Facebook Inc. (NASDAQ: FB) has signed contracts with nearly 140 media companies and celebrities to create videos for its proposed live-streaming service, as the social network positions itself to cash in on a lucrative advertising market it has yet to tap—and to keep its 1.65 billion monthly users engaged.
The company has agreed to make payments to video creators totaling more than $50 million U.S.. Its partners include established media outfits like CNN and the New York Times, as well as digital publishers like Vox Media, Tastemade, Mashable and the Huffington Post, and celebrities including Kevin Hart, Gordon Ramsay, Deepak Chopra and NFL quarterback Russell Wilson.
The idea is to encourage publishers to produce a steady stream of high-quality videos until Facebook figures out a more concrete plan to compensate creators, such as through sharing of ad revenue.
The dollar value of individual contracts varies widely, with 17 worth more than $1 million U.S., according to the document. The highest-paid publisher is BuzzFeed, slated to receive $3.05 million U.S. for broadcasting live between March 2016 and March 2017. Just behind BuzzFeed is the New York Times, at $3.03 million U.S. for a 12-month deal. CNN is third, with a $2.5-million U.S. contract.
Facebook stock decreased 40 cents per share soon after Wednesday's open, to $113.98 U.S., in a 52-week trading range of $72.00 to $121.08 U.S