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Snapchat will be launching a tool that allows TV networks to push portions of their live broadcasts directly into the app, The Wall Street Journal reports.
NBC will be the first network to utilize the tool this coming Saturday, broadcasting 2- to 6-minute live segments of sporting events at the Winter Olympics, including skiing and figure skating. This is different from the television network's 2016 partnership with Snapchat, in which NBC featured behind-the-scenes videos and photos from the Olympics on its Discover channel. The messaging app won’t initially include advertising on its live TV broadcasts.
Snapchat’s tool aims to capitalize on the trend of traditional TV broadcasters relying on digital platforms to reach younger audiences. Traditional TV networks are increasingly relying on digital platforms to address the growth of cord cutting. For example, the NFL, which is dealing with double-digit year-over-year (YoY) declines in viewership, recently signed a deal with Verizon that allows it to stream games on Verizon’s digital properties, which include Yahoo and go90.
Snapchat represents a valuable partner for TV networks for several reasons:
- Millennials represent the majority of its user base. At the end of Q4 2016, Snapchat boasted 158 million daily users, and 85% of these users were under 35. Of this 85%, 22% were aged 13-17.
- It’s growing in popularity among teens. Thirty-nine percent of US teens said Snapchat was their favorite social media platform in 2017, up from 24% in 2016, according to Piper Jaffray.
- It’s planning on selling more Shows ads programmatically. In October 2017, Snapchat told its Shows partners it would insert more programmatic ads, as opposed to direct-sold ads, into its Shows, according to Digiday. This could benefit TV networks because it may become easier to fill ad space within Shows programming if TV networks or Snapchat's direct ad sales efforts fall flat.
- And it's been able to draw sizable audiences to its Shows thus far. In Q4 2017, more 13-34-year-old viewers watched an average episode of Face Forward by E! on Snapchat than many of the most popular TV shows over the same period, accordingto Snapchat.
Snapchat’s tool will come shortly after its reported accelerated user growth in Q4 2017. The company reported 187 million daily users in Q4, representing 18% YoY growth versus 16% in Q3 2017, and beating expectations of 184 million. Snapchat’s December release of its “easier to use” redesigned app may have helped spur user growth during the quarter. And this reinvigorated user growth could attract more companies to Snapchat’s live TV broadcasting tool.
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