As someone who has spent the better part of my career navigating the complex and ever-evolving landscape of the media industry, I can’t help but feel a sense of both intrigue and trepidation regarding Comcast’s decision to split NBCUniversal into two separate entities.
Comcast claims they’ve discovered a potential remedy for the issue of their large cable resources, which are experiencing continuous decrease. While addressing this problem, they simultaneously pose numerous intriguing queries.
On Wednesday, it was announced that NBCUniversal’s CEO intends to divide the media conglomerate into two separate entities. One entity will encompass NBC and Telemundo broadcast networks, NBC Sports, Bravo, Peacock, local TV stations, Universal film production, and theme parks. The other entity will consist of a collection of major cable networks such as USA, MSNBC, CNBC, E!, Oxygen, Golf Channel, along with digital platforms like Fandango and Rotten Tomatoes.
The plan, as reported by those knowledgeable on the subject, is to detach the broadcast and streaming assets, viewed as more valuable in today’s market where viewers increasingly opt for on-demand viewing of their favorite videos on platforms like Peacock, Netflix, and Disney+, from the cable services. Although the cable networks continue to generate profit, this sector is experiencing a downturn. By separating from their original base, executives anticipate that the newly independent company could expand by acquiring other television networks that others might want to offload for similar reasons.
If only it were all so easy.
Below, a list of questions that executives at Comcast, NBCU and the new “SpinCo” will have to navigate — the process is likely to take a year! — as they undertake a venture that is likely to draw the constant scrutiny of the rest of the media industry.
*What other cable networks might the freshly independent company aim to acquire? The newly formed Comcast spin-off appears unique among its peers. Unlike its competitors such as Warner Bros. Discovery, it won’t be burdened by excessive debt. Its executives are seasoned veterans, with new CEO Mark Lazarus having held key TV operating positions for a long time. It is expected that the new company will actively seek to purchase assets, based on information from someone knowledgeable about the situation.
It’s clear that traditional cable isn’t the medium of tomorrow, yet the high costs associated with it are undeniable. Two major players in this field, Paramount Global and Warner Bros. Discovery, have acknowledged a decline in the worth of their top cable network assets. In August, Warner Bors disclosed a significant $9.1 billion reduction in the value of its television assets due to challenging market conditions and the anticipated loss of its lucrative NBA game broadcasting deal on cable networks. Shortly after, Paramount Global announced a $5.98 billion charge for impairment as they prepared for their acquisition by Skydance Media.
The newly separated Comcast entity could potentially acquire well-known brands at reduced prices, thereby enhancing the influence of its networks within the marketplace.
As a movie buff diving into the world of news, I’ve been scratching my head these past 24 hours trying to figure out how things will play out. Rumors are swirling that we might be running two separate networks, detached from NBC News’ newsgathering operations. The uncertainty has left many journalists in our group feeling a bit jittery, as there are still plenty of questions hanging in the balance about what this move means for our future roles.
Could MSNBC and CNBC maintain their current operations without the news-gathering infrastructure of NBC News? While CNBC has traditionally operated as a distinct entity due to disagreements among past executives and has aimed to strengthen connections with business news enthusiasts, MSNBC heavily depends on the daily findings and updates provided by NBC News. Many daytime hours on MSNBC are occupied by journalists who are associated with NBC News and Telemundo, such as Chris Jansing, Katy Tur, and Jose Diaz-Balart. Furthermore, contributors and reporters from NBC News often appear on MSNBC broadcasts.
It’s expected that executives will prioritize this matter in the coming year, as suggested by someone privy to the situation. There’s a chance for contracts or licensing deals to be established, allowing access to NBC News reporting, experts, and personalities on the two cable networks. Simultaneously, the spin-off might cause MSNBC to further emphasize its progressive opinion content, which is a significant part of its identity. Meanwhile, CNBC could gain more freedom to cater to its primary audience, without needing to consider NBC News, which has its own business and economy reporters.
During a gathering on Wednesday, the topic of potential changes such as a new name or modifications to the logo for MSNBC arose among the team and Lazarus, who was uncertain about making absolute decisions regarding these possibilities.
It’s possible that new hosts may emerge for Andrea Mitchell’s popular MSNBC noon program, which is set to end in early 2025. It will be intriguing to observe whether her replacement will hail from NBC News’ extensive Washington-based journalists or if a fresh opinion host will step up, potentially pioneering a new direction for daytime programming on MSNBC – something they attempted with Ronan Farrow and Joy Reid in the past.
*Would advertisers on Madison Avenue find it as beneficial to conduct business with two smaller media conglomerates instead of NBCUniversal? NBCUniversal attracts advertisers because it offers a comprehensive platform, encompassing broadcast, cable, films, digital, theme parks, and innovative features such as clickable ads for streaming users and advertising in Apple News.
As a follower, I anticipate that the new spin-off could lead to two smaller companies compared to our competitors, with fewer expansive opportunities. For our cable division, the prospect of selling USA, MSNBC, and other cable networks might become a more challenging endeavor. Over the past “upfront” cycles, advertisers have been shifting their investment from general cable to streaming platforms, and they’ve shown caution towards news networks, especially those that heavily feature opinion programming.
In the past, NBCU leveraged its extensive sports broadcasts, prime-time programming, and late-night lineup to encourage advertisers to purchase cable packages for added support. However, in the future, cable networks will operate independently.
It’s uncertain if the NBCU ad-sales team will continue as a single unit to handle all sales, or if they’ll be divided based on media properties. This decision presents significant challenges, such as having two separate teams of Comcast-backed ad representatives approaching major agencies to sell different sports and entertainment content. The potential issue lies in the reduced ability for these teams to create comprehensive packages, which many advertisers seek due to the need to appear more frequently to reach their target audience effectively.
Why won’t Bravo join in on this journey? Despite facing similar trends affecting cable networks today, Bravo has chosen to remain with NBC.
The explanation primarily revolves around streaming services rather than traditional linear economics. To clarify, Peacock subscribers show a significant interest in Bravo programming and broadcast content. This is based on information from someone knowledgeable about the situation. If NBC’s new focus is on expanding streaming (and boosting broadband sales from Comcast’s substantial cable division), then it might be that Bravo doesn’t fit as well with its cable counterparts.
Despite expectations of improvement, Bravo is not showing significant progress compared to its soon-to-be split relatives. According to Kagan, a market research firm under S&P Global Intelligence, subscribers are predicted to decrease by almost 5% within the next year. This would bring the number of subscribers down to approximately 62.6 million in 2025, as compared to 65.8 million expected in 2024. Additionally, ad sales are anticipated to drop, with an estimated $274 million in ad revenue for Bravo in 2025, representing a 6.5% decrease from the projected $293.3 million this year.
*Is NBCU’s ‘Symphony’ now repeating itself excessively? Since Comcast took over NBCUniversal from General Electric in 2009, one of the main advantages touted for the company has been its capacity to promote and sell both its own TV shows, movies, and advertisers’ products together. This strategy is referred to as “Symphony” by former NBCU CEO Steve Burke – a harmonious melody created from the blending of various elements.
This is the reason why certain major television premieres are highlighted in advertisements aired on channels like E! or Oxygen. You might also notice references to Universal’s upcoming “Wicked” production being featured alongside shows such as “Today” and “Saturday Night Live.
If separate divisions for cable and digital operations exist within NBC (and its spin-offs), coordinating between them might prove challenging. Would these entities need dedicated executives to collaborate across organizational boundaries, similar to the character in “Office Space” who acts as a liaison between clients and technical teams? This scenario evokes memories of the 1999 satire “Office Space,” where a middle manager repeatedly struggles to explain his role as a bridge between customers and engineers: “I handle the customers so the engineers don’t have to! I’m great with people! Can’t you understand that?
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2024-11-20 20:18