Comcast has officially announced its decision to spin off several of its cable network channels into a new, separate company. This move will include well-known networks such as USA Network, CNBC, MSNBC, E!, SYFY, and the Golf Channel. Along with these cable networks, the new company will also encompass Fandango, Rotten Tomatoes, GolfNow, and Sports Engine. However, Comcast will retain control over NBC, Peacock, and Bravo.
Mark Lazarus, the current chairman of NBCUniversal Media Group, will take on the role of CEO for the new company, while Anand Kini will serve as CFO and chief operating officer. This strategic decision follows Comcast’s prior announcement during an earnings call about exploring the possibility of a cable network spinoff. The move aligns with the broader TV industry trend of consolidating linear channels due to declining viewership and revenue.
Industry analysts, such as Ross Benes from eMarketer, believe that this spinoff will make it easier for Comcast to focus on its more profitable internet service provider (ISP) and mobile divisions. Benes suggested potential buyers for the spun-off networks might include private equity firms or other media conglomerates. Private equity firms might look to extract remaining value through cost-cutting, while media conglomerates may seek to enhance their streaming or linear TV offerings.
The spinoff is also expected to impact the relationship between Peacock and NBCU cable stations, as these stations will no longer directly feed their programming to Peacock under new ownership. However, Peacock is likely to maintain its strong reliance on content from the NBC broadcast network. Experts like Mike Proulx from Forrester suggest that this move signifies Comcast’s shift towards an all-streaming future as traditional linear TV continues to decline.
Overall, Comcast’s decision to spin off its cable networks reflects the ongoing consolidation trend within the TV industry. As streaming services continue to grow and linear ratings decline, companies like Comcast are reassessing their assets to better align with the digital-first future of television. According to Paul Verna from eMarketer, such consolidation is an inevitable outcome for the industry.