Facebook May Not Renew Deals with Live Video Publishers
Last spring, when Facebook launched live video, it paid multiple big publishers to create live videos. Apparently, Facebook spent around $50 Million for this purpose. The goal was to get the big fish like CNN, The New York Times and Buzzfeed etc. to spread the word about Facebook Live and get it off the ground to compete with Twitter’s Periscope.
Facebook signed one-year deals with these publishers and now that the deals are about to expire, there is no sign that Facebook plans to renew those deals. Some of these publishers say that they will not renew the deals even if Facebook came to them. The reason behind that is that the amount Facebook paid them was not worth the resources, time and effort it took to create those high-quality live videos.
If you are wondering why Facebook is cutting back on its live video even though it focused on it the entire past year, you are right to do so. According to some reports, Facebook is now planning on pursuing more TV-like shows and high-quality videos like the ones you may find on Netflix. Facebook now wants premium quality videos in its news feed to make people more interested in spending time on the platform.
These kinds of videos are a piece of cake for publishers that already make premium quality videos like TV studios and movie houses. But for regular live video publishers, these deals don’t make as much sense. Let’s see what surprises are in store for us in the future of Facebook video.