Shares of Snap Inc. SNAP gained more than 5% in morning trading hours Thursday after a new report suggested that the company has several deals in place with major media companies to deliver content for its new live TV concept.
According to The Wall Street Journal , Snap has already inked deals with Comcast's CMCSA NBCUniversal, Disney's DIS ABC, A&E, Discovery, and the NFL. Apparently the social media innovator is also in talks with CBS CBS and Twenty-First Century Fox FOX and will soon announce an official deal with Scripps Network Interactive SNI .
Snap is quickly putting together an impressive lineup for its new television-like platform for Snapchat, its popular disappearing-picture messaging application. The new idea will feature three to five minute shows made exclusively for the app.
Snapchat TV puts the company in direct competition with Twitter TWTR , a social media giant that has not really been considered a threat to Snap thus far. Twitter's traditional micro-blogging platform is different enough from Snapchat, but the Jack Dorsey-led company is also working on its own TV-style service.
However, it looks like Twitter is trying to focus on 24/7 news programming, while Snap will work to add something new to already-popular TV franchises. Although Twitter's deal to livestream some NFL games last season was a bit of a dud, the company is rebounding well. Earlier this week, shares of Twitter popped on the news that it was set to partner with Bloomberg to deliver non-stop financial news coverage (also read: Here's Why Twitter Stock Soared Today ).
Of course, Snap's new plan is probably more of a response to the increased competition from rival Facebook FB . Shortly after Snap's blockbuster IPO, investors grew concerned about Facebook's repeated efforts to copy Snapchat's core platform.
As of today, all of Facebook's major entities-including Instagram, WhatsApp, Messenger, and the standard Facebook app-include a feature that mirrors Snapchat's popular "Stories" section (also read: Facebook Unveils More Snapchat-Inspired Features ).
The prevailing argument from investors focused on a need for Snap to make its Snapchat application unique again. Will Snapchat TV do just that? Well, it's certainly a new offering, but we'll have to wait and see whether it resonates with users or not.
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