Cable TV giant Viacom is branching out into social media after striking a multi-year deal with Snapchat to sell ads on the messaging app.
The pair already collaborate with Snapchat carrying content for Vicaom owned Comedy Central and MTV but this latest deal pushes things up a gear with and could draw more big name advertisers to the vanishing video format.
Under the terms of agreement Viacom will hold exclusive third-party rights to sell advertising in relation to Snapchat content. The old media powerhouse will also take the opportunity to add two new channels to Snapchat’s ‘Discover’ page to make way for a US version of MTV and an International Comedy Central station whilst investing in exclusive content.
Jeff Lucas, Viacom’s ad sales chief, remarked: “We identified early on the similarities in our audience with Snapchat as they were starting out. They realized early on about our access to the ad market in terms of selling against millennials.”
Viacom has been forced to seek alternative growth markets after being hit by distinctly average ratings and a falling share price precipitated by the declining health of its majority shareholder, 92-year old Sumner Redstone.