and Netflix, marking an evolution in its ever-expanding platform. News first emerged via Reuters, indicating that Facebook has forged new partnerships with millennial-centric entities such as Vox Media and BuzzFeed, commissioning them to generate exclusive content for their soon-to-be-launched video service. This content, much like YouTube, will be peppered with ad-breaks, providing revenue opportunities for both the platform and content creators.

According to the report by Reuters, Facebook is envisaging two distinct categories of video entertainment. The first encompasses fully scripted shows, adopting a format similar to traditional television, comprising of episodes that span 20 to 30 minutes. These shows will be owned wholly by Facebook. The second category includes shorter scripted and non-scripted capsules, running for about 5 to 10 minutes. These will not be Facebook owned, opening opportunity for collaboration and fresh, dynamic content.

Beauty lies in the details. Sources privy to the matter have revealed that Facebook is ready to shell out up to $250,000 for the longer, scripted setups that would eventually become Facebook’s property. This move falls in line with the offerings by other internet TV services like Netflix. Additionally, the social media behemoth plans to offer between $10,000 and $35,000 for shorter shows, coupled with an enticing 55% of ad revenue for the creators. According to Reuters, this scheme would specifically target the creation of short-tier videos.

But Facebook’s foray into video content doesn’t stop there. They’re diving deeper into the sports world with partnerships like the Major League Baseball deal. This arrangement will enable Facebook to live-stream 20 games, not to mention other rumored sports deals it hopes to sign off on before the year concludes.

If these plans come to fruition, they could mark a significant leap towards transforming Facebook into a comprehensive video service, parallel to giants like Netflix, Amazon, and YouTube. As it stands, YouTube enjoys usage by over a billion people, whereas Facebook has touched nearly 2 billion users. By scattering original content across its platform, this could potentially pave the way for Facebook to initiate its own exclusive pay TV service someday.