America has been cutting the cord from cable for years. Now Comcast is trying the same
Entertainment giant Comcast is planning to spin off a number of NBCUniversal’s flagship cable properties, including MSNBC, CNBC, USA, Oxygen, Golf Channel, E!, and Syfy — a group of channels that brought in $7 billion in revenue in the 12 months to September 2024, per The Wall Street Journal.
When Comcast first gained control of NBCUniversal in 2011, before streaming became as ubiquitous as it is now, cable networks were considered some of the most attractive assets in media. But in the years since, millions of Americans have cut the cord on cable, canceling their pay-TV contracts in favor of cheaper month-to-month options like streaming — or even YouTube. Comcast has been no exception, shedding video customers like clockwork for the better part of a decade.
Though in terminal decline, cable assets still tend to be very profitable. That’s a source of cash that’s funded much of the investment that legacy media players have poured into the streaming game — a well of profits that Comcast is seemingly willing to give up. Through the spin-off, the media company is betting that its remaining businesses, including the NBC broadcast network, its television shows, and theme parks, will be in a better position for growth. Peacock, the company’s entry into streaming, now has 36 million paid subscribers, up 29% in the last year... but it’s still losing money.
The spin-off plan is expected to be formally announced on Wednesday.
When Comcast first gained control of NBCUniversal in 2011, before streaming became as ubiquitous as it is now, cable networks were considered some of the most attractive assets in media. But in the years since, millions of Americans have cut the cord on cable, canceling their pay-TV contracts in favor of cheaper month-to-month options like streaming — or even YouTube. Comcast has been no exception, shedding video customers like clockwork for the better part of a decade.
Though in terminal decline, cable assets still tend to be very profitable. That’s a source of cash that’s funded much of the investment that legacy media players have poured into the streaming game — a well of profits that Comcast is seemingly willing to give up. Through the spin-off, the media company is betting that its remaining businesses, including the NBC broadcast network, its television shows, and theme parks, will be in a better position for growth. Peacock, the company’s entry into streaming, now has 36 million paid subscribers, up 29% in the last year... but it’s still losing money.
The spin-off plan is expected to be formally announced on Wednesday.
