For months now we have been hearing that Facebook was working on a video service for cord cutters. Now Reuters is reporting that Facebook has signed deals with Vox Media, BuzzFeed, ATTN, Group Nine Media and others to make shows for its upcoming video service. The service will have both long and short-form content with ad breaks, according to several sources familiar with the situation.
According to the report 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, that Facebook will not own.
According to sources Facebook will pay $10,000 to $35,000 for each show and give creators 55 percent of revenue from ads for shows that run 5 to 10 minutes. For longer shows Facebook will pay up to $250,000. These scripted shows will be owned by Facebook, something both Netflix and Amazon.com have done. Ads will run during both the long-form and short-form shows.
No date has been set for this new video service but Facebook has been gearing up for it. Recently Facebook rolled out apps on many popular players like Fire TV and Apple TV.
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