At Comcast’s Cable Networks, Staffers Express Uncertainty, Disappointment and Skepticism — but Also Optimism — About Looming Spin-Off

As a long-time movie enthusiast and someone who has witnessed the evolution of the television industry over the past few decades, I find myself both intrigued and saddened by the impending spin-off of NBCUniversal’s cable networks from Comcast.

As a movie enthusiast, I’m curious about the general sentiment among the staff at NBCUniversal cable networks and businesses that Comcast plans to separate next year. How do they feel about this upcoming change?

It’s not surprising that there’s some apprehension surrounding the formation of “SpinCo,” a new entity split from Comcast and NBCU, as many questions remain unanswered about its future. There’s also disappointment over the view that SpinCo is seen as a collection of lower-quality assets, as one employee described it – the casualties of the streaming war. Essentially, Comcast is choosing to divest from its declining cable networks (other than Bravo) in order to enhance the growth and value of its primary business, with a focus on Peacock.

Under the new umbrella, SpinCo will encompass television networks like MSNBC, CNBC, USA Network, Oxygen, E!, Syfy, and Golf Channel, as well as digital platforms such as Fandango, Rotten Tomatoes, GolfNow, and SportsEngine. The name for this upcoming entity has yet to be determined and it may take approximately a year for its separation from NBCU.

Executives from NBCUniversal are coming to terms with the reality that the golden era of cable TV is behind us, and now it’s about managing a declining business effectively. It’s not surprising that Comcast would be the first media conglomerate to take this approach; the company has a history of shutting down underperforming cable networks, such as Cloo, Style, and Esquire, rather than keeping them as ‘zombie channels’, which some competitors have opted to do.

There’s a feeling of disappointment that NBCUniversal might have kept producing unique content for channels like USA and Syfy, but as they moved their budget towards Peacock, it seems to create a kind of cycle where that happens. This is where the frustration arises: If different leadership were in place, maybe E! or Syfy could have adapted like Bravo did. “There’s certainly a sense of being let down,” this executive admitted.

Simultaneously, some individuals preparing to board the SpinCo vessel express doubts about the financial future of SpinCo, led by CEO Mark Lazarus, who was previously chairman of NBCUniversal Media Group. This uncertainty arises even though Lazarus and Comcast executives have emphasized that the new company is geared for growth and could potentially acquire additional media assets.

A seasoned network staff member expressed doubts that most employees, including themselves, fully trust this company as a publicly-traded entity.

It’s been noted that certain employees believe the cable networks have been overlooked due to Comcast-NBCU’s broader strategic objectives. They now anticipate these networks will receive more attention and care like a cherished pet, or TLC. Despite a decline in viewership and revenue, these networks continue to turn a profit. However, these profits are being channeled towards Peacock and the theme parks, according to one employee. There seems to be no plan for reinvesting these profits back into the cable networks.

Another employee at one of the SpinCo brands echoed that point: While “there’s a lot we’ll miss [about being part of NBCU], there is excitement about the potential for further investment in our businesses.” This staffer added that they have “a lot of respect for and belief in Mark Lazarus and Anand Kini, so with the new company under their leadership there is a lot of optimism.” (Kini, currently CFO of NBCUniversal and EVP of corporate strategy at Comcast, who is taking on the role of CFO and chief operating officer.)

Employees have expressed a sense of being taken aback, given that certain sectors of the company are experiencing downturns and reduced funding, while NBCU recently unveiled an impressive new campus on its Universal City site – complete with numerous upgraded facilities and benefits for its employees.

At a meeting with CNBC employees last week, Lazarus spoke about the need to diversify the revenue base. The business news network operates CNBC Pro, a premium subscription service that offers an array of exclusive content. But it could do more. As part of SpinCo, there’s a possibility that CNBC could cut deals to bundle the network with partners that wouldn’t even be considered under NBCU’s Peacock-centric lens, said one CNBC staffer, suggesting a hypothetical deal with Warner Bros. Discovery’s Max.

On Wednesday, Lazarus conversed with members of MSNBC’s team, which included prominent figures such as Rachel Maddow and Katy Tur. Some attendees were taken aback when Lazarus hinted at potential changes to MSNBC’s name and iconic rainbow-peacock logo following the spin-off. Moreover, he failed to provide clear answers about how MSNBC would disentangle its news gathering procedures from NBC News.

As an avid follower, it’s fascinating to see numerous NBC News personalities gracing MSNBC’s daytime lineup, with many shows sharing the news-gathering duties of NBC News. At CNBC, though it maintains a certain level of independence from NBC News, there’s been an effort to foster closer collaboration between the two entities. However, with the recent spin-off decision, I find myself feeling a sense of resignation, as if all the integration work we were asked to do with NBC was ultimately pointless, according to a CNBC staffer’s statement.

As a devoted film fan, I can’t help but feel a pang of disappointment upon hearing the news that some perks previously enjoyed by Comcast employees, such as Universal theme park tickets and complimentary broadband and cable TV within Comcast service areas, might no longer be extended to us at SpinCo. However, I find solace in the thought that Comcast’s chairman and CEO, Brian Roberts, will still hold a third of SpinCo. Perhaps this could mean we may still reap the benefits of free Comcast internet, fingers crossed!

Within NBCUniversal’s production units, there isn’t significant worry about the cable spin-off for several reasons. Firstly, as most programming work has been concentrated on NBC, Peacock, and Bravo, the formation of SpinCo doesn’t necessitate a major shift in focus. Secondly, there is some relief that finally, there is clarity regarding who is managing the entertainment sector, with Donna Langley firmly in charge while Lazarus moves to oversee the cable spin-off. As one executive stated, “There’s now a clear decision-making process at the top of the platform, which is particularly beneficial when we’re developing shows and seeking clarity.

As a devoted admirer, I’m thrilled about the latest change that places Langley in charge, reuniting marketing and creative forces on the TV front for more seamless show launches. Moreover, having one supreme leader overseeing both prime-time productions (Langley’s domain) and late-night shows (reporting to Lazarus) promises a smoother operation at NBC, making things more organized and efficient.

On November 19th, a collection of current and past NBCU executives convened in Los Angeles for dinner to honor Bonnie Hammer, a TV industry titan who has spent years leading and managing NBCU’s general-entertainment cable networks. This is her final year with the company as she prepares to retire when her contract ends at the end of 2024. Remarkably, this gathering took place on the same day that Comcast announced its plans for a cable division spin-off. While the timing was purely coincidental, the significance of celebrating Hammer, once known as the “Queen of Cable,” was not lost amidst the news about NBCU’s upcoming cable separation.

— Brian Steinberg contributed to this article.

2024-11-26 00:47

At Comcast’s Cable Networks, Staffers Express Uncertainty, Disappointment and Skepticism — but Also Optimism — About Looming Spin-Off

Read More

Minority Mindset