San Francisco, June 20 (IANS) In order to increase ad spending, Cable television company Time Warner and Snap have entered a deal valued at $100 million for the development of new made-for-Snapchat shows, media reports said.
According to a report in TechCrunch on Monday, the newly created shows will span a variety of genres, including scripted drama, daily news shows, documentaries and comedy.
"The shows will be similar to those already released by other networks on Snapchat, and run 3-5 minutes in a vertical format," the report said.
Snap will take 50 per cent of the ad revenue generated by these shows and the content partners will keep the other half.
As part of the deal, three new shows of different genres will be aired per day on Snapchat.
"While these new shows will definitely tempt users to spend more time watching content in the Snapchat app, they likely won't create the buzz that the social network needs to convince users that Snapchat is the best place to watch new content," the report stated.
Time Warner will also invest in ads from its properties like HBO, Turner and Warner Bros on Snapchat.
The deal comes at a time when Snap's stocks have dipped and reduced confidence to monetise through advertising.
Snap's stock is up 2 per cent on the news, pushing it about a dollar above its IPO price of $17, the report noted.