Here’s Why Comcast Is Investing In Snap


Recently, NBCUniversal – owned by Comcast (NASDAQ:CMCSA) – invested $500 million in Snapchat’s IPO.  This strategic investment is part of a series of digital media investments being made by NBC. The company has already invested in BuzzFeed, Vox and recently acquired SportsEngine (a platform for youth sports organizations). Comcast is heavily expanding its digital footprint and via NBCUniversal, and the company has spent $1.5 billion in acquiring and investing in digital assets in the past eighteen months. Through this  strategic investment in Snap, NBC can further its partnership with Snap to broadcast its content to younger audiences. As TV viewership shifts towards on-demand and streaming platforms, and social media companies increasingly invest in live-streaming, NBC’s focus on increasing its digital investments  makes strategic sense going forward.

See our complete analysis for Comcast

Adapting To The Future Of Television

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Digital video platforms are attracting an increasing number of viewers; according to eMarketer, in 2017 there will be nearly 730 million monthly digital video viewers, inching closer to the 1.1 billion figure for traditional TV viewers. With this shift in viewership, advertisers are increasing their spend on digital platforms and shifting away from traditional TV. To attract these ad dollars, social media players are looking to increase video content on their platforms. Through its investment in Snap, NBC will get an opportunity to make its content more widely viewed and explore all channels of viewership. Last year, NBCUniversal frequently partnered with Snap, including the production of a pop-up Discover channel during the Olympics featuring content produced by BuzzFeed, which generated over 2 billion views. The company now plans to launch more Snapchat shows, which will ensure that its content reaches younger viewers. A stronger presence on social media can lead to better monetization of the company’s content. Social media giant Facebook has a significant focus on videos and has already launched a TV app to promote viewership of its videos on TV screens. Other competitors such as Snap and Twitter might follow suit as video viewership on social media continues to increase. As consumers look at various avenues to consume content, Comcast can benefit from a strategic investment in a social media platform popular with young consumers.

We believe as the future of TV evolves and social media platforms become increasing popular for video consumption, Comcast’s digital investments and strategic stake in Snap will help the company drive long-term revenues.

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