Comcast is spinning off into a new company many of its cable television networks that were once at the heart of the entertainment giant, as consumers increasingly swap out their cable TV subscriptions for streaming platforms
Comcast is spinning off into a new company many of the cable television networks that were once at the entertainment giant’s heart as consumers increasingly swap out their cable TV subscriptions for streaming platforms.
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 will also become part of the new company.
Streaming service Peacock will remain with Comcast, as will Bravo, which provides significant content for the Peacock streaming service, and other assets like the NBCUniversal’s studios and theme parks.
Comcast telegraphed the shift last month, before confirming Wednesday that it will spin off assets that generated about $7 billion in revenue over the past 12 months ending Sept. 30. That’s about 5.5% of Comcast’s total revenue during that period, according to the company.
How exactly this split will impact customers is not yet clear. Experts maintain it’s too early to tell, given that Comcast aims to complete the transition over the next year.
Some analysts speculate that the spun-off networks may have more freedom to bring their content elsewhere. That could mean you’ll have more options to find and curate what you want to watch and where — or headaches from juggling several different subscriptions in an already-fractured media landscape.
Wednesday’s announcement arrives as more and more people “cut the cord” on cable, with millions cancelling service subscriptions every year — and instead signing up for streaming platforms.
Paul Verna, principal analyst and vice president of content for market research company eMarketer, said Comcast’s decision to divest itself from most of its cable TV channels is a reflection of that trend.
