Report: Snapchat Changing Discover Business Model
Our Take:
Snapchat no longer wants to share ad revenue for the content on its Discover section that’s provided by media companies, according to recode. Instead, it wants to pay content providers a licensing fee up front and then collect all ad revenues for itself. That’s a change from its previous business model, where publishers could sell ads against their own content (and Snapchat could sell their own ads on it as well). While some Snapchat partners are OK with the new terms, as they’ll receive a guaranteed sum up front, others may not be happy with a model that requires them to relinquish control of how their content is sold. All this is happening, the article notes, with a 2017 IPO on the horizon. Read more at recode below.
Evan Spiegel has a new deal for “Discover” publishers: We pay you up front, and we keep all the ad money.