Camera app and services provider Snap Inc. (SNAP) has signed a $100 million deal with Time Warner Inc. (TWX) to bring popular shows from its roster, such as "Full Frontal With Samantha Bee" and "The Ellen DeGeneres Show," to the Snapchat messaging app, according to a report in The Wall Street Journal.
Time Warner will create as many as 10 original shows short-length shows for Snapchat. Time Warner will also buy ads for its content divisions – HBO, Turner and Warner Bros. – on the messaging platform.
Gary Ginsberg, Time Warner’s executive vice president of corporate marketing and communications, told the WSJ that the shows -- approximately three to five minutes in duration -- will help drive new users toward new programming on its cable networks as well as for its direct-to-consumer streaming services. Snapchat is especially popular within the 18-24 age range, a coveted advertiser demographic. The companies will equally split ad revenue from the programming. (See also: Snap's Big Gamble?.)
Snap has signed similar agreements for original content with other media companies, including Comcast Corporation's (CMCSA) NBC Universal, BBC, Vice Media and The Walt Disney Company's (DIS) ABC Networks. (See also: A SNAP Story: The Revenge of the IPO.)
During its first quarterly earnings call last month, Snap CEO Evan Spiegel attributed the increase in user engagement to 30 minutes primarily to unique content offered on the platform. Imran Khan, Snap's chief strategy officer, said that the company had signed 55 content partners globally. The agreements are meant to accomplish two goals: increase user engagement and make the platform attractive for advertisers, which can display ads against branded content. The WSJ article states that "The Voice," a talent competition aired on NBC, has seen a 45 percent uptick in its viewership ratings since starting an original content series on Snap's platform last August. (See also: Snap: The Stock Faces More Downward Pressure.)