Comcast Spins Off Cable Networks (apnews.com) 21
Comcast plans to spin off several of its cable TV networks into a standalone company as it shifts focus to streaming and other profitable ventures like Peacock, theme parks, and broadband services. The Associated Press reports: Those one-time stars for Comcast's NBCUniversal cable television networks include USA, Oxygen, E!, SYFY and Golf Channel, as well as CNBC and MSNBC. Movie ticketing platform Fandango and the Rotten Tomatoes movie rating site would also become part of the new company. Peacock will remain with Comcast, as will Bravo, which provides significant content for the Peacock streaming service.
Comcast telegraphed the potential shift last month as it released quarterly earnings before confirming Wednesday that it will spin off assets that generated about $7 billion in revenue over he past 12 months ending September 30. That's about 5.5% of Comcast's total revenue during that period, according to the company. But there is a shrinking pool of cable subscribers as millions cut the cord and rely increasingly on streaming platforms for entertainment.
Mark Lazarus, current chairman of NBCUniversal Media Group, will serve as the new entity's chief executive officer. Anand Kini, the current chief financial officer of NBCUniversal, will take on the same title with the new company as well as the chief operating officer role. [...] Comcast expects the new company to have the financial flexibility to be "a potential partner and acquirer of other complementary media businesses." The spin-off is targeted for completion in about a year, the entertainment giant said, pending financing and approval from its board and government regulators. "Like millions of US consumers, Comcast finally cut the cord by divesting itself of most of its cable TV channels," said Paul Verna, principal analyst at market research company eMarketer. "The benefits are clear to Comcast. It's dropping money-losing assets from a technology and media empire that will retain its lucrative (internet service provider) business, theme parks, broadcast networks, and Peacock streaming service."
Comcast telegraphed the potential shift last month as it released quarterly earnings before confirming Wednesday that it will spin off assets that generated about $7 billion in revenue over he past 12 months ending September 30. That's about 5.5% of Comcast's total revenue during that period, according to the company. But there is a shrinking pool of cable subscribers as millions cut the cord and rely increasingly on streaming platforms for entertainment.
Mark Lazarus, current chairman of NBCUniversal Media Group, will serve as the new entity's chief executive officer. Anand Kini, the current chief financial officer of NBCUniversal, will take on the same title with the new company as well as the chief operating officer role. [...] Comcast expects the new company to have the financial flexibility to be "a potential partner and acquirer of other complementary media businesses." The spin-off is targeted for completion in about a year, the entertainment giant said, pending financing and approval from its board and government regulators. "Like millions of US consumers, Comcast finally cut the cord by divesting itself of most of its cable TV channels," said Paul Verna, principal analyst at market research company eMarketer. "The benefits are clear to Comcast. It's dropping money-losing assets from a technology and media empire that will retain its lucrative (internet service provider) business, theme parks, broadcast networks, and Peacock streaming service."
Is peacock profitable? (Score:2)
I'm sort of surprised.
Re:Is peacock profitable? (Score:4, Interesting)
It doesn't have to pay for any of the content creation, as that's all billed to other business units. And I doubt they have nearly the hosting overhead, since Comcast is an ISP that has peering agreements with everybody.
I can't imagine it would take a ridiculous amount of subscribers to get to profit.
Re: (Score:2)
We get Peacock for free as a "reward" for being a Comcast internet customer. I'm betting 90% of Peacock's subscriber base are people just like us. But like you said - since Comcast owns NBC, it's not like they're paying anything extra for access to the content.
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We get Peacock for free as a "reward" for being a Comcast internet customer. I'm betting 90% of Peacock's subscriber base are people just like us. But like you said - since Comcast owns NBC, it's not like they're paying anything extra for access to the content.
Also, peacock has bundling agreements, IIRC Waltmart plus offers a peackock supscription as one of the benefits. I do not recall if it is free or heavily discounted, nor if it is premium or premium plus.
Re: (Score:2)
Also, peacock has bundling agreements, IIRC Waltmart plus offers a peackock supscription as one of the benefits.
You're thinking of Paramount+.
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Also, peacock has bundling agreements, IIRC Waltmart plus offers a peackock supscription as one of the benefits.
You're thinking of Paramount+.
You are right, PEacock is bundled with amex (Platinum card) & xfinity
Re: (Score:2)
Peacock like the rest of them loses massive amounts of money. The advertising will start creeping in slowly to fix that.
Not in the case of peacock, as it started with ads in the free (now discountinued) and premium tiers from day one. Only the premium plus tier had no ads
Much like early days of pay TV, it had no ads, then it had ads.
That is a misconception. Cable started with ads from day one. Later on, premium chanels with ads (meaning, channels that you had to pay for on top of your basic fee, eityher alone or as a bundle) were fairly common. Premium channels with no ads (like HBO) (that again, you payed either alone or as a bundle) were a latter adition.
Please see the relevant chapt
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Whatever bro.
Premium plus tier will get ads eventually.
I'd rather have Balls of Steel like Duke Nukem than cristal balls like you.
Not all pay tv in the world started with ads. Sky TV in New Zealand started with no ads.
We are talking about a company in the USoA. Cable TV in the USoA started in 1948. I do not know when did SkyTV started in New zealand, but is suspect it was much, much latter...
You want to pick arguments over semantics, and lose friends? That's your destiny.
It takes two to tango, but, at least, I am not an anonymous... you know what... which ties in nicely with the balls of steel concept in the begining ROTFL
Re: (Score:2)
Everything will get ads.
There's just so much more money to be made with them.
Google and Facebook get something like $15/user from text ads on average, but more importantly the more you use the more they make.
Maybe peacock will try to be like HBO, small amounts of quality content people will pay for, but sadly I think the future is lots of content with ads. Netflix especially seems to be going with being a single source for streaming, and they'll need a way to monetize hours of watching/day.
AT&T also went through this (Score:2)
Wonder how it goes (Score:2)
I mean, ISPs aren't usually popular, but they usually rate better than cancer.
But my guess is fuck-the-customer is just the corporate culture now.
need more pick and play and not forced into big pa (Score:2)
need more pick and play and not forced into big packages that force you to get high packages just to get one thing that you want.
Re: (Score:2)
Keeping streaming makes this harder, but by dropping cable they might be able to be less shitty to customers, and eventually not be one of the most hated companies in the country.
Cable companies have "right of way", all your way to the homes. The HFC is geting less and less "C" and more and more "F" each year, until it will all be "F"iber all the way. Comcast (and other cable companies) fought very hard to go from "Cable Only" to "Cable + ISP", just as well as many an "ISP only" fought very hard to become "ISP + Cable".
There is no way (or is it advisable in a business sense) for comcast to drop the cable part and become an ISP only.
Wanna know what this move is all about? (Score:2, Troll)
Simple. SpinCo will be much smaller, and with fingers in less pies than Comcas/NBC/Universal. Meaning that an aquisition is easier.
Also, SpinCo can also do mergers and aquisitions that would not fly with regulators (even Trump's future regulators) if they were attempted by Comcas/NBC/Universal.
Finally, SpinCo has some interesting IPs, both as back catalogue, as well as stuff that can be developed further.
So, if the opportunity presented itself, they could merge with or acquire (or be acquired by) other sim
New Slogan (Score:1)
"We used to make slow cable, now we just make slow."
Are they keeping their most important asset? (Score:1)
Surely they aren't going to sell off Sheinhardt Wigs though - right?
https://youtu.be/G03R3fvLIhI?s... [youtu.be]