April 24, 2017:Report claims Facebook is paying for ‘produced’ video

We’ve been keeping tabs on rumours that Facebook’s video-funding strategy was about to shift from live streams to ‘produced’ (i.e. uploaded for on-demand viewing) video.

Now tech site Recode claims the switch is on.

“Facebook wants to pay publishers to create more produced video as part of a plan to push the company’s new ad products,” it reported.

“The new deals are intended to replace the agreements Facebook currently has with publishers to produce live video, which were signed a year ago… Facebook is offering publishers a monthly sum in exchange for a minimum amount of produced video every month. The videos can be a combination of VOD and live, but live content can’t account for more than half of the monthly tally.”

Recode went on to claim that the videos will make money from ‘mid-roll’ ads that interrupt the content, with the video publisher taking 55% of the revenues.

“We are funding some seed video content from our partners, and are evolving the initial Live deals to include other types of video content we’d like to experiment with,” said Facebook’s spokesperson.

There is still uncertainty around Facebook’s music licensing, so music videos are unlikely to benefit for now: but there may be other kinds of formats that music companies could pitch in to receive some funding.

Stuart Dredge
READ MORE: Marketing News
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