A recent report from The Wall Street Journal claims that Facebook Inc (NASDAQ:FB) might invest as much as $1 billion in original content in 2018.
The Wall Street Journal report suggests that the company might soon be joining the ranks of major companies that are aggressively pushing into original content through hefty investments. Facebook is reportedly ready to invest roughly $1 billion towards bringing original shows to its platform. Sources also claim that the figure might change based on the success of the company’s programming. However, the $1 billion will most likely be what the firm will spend next year towards boosting original content on its platform.
“Facebook is ready to shell out $1 billion to become a major hub for videos,” stated the report.
Previous reports about the company’s spending on content stated that Facebook would pay from $10,000 to $30,000 for a short video lasting a few minutes. The reports also stated that the company would spend as much as $250,000 for shows lasting about 30 minutes. The social media giant is ready to spend a significant amount of cash on high-quality content which it believes will make its social platform more appealing.
The move follows in the footsteps of major original content platforms such as Netflix, Inc. (NASDAQ:NFLX) which invests billions in original content. It also comes just a few weeks after it was revealed that software and tech giant Apple Inc. (NASDAQ:AAPL) also has plans to invest as much as $1 billion in original content. This highlights the shift towards original content as one of the strategies that these firms are using to attract a wider audience.
Analysts believe that Facebook’s push towards more original content will most likely lead to an increase in its subscriber base and this will help strengthen its share performance. Such a move is also expected to help the company compete more aggressively will rival platforms such as YouTube which is owned by Alphabet Inc (NASDAQ:GOOGL).
Facebook stock closed the latest trading session on Monday at $173.51.