Time Warner and Snap Inc. have announced a deal that will bring more advertising revenue for shows designed for Snapchat. The deal is valued at $100 million and Time Warner will create up to 10 original shows designed for Snapchat every year.
Also, Time Warner also announces they will buy ads for HBO, Turner, and Warner Bros. on Snapchat.
The new shows include scripted content, daily news, documentaries, and comedies. The Time Warner productions will be similar to those already aired on the platform and released by other networks on Snapchat.
Currently, Snapchat runs programming that runs between 3 to 5 minutes long in a vertical format. At the moment, there is one new show airing per day. This deal will create about three new shows per day, varying between the different types of genres.
Snap will keep 50% of the ad revenue generated by the shows, and the content partners will be able to keep the other half, according to the Wall Street Journal.
Presumably, the goal of these new shows is to keep users on the mobile application longer.
Time Warner is committed to investing in advertisements from Time Warner businesses including HBO, Turner and Warner Bros. on Snapchat, which is a huge vote of confidence in the social networking company.
“This is an exciting and natural move as we bring together some of our leading video properties and brands with Snapchat’s dynamic platform,” Time Warner marketing EVP Gary Ginsberg said in a statement. “We’re confident this partnership will help drive larger audiences to our shows and to the new direct to consumer platforms we continue to rollout.”
“This partnership is another exciting step as we continue to branch out into new genres, including scripted dramas, comedies, daily news Shows, documentaries, and beyond,” said Snap’s VP of content Nick Bell.
This news comes after Snap’s stock hit a record low point last week. As a result of the news, Snap’s stock rose approximately 2% in late-afternoon Monday trading.