Facebook Ready To Spend 1 Billion On Original Video Content

That’s a big number, especially when you consider that Netflix – a company that specializes in video streaming – made headlines recently for its intention to drop $7 billion on its own original content. The idea is that Facebook would directly fund original video content now, with the goal of eventually paying nothing for such content and compensating creators with shares of ad revenue – with as much as 45 percent of that revenue going to creators of video content. Here’s Facebook’s VP of media partnerships Nick Grudin explaining the model to The Verge: Facebook is not only hoping that you’ll watch shows on its Watch platform the way you’ve grown accustomed to watching shows on Netflix for hours, but that it will also become more social and interconnected. As Product Management Leader Daniel Danker put it: Whether or not this project and Facebook’s $1 billion investment pays off remains to be seen, but it’s clear that Facebook isn’t afraid to spend some money to achieve its dreams of Total Facebook Entertainment, even if it means trying to siphon off some of Netflix’s addicted viewers.