Jun 19, 2017

Snap, Time Warner launch $100M content, advertising deal

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Snap Inc. and Time Warner announced a two-year content and advertising partnership Monday, reportedly valued around $100 million. Per the agreement, Time Warner will commit to developing and promoting made-for-Snap shows from brands across its portfolio (HBO, CNN, TBS, etc) and will invest in advertising from HBO, Turner and Warner Bros. on Snapchat over the next two years.

Why it matters: The announcement comes at a crucial time for Snap Inc., whose stock had fizzled down to its $17 IPO price after months of Facebook and Facebook-owned Instagram installing copycat features on their platforms. The company has been at the forefront of launching exclusive original partnerships for its mobile platform, but the heavy content and advertising investment from a major cable company takes their Discover platform business to the next level, which will likely invigorate investor confidence in the brand.

Snapchat's gains in the content biz: To give you a sense of how quickly Snap's original content business is growing, the company says there is currently about one show airing each day on the platform and by the end of this year, Snap expects to have three shows airing per day.

What's in it for Time Warner? Access to Snap's loyal, younger audience that consumes shows differently on its platform than on TV. Nielsen data commissioned by Snapchat shows that Snapchat provided a 16% increase in average monthly reach in content partners' TV audience, compared to a 5% decrease for the six months prior to the partnership. Time Warner says Snapchat's platform "will help drive larger audiences to our shows."

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 2:30 a.m. ET: 1,431,375 — Total deaths: 82,145 — Total recoveries: 301,543Map.
  2. U.S.: Total confirmed cases as of 2:30 a.m. ET: 399,886 — Total deaths: 12,910 — Total recoveries: 22,461Map.
  3. Federal government latest: Acting Navy secretary resigns over handling of virus-infected ship — Trump removes watchdog overseeing rollout of $2 trillion coronavirus bill — Trump said he "didn't see" memos from his trade adviser Peter Navarro warning that the crisis could kill more than half a million Americans.
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  5. Business latest: America's food heroes in times of the coronavirus crisis. Even when the economy comes back to life, huge questions for airlines will remain.
  6. World updates: China reopens Wuhan after 10-week coronavirus lockdown.
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Tariff worries hit record high amid coronavirus outbreak

Data: CivicScience, margin of error ±1 percentage points; Chart: Axios Visuals

Concern about President Trump's tariffs on U.S imports grew to record high levels among Americans last month, particularly as more lost their jobs and concern about the novel coronavirus increased.

Driving the news: About seven in 10 people said they were at least somewhat concerned about tariffs in March, according to the latest survey from CivicScience provided first to Axios.

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Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

New York's death toll from the novel coronavirus surged to its highest one-day total on Tuesday, as the U.S. saw its largest 24-hour spike in fatalities, per Johns Hopkins data. Recorded deaths across the U.S. surpassed 12,900 early Wednesday.

Why it matters: State officials have stressed that lockdowns must continue even if cities begin to see slight improvements from social distancing. Several hot spots, including New York, New Orleans, and Detroit, are expected to peak in the coming days.

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