Thursday, October 20, 2016

Snapchat Revenue Sharing

Snapchat says it’s done sharing with media companies.
The red-hot messaging app wants to make a major change in the way it works with companies that supply it with content for its “Discover” section.
Instead of sharing ad revenue that section produces, Snapchat wants to pay content partners a flat license fee up front and keep the ad money for itself. It’s the same model that TV networks use when they buy programming.
That’s a switch from the terms Snapchat has offered since it launched Discover in 2015. Up until now,it has let publishers sell ads against their own content, and Snapchat has also sold ads against the same content using its own sales team. Splits have varied depending on the deal and who sold the ads.
Other big digital platforms, including Facebook and Apple, have offered similar programs to publishers that provide them content.
The new terms, which Snapchat has started proposing over the last few weeks, means the company will have full control over its ad inventory as it gears up for a public offering.

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