Time Warner will invest $100 million in producing TV-like shows and advertising on Snap Inc.'s Shapchat over the next two years, in a push by the the media giant to reach young audiences on the social network, according to a person familiar with the matter.
The deal will see Time Warner make shows for Snapchat in a range of genres, including scripted dramas, comedies and documentaries, according to a statement from both companies. Time Warner's properties like HBO, Turner and Warner Bros. will also invest in advertising on Snapchat.
The partnership will help boost the number of shows on Snapchat, which are three- to five-minutes long, to three a day from one. Eventually, New York-based Time Warner will make as many as 10 shows a year, according to the person, who asked not to be identified discussing private information. Warner Bros. will likely market its upcoming movies on Snapchat as part of the deal and revenue from ads sold during the Time Warner shows will be split evenly with Snap, the person said.