Snapchat wants to change the way it works with content providers for its Discover section, paying partners a flat license fee and keeping ad revenue for itself.
This change would go against Snapchat’s terms since launching Discover in 2015, which let publishers, as well as Snapchat, sell ads against their own content with the split decided by the deal and who sold the ads.
This development, for which industry sources told ReCode that Snapchat aims to have deals set up within the next month, would be in line with programs offered by other digital platforms like Facebook and Apple, according to industry sources reporting to ReCode.
For Snapchat, the new terms will ensure it has full control over ad inventory, with publishers guaranteed to be paid for custom content created for the app, with the potential to extend beyond the Discover program to a new proposed format called “Snapchat Shows”.
However, the new deal caps the amount publishers could potentially earn, the price of distribution content on platforms instead of keeping it on their own properties.
Earlier in the month, Snapchat altered the app so that user created Stories show up in the app ahead of Discover content. These changes come months after Viacom’s Jeff Lucas was hired to head up the sales team, while Snapchat begins preparation for a 2017 IPO.