Two companies said they were paid between $10,000 to $25,000 per episode for their shows. They’ll also receive 55 percent of the ad revenue while Facebook takes the rest.
In a move that could be seen as a direct competitive move to YouTube, paid series have to debut episodes on Facebook, according to the publishers. However, they are allowed to move episodes off-platform to their own owned-and-operated players or YouTube after a certain period of time. Though Facebook was encouraging publishers to use their player off-site, the goal is to get as many people watching Facebook shows on Facebook itself, multiple sources said.
Facebook has just made a case to increase the cost of advertising on the Internet. In a brazen move the corporate behemoth started paying content creators for a limited time license to their content. In a statement
If Facebook succeeds in getting more people to watch its original series on its platform, it could help the company solve a major issue they are facing: Having too many ads. The company has acknowledged its NewsFeed is growing overstuffed with ads. If people watch shows, they’ll be spending more time on Facebook. That would allow the company to charge more for ads because users are more engaged, without having to increase the number of ads on the platform.
The Internet moves quickly.
It’s time to position.