NBC to separate from it's cable nets including MSNBC, CNBC

WASHINGTON (AP) — Comcast will spin off many of its cable television networks that were once at the heart of the entertainment giant, with people increasingly swapping 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 business network CNBC and news network MSNBC. Movie ticketing platform Fandango and the Rotten Tomatoes movie rating site would also become part of the new company.

TV broadcaster NBC, including NBC News, and streaming service Peacock will remain with Comcast, as will Bravo, which provides significant content for the Peacock streaming service.

Comcast hinted at 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 the past 12 months ending September 30. According to the company, that’s about 5.5% of Comcast’s total revenue during that period.

The Cord Cutting Effect

“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.”

But he adds that he cannot promise how this new spin-off company will fare independently, pointing again to cable’s “hemorrhaging subscribers and ad revenues” overall.

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.

“As a standalone company with these outstanding assets, we will be better positioned to serve our audiences and drive shareholder returns in this incredibly dynamic media environment across news, sports, and entertainment,” Lazarus said Wednesday.

Comcast expects the new company to have the financial flexibility to be “a potential partner and acquirer of other complementary media businesses.”

The entertainment and cable communications giant said the spin-off is expected to be completed in about a year, pending financing and approval from its board and government regulators.

Shares of Comcast (NASDAQ: CMCSA), based in Philadelphia, were essentially flat Wednesday.

Xfinity, is the trade name for Comcast's cable communications business. The largest cable... — Xfinity, is the trade name for Comcast's cable communications business. The largest cable operator in the United States

Like other cable companies, Comcast has shifted its business emphasis away from traditional cable in recent years toward streaming and other revenue sources, such as its movie studio, theme parks, and home wireless and internet services.

In its most recent quarter, Comcast reported that paid subscribers to its streaming Peacock channel jumped by 3 million, or 29%, to 36 million subscribers. Peacock’s revenue soared 82% to $1.5 billion in the period.

Peacock was launched in 2020. After a confusing, glitchy start, it has taken off recently, boosted in part by the platform’s success and popularity during the 2024 Paris Olympic Games.

Peacock streamed all 329 medal events and over 5,000 hours of coverage during the Games, with viewers streaming over 23 billion minutes of Olympic coverage led by Peacock. That’s a 40% increase over all previous Summer and Winter Olympics combined, Comcast said.

Super Nintendo Land will be opening at Universal Studios Hollywood in 2023.(David Sprague/Universal Studios Hollywood)

Comcast reported revenue of more than $32 billion and a profit of $1.12 per share in its most recent quarter, boosted by the summer box-office success of “Despicable Me 4,” which grossed more than $1 billion worldwide.

The company expects to open its Epic Universe theme park in Orlando in May of next year.