Facebook’s New Video Content Deals With Publishers Emphasize Produced Videos (Report)

While the new pacts still include payment for Facebook Live videos, they encourage publishers to create more produced video content

The shift in Facebook’s agreements with publishers for video content, first hinted at in January, appear to be moving forward, “multiple sources” told Kurt Wagner of Recode.

Wagner reported that while the new pacts still include payment for Facebook Live videos, they encourage publishers to create more produced video content on a video-on-demand model.

According to Wagner, Facebook is offering publishers a monthly sum in exchange for a minimum amount of produced video content every month and, while Facebook Live content can be included, it cannot represent more than one-half of that monthly minimum total.

Wagner added that produced videos must be at least 90 seconds long and Facebook Live videos must last at least six minutes to be included in the pacts, giving Facebook the opportunity to add mid-roll ads.

According to Wagner, once Facebook collects revenue from those mid-roll ads to cover its payments to publishers, the social network and the publishers will split the remaining ad revenue on a 55 percent to 45 percent basis, with the publishers getting the higher split.

In January, Wagner reported that several publishers told him the social network is no longer emphasizing Facebook Live video during negotiations, and they did not expect livestreaming deals they inked with Facebook last year to be renewed.

He reported in January that Facebook was pushing longer-form premium video content as part of a larger initiative led by Ricky Van Veen, who joined the company last June after serving as College Humor’s co-founder.

Part of the reason for the strategy shift is that the publishers found that the compensation they were receiving from Facebook did not cover the time and resources they were investing in creating the live video content, Wagner reported in January.

A Facebook spokesperson provided the following statement to Wagner:

As we shared last year, 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. We want to show people what is possible on the platform and we learn best from our partners. With this program, we hope to enable creativity and experimentation with video that is community-driven and takes advantage of the social interaction unique to Facebook. In the long-term, we expect to support partners through a revenue-share model, like Ad Break.

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