Friday, July 31, 2015

Even Digital Content Is King

Not satisfied with owning a leading broadcast network, cable networks, and a movie studio, NBC Universal and its parent company Comcast want to own digital content creation companies too.  The latest on their radar are Buzzfeed and Vox Media.  Buzzfeed has positioned itself as a leader in creating social commentary, news, and entertainment with an eye to creating eye-catching, shareable, viral content.  Vox Media has created some well known sports blog along with its recent acquisition of re/code.  In an ironic twist, it is re/code passing on some of this news on the potential partnership plans.  

For NBCUniversal, adding a stable of digital content companies to its video rodeo seems like a good fit.  Synergies between networks, shows, advertising, and promotion could all help drive viewership and usage gains.  But synergy is also a tricky animal that in many cases culture and personal politics can end up building roadblocks to success.  Done well, digital content, like any other content, is king and as many believe is what drives consumers to certain platforms.  Should this deal succeed, it will be fun to watch how it is utilized.