Snap, Time Warner Sign $100M Content And Ad Deal

Brunilde Fioravanti
Giugno 20, 2017

As part of the agreement, Time Warner will also buy ads on Snapchat for its HBO, Warner Bros. and Turner networks.

The partnership will help boost the number of shows on Snapchat, which are three- to five-minutes long, to three a day from one. Shell Asset owns 0.25% invested in Time Warner Inc (NYSE:TWX) for 95,048 shares.

Snapchat is getting more original shows, this time from media titan Time Warner. The two-year deal will have Time Warner making up to 10 original series for Snapchat each year, and the shows will span genres including drama and comedy, and pull from existing Time Warner properties. During the same quarter previous year, the business earned $1.49 earnings per share.

The company is hoping to increase its daily originals from one show to three shows by yearend. That's less attractive than the 70/30 split between publishing partners and Snapchat, the Wall Street Journal reported, making the deal for the shows great for Snap.

Given young consumers' obsession with Snapchat, creating content for the platform is a "natural" next step for any media company, according to Gary Ginsberg, EVP of corporate marketing and communications at Time Warner.

TWX has been the topic of several recent research reports. Twitter has ramped up efforts for live videos.

The firm has worked with companies, including the BBC, as it broadens the content available.

News of the partnership increases Snap shares by 1.9 percent earlier today. The Time Warner productions will be similar to those already aired on the platform and released by other networks on Snapchat. Meanwhile, both Snap and Facebook are competing to debut fresh video content on their popular platforms, with a potential eye on ad revenue and user growth. Snapchat's user growth and downloads have been down over the a year ago, placing fear in investors and analysts who have watched the stock fall to and hover around its original price on the New York Stock Exchange. In line with the partnerships, the social networking giant hired ex-MTV exec Mina Lefevre and CollegeHumor co-founder Ricky Van Veen.

The Snap rep also cited new research from Greenberg Quinlan Rosner Research that found 31% of Snapchat users in the United Kingdom watch TV for one hour or less on any given day and are harder to research via traditional media than their peers.

The shows will be produced specifically for Snapchat's vertical format - or how people would watch on their phones.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE