Facebook is trying to cut off a piece of the $70 billion television ad business. But in order to do so, the social media giant needs to lean on long time partners like CNN and others to provide a constant stream to Facebook of high quality videos. In return for this arrangement, Facebook is willing to cut publishers in on the revenue just as long as Facebook controls all the ad sales. Naturally publishers like CNN are skeptical of such an arrangement and so this request from the social giant is straining some relationships as some publisher are unable to see the mutual benefit. Some are even threatening to decrease their Facebook commitments as more and more view arrangements with Facebook to be one sided.
Said Andrew Morse, general manager of CNN’s digital operations:
“For them, these are experiments, but for the media companies looking to partner with significant commitments, it gets to be a bit of whiplash.”
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