Cheddar's CASE STUDY

Every so often, a company emerges with the potential to redefine an industry. In the world of digital media, Cheddar Inc. has captured our attention with its innovative approach to business news and general information delivery. Founded in 2016 by ex-BuzzFeed executive Jon Steinberg, Cheddar has positioned itself as a trailblazer in engaging young professionals. We take a closer look behind the scenes through the lens of Cheddar’s business strategies, unveiling what makes this digital media company a standout success.

The Genesis of Cheddar

The journey of Cheddar began with a straightforward but audacious vision: to create a news network that would cater expressly to the millennial demographic. This vision was brought to life by Jon Steinberg, who noticed a gap in the market. Traditional business news channels were not resonating with younger viewers who increasingly turned to digital platforms for their information and entertainment needs. In just a few months after its inception, Cheddar began streaming live business news directly from the New York Stock Exchange. Right from the get-go, it was clear that Cheddar was not going to be just another news network. Instead, it aimed to amalgamate the worlds of news media and cutting-edge technology.

Distinctive Content and Digital Strategy

One of the unique features that makes Cheddar special is its approach to content creation and distribution. Cheddar's primary focus is live and on-demand video content tailored specifically for millennials. By targeting a niche that traditional media had largely ignored, Cheddar was able to carve out a loyal audience. According to Statista, as of 2022, 85% of millennials watch video content on their digital devices daily. Cheddar taps into this trend effectively by providing short, snappy news segments optimized for digital consumption. The company's business model revolves around the strategic production and distribution of high-quality content. Cheddar’s content is not only educational but also entertaining, offering viewers a diverse range of topics from groundbreaking tech innovations to the latest in finance and business. Data from Deloitte's Digital Media Trends Survey in 2021 highlights that 60% of millennials prefer getting their news from digital platforms, validating Cheddar’s approach.

Robust Revenue Streams

Cheddar’s revenue model is as varied as it is robust. The company primarily generates income through advertising, sponsored content, subscription services, and licensing agreements. In an industry characterized by high competition and changing viewer habits, Cheddar's ability to diversify its revenue streams has been a crucial factor in its sustained growth. Advertising remains a significant revenue driver, accounting for approximately 70% of its income, as highlighted by their partnership reports. Cheddar offers a potent platform for brands to reach a young, tech-savvy demographic. Sponsored segments, branded content, and targeted video ads form the core of Cheddar’s advertising offerings. References from experts indicate that digital advertising spending in the U.S. is expected to hit $385 billion by 2025 (eMarketer), signaling plenty of room for growth in this area. Another notable revenue stream is subscriptions. Cheddar provides an ad-free experience for a nominal monthly fee, catering to viewers who prefer uninterrupted content. Additionally, Cheddar’s licensing agreements, where its content is syndicated to other networks, contribute significantly to its income.

Strategic Partnerships

Cheddar's network of strategic partnerships underpins its business model, magnifying its reach and impact. Collaborations with distribution giants like DirecTV, Sling TV, Amazon, Twitter, Facebook, and Spotify have allowed Cheddar to touch an extensive audience base. In particular, their partnership with WeWork has been highly significant. The morning show "Opening Bell," broadcasted live from the New York Stock Exchange floor, not only attracts viewership but also reinforces Cheddar's brand as a serious player in the financial news sector. Venture Capitalists such as Raine Ventures, Lightspeed Venture Partners, and Comcast Ventures have injected substantial funding into Cheddar, bolstering its ability to innovate and expand. The company, having raised over $54 million in total funding since its launch, continues to leverage this financial backing to scale its operations and enhance its technological infrastructure (Crunchbase).

Customer-Centric Value Proposition

The success of Cheddar lies not merely in its innovative content but in its profound understanding of its audience. The company’s value proposition speaks directly to the millennial demographic's desire for instant access to relevant, high-quality content. This demographic values a blend of information and entertainment, and Cheddar delivers. Cheddar is unique because it is ‘digital-first’ and operates with the digital-native millennial mindset. By focusing on real-time news and live streaming, Cheddar fosters a sense of immediacy and engagement that resonifies with younger audiences. According to a study by the Pew Research Center, 73% of U.S. adults under 30 now receive news through electronic means, accentuating Cheddar's digital strategy's relevance.

Final Thoughts

Cheddar's meteoric rise reflects a masterful blend of innovative content, strategic partnerships, and a keen understanding of its target market. By tapping into the shifting habits of millennial viewers and leveraging digital platforms, Cheddar has staked its claim as a modern, tech-savvy news network. Going forward, Cheddar’s commitment to diversifying its revenue streams and expanding its content distribution will undoubtedly play a vital role in its continued success. As we look at how Cheddar has disrupted the digital media space, it offers valuable lessons on the importance of adaptability, customer understanding, and leveraging technology to foster growth and engagement. Cheddar Inc. represents not just a company, but a new chapter in the evolution of news media, and we are excited to see where their journey takes them next.