Snapchat and Time Warner Ink $100 Million Deal for Original Content
The two-year deal is one of the largest show development agreements Snap has scored.
PHOTO CREDIT: Getty Images
Snapchat may be known for its disappearing messages, but the company's recent push into TV isn't going anywhere--giving anyone with a marketing budget reason to think twice about the Millennial-focused messaging app.
Time Warner inked a $100 million deal with Snapchat to create up to 10 original shows a year for the social media company, according to the Wall Street Journal. The programming will include scripted drama, comedy and could provide an avenue for Time Warner's premium network HBO to develop shows for the app.
What's more, big TV names like Ellen DeGeneres and Samantha Bee could also appear on the app, the Journal adds. The deal highlights how traditional media companies are trying to engage younger viewers, who are cutting cable cords and prefer shorter programming. (Snap's current shows don't disappear after viewing, but are time-limited and update automatically with new episodes.)
The two-year deal is one of the largest show development agreements Snap has scored to date. It's already signed up companies like NBCUniversal and CBS to create content for its app, a strategic move for big media firms trying to reach younger viewers. The Journal reported that viewership for NBC's the Voice on the app is up 45 percent in its second season.
"These users represent a big opportunity for us because they are harder to reach on traditional media, and they are often highly sought after by advertisers," Imran Khan, Snap's chief strategist, said in a video for the company's roadshow before its public offering.
The $100 million deal also includes an advertising commitment from HBO, Warner Bros. and its Turner networks. Snap will keep half of the ad revenue from programs and its media partners will retain the other 50 percent, the Wall Street Journal reported.