Snapchat Changing Terms for Discover Content Partners (Report)

The wall around Snapchat’s walled garden is about to get a little more expensive for media companies to climb.

The wall around Snapchat’s walled garden is about to get a little more expensive for media companies to climb.

Peter Kafka and Kurt Wagner of Recode reported that Snapchat is proposing radically different terms to media companies providing content for its Discover section.

According to Kafka and Wagner, the messaging application is seeking to pay its content partners a flat license fee upfront, while retaining all ad revenues for itself, much in the same way that television networks acquire programming.

Under the current structure, Snapchat and its content partners share ad revenue.

Sources told Kafka and Wagner that Snapchat is aiming to ink deals under the new terms within the next month.

Kafka and Wagner pointed out that while content partners would be guaranteed payment under the new format, they would not reap the benefits of particularly successful efforts.

Readers: What are your thoughts on this move by Snapchat?