NBCUniversal’s investments this month in Vox Media and BuzzFeed firmly place the audiovisual giant in a strong position to benefit from cross-platform advertising and content distribution. The company this month invested $200 million in each of the two leading digital firms that operate portfolios of sites and are strong players in social media distribution.
The move will make it possible for them to jointly offer advertising packages for major events such as the Olympics and provide new avenues to promote the broadcast and cable programs and motion pictures from NBCUniversal. NBCUniversal is a subsidiary of cable/internet giant Comcast, which itself owns about 14% of Vox Media.
The investments reveal the increasing importance of digital and social media as channels to consumers and that legacy media companies are gaining better understanding how they can be used to advantage. It also indicates that legacy companies like NBCUniversal do not have the capabilities and skills to directly compete effectively with the rising companies in the digital market and are seeking ways to cooperate for joint benefit.