Yahoo wants to beef up its leading Finance site with videos, and will add CNBC content to the mix.
On the Internet, Yahoo Finance has been tops among financial websites. The site will provide a boost to cable channel CNBC, last seen chastising Yahoo over its Cyber Monday outage.
Doug McIntyre said at BloggingStocks the addition of videos is a win-win situation for both Yahoo and CNBC:
CNBC will produce the content that Yahoo! uses for its TV audience anyway, so there is no additional production cost. Whatever money each party makes from the deal is gravy.
That gravy comes in the form of lucrative video advertising, with rates charged at a premium. Yahoo could use the boost, as the company has cited weakness in financial advertising in the past year as a hindrance to its financial performance.
CNBC could use the additional exposure too. Although its cable channel draws the eye of the business crowd, the New York Times said web traffic to CNBC.com has been anemic, with 538,000 visitors in November by comScore’s figures.
The deal reinforces the point Jeff Jarvis made in commenting on the Reuters-IHT arrangement, where Reuters will provide the business content to the International Herald Tribune.
Jarvis suggested this model for adding specialist content would free up news publishers to focus on local news. Yahoo gains the niche videos produced by CNBC, improves its Finance site, and both parties profit from the partnership by doing what they already do well.
