Time Warner Inc. is going to invest $100 million to produce TV-like programs and advertising on Snap Inc. with the aim of have the media giant’s content reach young audiences via the social network.
It’s a deal that could impact Dallas-based AT&T Inc. eventually, and fits into CEO Randall Stephenson’s vision for the telecom giant.
He has said that the future of video will be on mobile devices where Snapchat dwells.
Time Warner and AT&T are awaiting approval for a deal in which AT&T would acquire Time Warner for $85.4 billion.
Time Warner spokesman Gary Ginsberg told Bloomberg Technology in a statement that the agreement with Snap would drive larger audiences to its programming, and to new direct-to-consumer online services it will introduce.
Those shows will be produced specifically for Snapchat’s vertical format, Bloomberg said.
Snapchat is an app that allows people to send photos and videos that self-destruct after a few seconds, and it already has deals with other networks and studios that highlight their content as mobile magazines or shows, Bloomberg said.
Snap hopes the content will make users spend more time on the app.