Instagram is reportedly considering plans to share a portion of its advertising revenue with publishers who are helping turn the platform into a news content hub.
In a plan under consideration, Axios reported on Tuesday that Facebook-owned social networks will give outlets a reduction in advertising revenue from clips posted on Instagram’s IGTV video platform.
However, Instagram is still looking for ways to indemnify its content for high-profile users, so it’s working cautiously. The company also wants to avoid rushing to trade or offend publishers who are dissatisfied with Facebook’s “bait-and-switch”, the report said.
Instagram has revealed details, but it is reported that certain publishers have made isolated deals to bankroll content. This includes a partnership with BuzzFeed to create the IGTV series and a deal Instagram paid to the social media-focused news agency ATTN. Creating a voting video prior to the presidential election.
Facebook and fellow tech giant Google have faced pressure in recent years to pay publishers for content amid concerns about platforms that suck up advertising revenue from the struggling press.
Instagram’s reported discussions take place about a year after Facebook publishes a dedicated news tab featuring headlines from outlets that receive license fees for using stories. Google announced a similar $ 1 billion effort last month.
Facebook did not immediately respond to a request for comment on Tuesday. The company’s share price fell about 0.7% to $ 277.09 at 1:30 pm.
Instagram is reportedly considering sharing advertising costs with publishers
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