Shares of Snap Inc. jumped nearly 3% on Monday following the news that the maker of Snapchat had entered an agreement to make original shows with Time Warner.
The deal means Time Warner will pay Snap $100 million to develop shows and advertise in the app over the next two years, according to a person familiar with the matter.
The partnership comes at a crucial time for Snap, whose shares sunk last week to its $17 IPO price. Tech giants like Facebook, Netflix, Amazon, and Apple are all increasingly competing for original shows.
Snap typically broadcasts one show a day in its app under a "Shows" header. They all are five to 10 minutes and made in participation with networks like NBC, ABC, BBC, A&E, Discovery, Vice, and others. Shows have collectively drawn "audiences of over 8 million," Snap CEO Evan Spiegel said during the company's latest earnings call.
By the end of 2017, Snap aims to have two to three shows air in its app every day, a representative told Business Insider in May.
"This partnership is another exciting step as we continue to branch out into new genres, including scripted dramas, comedies, daily news shows, documentaries, and beyond," Snap's vice president of content, Nick Bell, said in a statement on Monday.
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