Comcast Corp.’s (NASDAQ: CMCSA) NBCUniversal has announced that the company will strategically invest $200 million in Vox Media, which own a portfolio of websites popular among the younger demographic. NBCUniversal explained the invest will help to better connect with and capitalize on younger viewers, who are more and more steer away from television to the internet.
The new investment in Vox Media will increase the value of the online media company to approximately $1 billion. Vox Media’s portfolio of websites is impressive – eight websites focused on various topics including sports, politics, fashion, technology and food have recorded about 54.1 million unique viewers, 41% of which are between the ages 18 and 34.
NBCUniversal CEO, Steve Burke, said in a statement. “Vox Media has a great portfolio of premium digital brands that deeply engage broad audiences…We are excited to be making this investment and building a collaborative partnership involving editorial content, advertising and technology.”
The transition of the younger demographic from traditional cable TV to other sources online is a major concern of cable companies and investors. Recently Walt Disney (NYSE:DIS) shares have plummeted about 11% after the company’s recent earnings report raised concerns over Disney’s television segment, specifically ESPN. Young viewers cut the cord, saving money on the cable bill finding other sources to watch their entertainment, and media companies are taking measures to adopt.