Facebook Inks Deals Worth 50 Million With Publishers And Celebs To Promote Live Streaming Product
PHILADELPHIA (CBS) -- Facebook claims its users watch 100 million hours of video daily in their news feed. A new report in the Wall Street Journal says the social network is now spending more than 50 million to promote its live video streaming product.
Facebook has signed deals with with nearly 140 media companies and celebrities to create videos for Facebook Live.
According to a document reviewed by the Wall Street Journal, the social network is shelling out over $50 million to promote the service.
The value of the individual contracts vary with 17 worth more than $1 million. Buzzfeed, The New York Times and CNN are the biggest beneficiaries. Buzzfeed is set to receive over $3.05 million to broadcast live video on Facebook for 12 months, The NYT is receiving $3.03 million and CNN is getting $2.5 million.
A handful of celebrities are also being paid to make live video content like Kevin Hart, Deepak Chopra, and NFL quarterback Russell Wilson.
The arrangements are a way to encourage publishers to produce a steady stream of high quality videos, but could also keep more of Facebook's 1.65 billion users engaged and on the platform longer. It could also give Facebook an opportunity to tap into digital video as a major revenue source. That market is worth 9.8 billion according to e- marketer.
The Wall Street Journal says "the document isn't a full accounting of all of Facebook's dealings with video creators but it shows the broad scope of the tech giant's effort to promote its Facebook Live product"
Facebook's most watched live video is "Chewbacca Mom" Candace Payne with over 157 million views.
