Comcast’s CNBC to produce content for Acorns
Comcast (CMCSA) recently bought a stake in Acorns, a millennial-oriented financial technology startup that also counts PayPal (PYPL) among its backers. In addition to the equity investment, Comcast also struck a content partnership agreement with Acorns. Under the content deal, Comcast’s investing-focused media outlet, CNBC, will produce original videos and articles to share across the Acorns app with the aim of increasing the financial literacy of the people using the app. Acorns boasts some 4.5 million customers. The average Acorns user is around 32 years old and earns somewhere between $50,000 and $60,000 annually, according to a CNBC report. Acorns’ investment service allows customers to automatically invest change from their card or digital wallet purchases.
Access to a young, affluent audience
For Comcast, the Acorns partnership opens another platform to extend the reach of its media content. At the same time, the company is getting access to a young and fairly affluent audience. Traditional media operators like Comcast have been losing television subscribers in what has become known as the cord-cutting wave, forcing them to seek out new ways to reach a new audience.
Comcast generated $28 billion in revenue and made $2.5 billion in profit in the fourth quarter, which ended in December. AT&T (T), Walt Disney (DIS), Dish Network (DISH), and Charter Communications (CHTR) made profits of $4.9 billion, $2.8 billion, $337 million, and $296 million, respectively, in the December quarter. AT&T, a wireless major, bought CNN parent Time Warner to expand its media operations.