What’s the deal with Meta and BuzzFeed’s $10 million deal?

Last week we announced that BuzzFeed is making the most of AI to generate its quizzes and some copy content. As a result, Facebook parent Meta is paying BuzzFeed millions of dollars as part of an effort to bring more creators to the social-media giant’s platforms, according to people familiar with the situation. 

As part of a deal reached last year that is valued at close to $10 million, BuzzFeed agreed to help generate creator content for Meta’s platforms and train creators to grow their presence online, the people familiar with the situation said. 

The deal marks recognition on both parties’ parts of the importance of the creator economy in which individuals build large social-media audiences by posting videos and other content, and often make money on advertising or brand sponsorships. 

The effort is part of Meta’s plan to increase growth. According to research firm eMarketer, TikTok’s global user base grew 18% last year, while Meta’s Facebook plateaued and its Instagram platform grew 2.75%. Meta in its latest earnings report said nearly two billion people used Facebook daily. 

As for BuzzFeed, they have lost money in recent quarters due to a merger with a special-purpose acquisition company. Early last year, BuzzFeed announced cuts to its news division as it sought to make the business profitable. At the same time, the digital media company announced it would be doubling its creator network.

In 2016, Meta agreed to pay $50 million to a number of publishers, including BuzzFeed, to create live video content for the platform. The social-media giant eventually discontinued the program as its video approach changed which has irritated users as of recent (with users feeling Meta over-prioritises videos post pandemic).

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