According to The Wall Street Journal, Facebook could spend next year as much as USD 1 billion on original content for its new video platform Watch, according to people familiar with matter. The figure, “could fluctuate based on the success of Facebook’s programming,” said the report.
A few weeks ago, the US newspaper also reported that Apple will spend the same amount –USD 1 billion – over the next year. The figure, however, is far from the USD 6 billion Netflix will invest this year (USD 7 billion in 2018) and the USD 4.5 million Amazon has earmarked for 2017.
Last May, Reuters reported that the world’s biggest social media company would pay up to USD 250,000 for longer, scripted shows (lasting 20 to 30 minutes) and USD USS 10,000 to USD 35,000 for shorter scripted and unscripted shows with episodes lasting about 5 to 10 minutes.
Facebook launched Watch on August 9 for a limited group of people, and earlier this month officially opened it to everyone in the United States. However, the company did not disclosed when the platform could be available in Latin America.
Some of the partners in this initiative are A & E, Cheddar, Hearst, Condé Nast Entertainment, Discovery and Tastemade. According to the TechCrunch site, the associated companies earn 55% of the ad break revenue while Facebook keeps the remaining 45%.