Facebook is serious about its plans to become a go-to destination for video — and it’s opening its wallet to do so.

The social network is set to spend up to $1 billion on programming in 2018 in an effort to bolster its new video hub, Facebook’s Watch, according to the Wall Street Journal.

Watch continued its rollout this week, hitting FB’s users in the United States. The Watch tab takes up prime real estate on Facebook’s page, located right below the News Feed and Messenger icons on the left side of its page. Facebook launched its video platform with hundreds of new shows, coming from a myriad of partners, and including stars like Jessica Alba and Mike Rowe.

Also Read: Did Facebook Fudge Its Audience Reach by 25 Million People?

Although its heavily featured shows that run longer than 20 minutes in its initial push — like its “Humans of New York” spinoff or its “Ball in the Family” show chronicling Lakers guard Lonzo Ball and his family — most of the content on Watch have been quick-hit, sub-10 minute programs. Facebook had been offering up to $3 million per episode for premiere content earlier in the summer, aiming for shows like hit drama “Scandal,” and family-friendly comedies.

If the $1 billion figure rings a bell, it’s because Apple just set aside the same amount to jump into original content. The world’s biggest tech company is looking to add 10 shows, including shows similar to Netflix’s groundbreaking “House of Cards.”

Apple and Facebook are joining an increasingly competitive streaming market, where spending big bucks is the name of the game. Netflix is going to spend $6 billion on content this year, according to CEO Reed Hastings, and Amazon Studios is in the same ballpark at $4.5 billion.

Google-owned YouTube is doubling down on its original content as well, with YouTube Red adding a “Karate Kid” series in 2018. A person with knowledge of YouTube’s content spending declined to share with TheWrap an exact figure, but said it’s competitive with major players on how much the company will be shelling out.

6 Tech Giants Shaking Up News, From Jeff Bezos to Laurene Powell Jobs (Photos)

Tech leaders are increasingly intertwined with the news business. While some want to support old properties, one set out to destroy a new one. Here they are.
Jeff Bezos – Washington Post

The Amazon founder purchased the Washington Post in 2013 for $250 million in cash. President Trump has called the paper the “Amazon Washington Post.”

Also Read: Important Update: Amazon’s Jeff Bezos Isn’t World’s Richest Person Anymore
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Chris Hughes - The New Republic

The Facebook co-founder purchased The New Republic in 2012, becoming executive chairman and publisher. However, he sold the venerable political magazine to Win McCormack in 2016, saying he "underestimated the difficulty of transitioning an old and traditional institution into a digital media company in today’s quickly evolving climate."

Also Read: NY Post Roasts Trump White House With Epic Cover, Evokes CBS’ ‘Survivor’ (Photo)
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Pierre Omidyar - The Intercept

The eBay founder is a well-known philanthropist who created First Look Media, a journalism venture behind The Intercept. Inspired by Edward Snowden's leaks. Omidyar teamed up with journalists Glenn Greenwald, Jeremy Scahill and Laura Poitras to launch the website “dedicated to the kind of reporting those disclosures required: fearless, adversarial journalism.”

Also Read: Former Intercept Journalist Arrested for Bomb Threats on Jewish Sites
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Peter Thiel

The PayPal co-founder doesn’t own a news organization, but he makes this list because he essentially ended one -- Gawker -- proving once again the power of an angry billionaire. Thiel secretly bankrolled Hulk Hogan’s sex-tape lawsuit against Gawker Media because he was upset that the website once outed him as gay. Hogan won the defamation lawsuit against the site that sent its parent company into bankruptcy, and Gawker.com is no longer operating.

Also Read: Gawker Media to Sell Flagship Site, Hulk Hogan to Receive 45 Percent of Proceeds
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Mark Zuckerberg – Facebook

OK, so Facebook isn’t technically a news organization… yet. However, the company is preparing to launch its much-anticipated lineup of original content later this summer, and there are also signs that it's on the verge of becoming an even bigger media platform.

Campbell Brown, Head of News Partnerships at Facebook, confirmed last week it’s developing a subscription service for publishers willing to post articles directly to Facebook Instant Articles, rather than their native websites.

Also Read: 3 Ways Facebook Can Jump Into the News Business
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Tech is increasingly intertwined with news, for better or worse

Tech leaders are increasingly intertwined with the news business. While some want to support old properties, one set out to destroy a new one. Here they are.

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