Advanced Television

Comcast cable net spin-off?

October 31, 2024

Comcast is considering a fundamental restructuring of its business, exploring the creation of a separate company for its cable TV networks and potentially seeking partnerships in streaming. This shift comes as it struggles with the ongoing decline of cable TV subscribers while chasing profitability in the increasingly competitive streaming landscape.

Comcast is contemplating spinning off its cable TV networks – including MSNBC, CNBC, Bravo, USA and Syfy – into a standalone company owned by Comcast shareholders. This move would separate the cable networks from other NBCUniversal assets like the NBC broadcast network, Universal studio, and theme parks.

“We’ve got a very strong hand,” said Comcast President Mike Cavanagh during an earnings call. “There may be some smart things to do and we want to study that.”

In addition to the cable net spinoff, Comcast is also open to exploring partnerships in streaming to bolster its Peacock service. The company acknowledges the challenges of achieving profitability in the streaming market and is considering collaborations to enhance its offerings and expand its reach. There have already been reports of a possible Paramount+ and Peacock partnership.

Meanwhile the company revealed Q3 Earnings Highlights: Revenue increased 6.5 per cent to $32.1 billion (€29.5bn), driven by the Paris Olympics and new film releases. Net income fell 10.3 per cent to $3.6 billion due to rising programming and production costs. Peacock added 3 million paid subscribers, reaching a total of 36 million. Broadband revenue grew 2.7 per cent, driven by rate increases.

The company lost 87,000 broadband customers, attributed to the end of the Affordable Connectivity Program. Xfinity Mobile added 319,000 lines, reaching 7.5 million lines.

Reacting to the news, Dan Goman, CEO at Ateliere Creative Technologies, said: “Comcast’s potential spinoff of its cablenetworks signals a long-overdue shift, potentially making it one of the first major media players to put traditional cable on the chopping block. This move draws a clear line in the sand, marking a recognition that linear broadcast is increasingly a dwindling asset and, in many ways, a costly drag on future-focused priorities. By proactively separating from traditional cable networks, Comcast is making a bold commitment to invest its energy and resources into growth areas that align with today’s media landscape driven by digital, on-demand content.”

“Comcast’s commitment to its ‘six growth drivers’ reflects a streamlined strategy aimed at strengthening the core business areas that hold genuine growth potential. This shift embodies a vision I’ve long supported: media giants should consider fully letting go of legacy broadcast models to make room for digital advancements that meet current consumer demands. By shedding the weight of outdated models, Comcast is freeing up resources for more dynamic, consumer-driven content offerings that not only meet, but anticipate, how audiences prefer to engage with media today. If Comcast follows through on this pivot, it could be a defining moment for the industry,” added Goman.

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