Yahoo and finance broadcaster CNBC today announced that they’re forming a strategic content alliance. The deal will allow CNBC to significantly expand their online presence, while Yahoo Finance’s content will also now reach CNBC’s broadcast audience. The companies will also create jointly produced, co-branded ‘finance-focused video franchises’.
By working together the companies say they’ll be able to deliver finance content to 40 million unique users in the US each month, which they say is twice as big as the next online competitor, and share Yahoo Finance’s content with the 100 million households that CNBC reaches in the US.
The companies will also co-create co-branded, original videos which will appear on Yahoo! Finance and CNBC.com later in the year. Yahoo Finance’s journalists will contribute to CNBC’s Business Day programming and CNBC clips, news and analysis will be integrated into Yahoo Finance and featured across the Yahoo! network.
The finance sector is an exceptionally lucrative advertising market and is notoriously difficult for new entrants to break into (just look at the continued success of the FT and The Economist). Having a trusted, established brand and credible commentators is key, so the partnership will enable Yahoo to build financial video audiences based around CNBC’s brand.
The move fits with Yahoo’s wider strategy that aims to position Yahoo Video as a more premium service than YouTube. Yahoo Video no longer accepts user-generated content and has started to invest heavily in creating its own content, most notably in Tom Hanks’s animated series, Electric City.