SpinCo: Inside Comcast’s Plan To Thrive In A Post-Cable World
A number of cable networks will soon have a new home.
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Subscribe for free to get more stories like this directly to your inboxIt’s no secret that the home entertainment market has changed a lot over the past decade or so. The rise of streaming platforms gave way to a surge in so-called “cord-cutters,” or people who trade cable TV for on-demand services like Netflix.
That means companies that own and/or broadcast cable networks have been witnessing the real-time demise of their industry for years — and now one of the most prominent among them is taking action.
The SpinCo solution
Among the properties under Comcast’s umbrella is the NBCUniversal group of cable channels. But this week, the company confirmed that it would be offloading most of those networks in an apparent divestment from the waning cable industry.
A spinoff company will retain ownership of the channels — and for now, Comcast is simply referring to the entity as SpinCo.
“This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape,” explained Comcast President Mike Cavanaugh.
A few specifics were included in the initial announcement:
- NBCUniversal’s Chairman Mark Lazarus and CFO Anand Kini will helm SpinCo’s finances and operations.
- Among the channels moving to the new company are CNBC, MSNBC, USA Network, E!, Oxygen, Golf Channel, and Universal Kids.
- Among the other assets included in the deal are Fandango, Rotten Tomatoes, Sports Engine, and GolfNow.
- Bravo and Peacock are among the cable-related assets that will remain under Comcast’s control.
“An integrated media company”
The idea for a spinoff has been in the works for a while, and Cavanaugh said this is the right move for the company and its customers.
“Taken together, the entirety of NBCUniversal will be on a new growth trajectory, fueled by our world-class content, technology, IP, properties, and talent — all working in concert with each other as an integrated media company.”
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