The company announced that it will pump $100 million into producing content exclusively for Snapchat. Though investors may be shying away from the Snap Inc.’s stock after initial excitement surrounding its IPO, Time Warner’s move signals that content companies are still bullish.
Users can expect to see scripted series—including dramas and comedies—plus documentaries and advertising from Time Warner-owned companies like HBO, Turner and Warner Bros.
Time Warner currently produces about one new 3-5-minute show per day. The deal increase the company’s content to three shows per day shot in vertical format. As part of the deal, Snap will reportedly pocket 50 percent of the ad revenue.
Marketers should take this as a signal that at least the big players see Snapchat as a long-term platform to reach millennial audiences.
As this deal starts to unfold and content is produced, marketers can look to Time Warner to understand what type of content is being produced for the platform, as it will probably be state-of-the-art. That’s because Snap, which stock has struggled since the company’s well-publicized IPO, must be committed to Time Warner’s content working.