The dynamics of the world have changed significantly over the last few years, since the internet took the world by storm. We have seen a dramatic shift in the way media and entertainment is consumed. People are not dependent on their cable TV anymore. The younger brass is rather opting for online content. This is why cable companies are now investing in online content companies to get a share of this expanding pie. The latest development on this front comes from the house of Time Warner. The Turner division of the company has invested about $15 million in the popular online platform, Mashable. Time Warner Investments, R&R Venture Partners, Updata Partners, Mike Lazerow, and David Jones are also a part of this round of funding for Mashable.
The investment from the cable giant entails that TBS and TNT channels, which fall under the Turner division, will be working alongside Mashable to create and distribute new video content. The deal brings together Mashable and Turner to work on new advertising avenues and also to explore new technology in the Industry.
This move by the media giant can be seen as a step towards adapting to the changing content consumption patterns of the users. The new generation of cord cutters has forced the cable companies to find new possible areas of revenue, and adapt to the changes happening in the market. With this deal, the company will also get to use the Velocity Platform of Mashable. It is a software tool that can make predictions about the viral content on the internet. By collecting data from various sources, it is able to indicate as to what content has a high probability of going viral.
Founded by Pete Cashmore in 2005, Mashable has created a huge fan base for itself over a decade. Online content has been constantly evolving and in consideration of this trend, Mashable created a new dedicated division last year for producing video content. The video content segment itself has been growing by leaps and bounds. This format is seeing some amazing growth and many digital media companies have dived head first into creating such content for their users. Whether it is BuzzFeed, Vox Media or Mashable, they are all creating more interesting and engaging content to get the traditional networks interested in funding them. Funding not only helps them in expanding their capabilities to produce more videos, but might also help them in creating an entirely new channel for making a mark on traditional television. This will bring them to a much wider audience and help them take advantage of significantly better advertising opportunities.
For Mashable, the funding comes as a huge push to improve their current offerings. It will be expanding its production capabilities to come out with more video content in the future. Possibly, these will also be broadcasted on traditional television. In March, Mashable was in talks with NBC Universal’s Bravo for creating multiple web-series. This was their first move towards producing content for a traditional television channel. Moreover, this has given them a boost to really scale up their advertising capabilities. If all these plans are executed as planned, then Mashable will be able to command a much larger audience and greater revenue in the coming years. Kevil Reilly, who is not only the President of TBS and TNT, but also the Chief Creative Officer for Turner Entertainment, is set to also become a part of the management at Mashable. This is a great addition. All that experience and ideas flowing in from an industry biggie, everything looks great for Mashable.
Mashable and Time Warner Cable coming together spells good news for their audience as well. There will be better and much more easily available content for them to enjoy. The user base for online media is only going to expand and these market players already know that. Social media platforms like Facebook have also made it easier to push such content. The subscribers on these hugely popular platforms are consuming more and more video content. So, it makes sense that the media barons like Comcast and Time Warner would want to target those consumers.
Both the traditional cable provider, Time Warner, and the digital media producer, Mashable, stand to benefit from the deal. Such deals have become a commonplace in the industry of late. Last year too, NBC Universal, which is an arm of Comcast Corporation, invested a whopping $200 million in both BuzzFeed and Vox Media. These digital media firms have also seen an accelerated growth in their short video content production. Though Time Warner Cable just got bought out, you can check out other options for cable television use now.