Social media network Facebook is ready to invest $1 billion to become a major hub for videos, The Wall Street Journal report said on Saturday.
“The social media giant is willing to spend as much as $1 billion to cultivate original shows for its platform. The figure, which could fluctuate based on the success of Facebook’s’ programming, covers potential spending through 2018,.
The figure is less than what the company’s digital rivals such as Netflix invested. Netflix spent $6 billion in 2017 and Amazon shelled out $4.5 billion.
The company has improved its strategy for video content, including cutting deals for digital TV shows.
Earlier this month, Facebook rolled out Watch service — a redesigned video platform for creators and publishers — for every US citizen who uses the social media platform. The aim of Facebook is to take on Google-owned YouTube. The social media giant last year launched “Video” tab in the US which offered a predictable place to find videos on Facebook.
Facebook is offering different options for discovering video content, including programs and sections like “Today’s Spotlight”, “New This Week”, “Popular Now”, “What Friends Are Watching”, “Most Talked About”, “Suggested For You”, and a special “10 Minutes Or More” spot for long-form videos.
Facebook is primarily highlighting reality shows, which partners are producing en masse since they are cheap, don’t require set scripts and can be watched piecemeal.