Comcast has revealed plans to spin off its portfolio of cable networks, including CNBC, MSNBC, E!, Syfy, Golf Channel, USA, and Oxygen, into a separate entity. This announcement follows discussions from the company’s October earnings call, during which President Mike Cavanagh hinted at the creation of a standalone company for these networks. The new entity is expected to generate around $7 billion in revenue for the previous year. Mark Lazarus, NBCUniversal’s chairman of the media group, will lead the new company, with Anand Kini, NBCUniversal’s CFO, serving as its operating chief.
The spin-off is anticipated to take roughly a year to complete. Additionally, some of Comcast’s digital assets, including Fandango, Rotten Tomatoes, GolfNow, and Sports Engine, will also be included in the spin-off.
Comcast’s broadcast network, NBC, along with the streaming platform Peacock, will remain under NBCUniversal and continue to operate under the parent company’s umbrella. While Comcast CEO Brian Roberts will retain financial stakes in the new entity, informally known as “SpinCo,” he will not be involved in its day-to-day management.
This move to spin off the cable networks is seen in light of the growing trend of “cord-cutting,” where more consumers are abandoning traditional cable TV for streaming services. In the third quarter of 2024, Comcast alone lost 365,000 TV customers, part of a broader industry-wide drop of around 4 million pay TV subscribers in the first half of the year. Despite the decline in traditional TV subscriptions, Comcast’s cable networks remain profitable, with the media segment seeing a 37 percent increase in revenue in Q3, largely driven by the Tokyo Olympics.
Read More: https://mirrorworldmagazine.com/comcast-to-spin-off-cable-networks-amid-ongoing-subscriber-losses/
