Facebook reportedly planning to spend $1 billion on original TV

PanARMENIAN.Net - Facebook Inc. is loosening its purse strings in its drive to become a major hub for video.

The social-media giant is willing to spend as much as $1 billion to cultivate original shows for its platform, according to people familiar with matter, The Wall Sreet Journal reports.

The figure, which could fluctuate based on the success of Facebook’s programming, covers potential spending through 2018, one of the people said.

The investment would far outpace Facebook’s previous outlays on video content, including its live-video deals last year. It also signals Facebook’s readiness to spend more than before to become what Chief Executive Mark Zuckerberg calls a “video-first” platform.

Facebook is trying to set itself apart from a crowded market with programming that its two billion monthly users will want to discuss—preferably on the social network. It also is interested in deepening engagement around sports, which already spark conversation on Facebook.

The company recently bid more than $600 million for the digital rights to stream cricket matches in India from 2018 to 2022, according to a tweet by the Indian Premier League.

Facebook ultimately lost its bid to 21st Century Fox Inc.’s Star India, which bid $2.6 billion for broadcast and digital-streaming rights. 21st Century Fox and Wall Street Journal parent News Corp share common ownership.