Technology

Facebook will cut its budget for original content and major sports events rights, says The Information

A source told the news website that Facebook's streaming service, Facebook Watch, will focus on talk shows and sports leagues

Facebook Watch icon on a smartphone screen
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According to the news website The Information, Facebook is changing its strategy for its Facebook Watch video service, and is pulling back on expensive original shows and major sports events rights.

Last week, according to Engadget, the social network reached a deal with the PGA Tour to bring daily recaps and highlight videos, rather than live coverage, to Facebook Watch. It also recently canceled two of its original shows, such as Limetown with Jessica Biel.

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Tom Dotan and Jessica Toonkel, staff editors from The Information, wrote that the budget for Facebook Watch is likely to continue to increase, to $1.4 billion this year–in 2017, the amount invested on content was $1 billion.

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But according to a person familiar with the matter, the company will use the amount to produce contents such as talk shows, licensed clips from TV networks and sports leagues. Buying major sports events transmission rights will not be Facebook’s main goal for its streaming service anymore.

Last December, Facebook announced that a deal for featuring exclusive shows from three Brazilian television stations: Rede TV!SBT and Grupo Bandeirantes. It seems to be a move compatible with this news strategy.