Facebook is trying to go balls to the walls…that is screens
Sports lovers might have a new go to page for upcoming games: Facebook Watch. In a high-priced tug of war, Facebook offered $610 million for the exclusive streaming rights for Indian Premier League (IPL) cricket games within the next five years. Although they eventually ceded to 21st Century Fox’s Star India’s $2.5 billion bid, they had the second highest proposal which ultimately proves how deep the company is willing to reach into their pockets for popular sports content exclusively on Facebook Watch.
While the full budget for Facebook’s latest OTT page has not been released, it has been reported that the social media giant is paying anywhere from $10,000-$40,000 per episode for shorter, small-budget content, to up to $3 million per episode for bigger-budget TV shows. It’s obvious that Zuckerberg is trying to make Facebook a one-stop-shop for all content: live, scripted, and episodic. The company’s CEO also announced earlier this year that the site would attempt to create “anchor content” by buying sports games’ licensing rights. Even though the business’ streaming focus will eventually turn to an ad-revenue-sharing model, Facebook is taking to heart the old adage: “It takes money to make money.”