Filed under: Deals, Competitive strategy, Yahoo! (YHOO), General Electric (GE)
Yahoo! (NASDAQ: YHOO) Finance announced that it will start to show about 20 video segments everyday covering the current action in the market. It has picked three hosts and the project will start next month. It will allow the massive financial web site the chance to give users breaking news from experts via web video, which has become a major part of the web multimedia experience.
The Yahoo! move makes sense because advertising sold in on the internet video brings a premium to display advertising. If consumers watch the new programming, Yahoo! Finance can increase its revenue.
Now, Yahoo! has decided to double down on its plan. It has formed a partnership with GE (NYSE: GE) cable channel CNBC to offer video clips from the network’s shows on Yahoo! Finance.
“We’re bringing together the leader on television with the leader on the internet for financial content,” Scott Moore, Yahoo!’s head of media, told the New York Times.
Yahoo! Finance has almost 30 times the very special visitors that CNBC.com does, so the joint venture will give the cable channel’s programming a much wider audience.
Yahoo! Finance is on to something here. The advent of YouTube and other video sites has gotten internet consumers used to seeing video. CNBC will produce the content that Yahoo! uses for its Television audience anyway, so there is no additional production cost. Whatever money each party makes from the deal is gravy.
Douglas A. McIntyre is an editor at 247wallst.com.
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