Welcome to SpinCo

As a long-time television enthusiast who has seen the evolution of networks from their humble beginnings to their current state, I can’t help but feel a sense of nostalgia as NBC moves into a new phase with the spin-off of its cable holdings. It’s like witnessing the end of an era, one that was filled with iconic shows and memorable characters.

The era of NBC under Kabletown, a subsidiary of Comcast, is transitioning – in fact, it’s moving towards a completely new phase. In December 2009, many predicted this change when Comcast announced the deal that would eventually give them full ownership of the legendary network, NBC, and its various cable channels. This week, nearly 15 years later, Comcast revealed their decision to separate most of their cable TV assets into a new independent company called “SpinCo” for now. It seems Jack Donaghy may have shed some tears somewhere over this news.

These recent changes at NBC and its streaming service Peacock seem to herald the conclusion of an era, but it’s uncertain if there will be significant day-to-day differences for viewers immediately. The separation of entertainment channels like USA Network, Syfy, E!, and Oxygen from NBC and Peacock is essentially acknowledging something we’ve understood for some time: The major cable brands are not holding as much value as they used to.

As a devoted movie enthusiast, I get it: More than 50 million households continue to subscribe to traditional cable services. But let’s be real, most of us are hanging on for the convenience (like having a physical DVR or a crystal-clear signal), the sports and news content, or the select premium channels that we simply can’t live without, such as Hallmark Channel, TCM, or those beloved NBCU networks that aren’t abandoning the Peacock just yet, like Bravo.

The fall in worth of these once powerful cable properties can be attributed, to some extent, to the influence of the transition to streaming. However, much of this decline is also due to companies such as NBCUniversal intentionally hastening the demise of cable by withholding resources from their networks over the past five years. Instead of investing in producing more captivating shows like “Suits” or the first season of “Mr. Robot” on USA Network, NBCU (and other media giants) diverted that money to fuel their streaming platforms like Peacock and Paramount+, as well as Hulu to a lesser extent. This decision has led to fewer reasons for viewers to continue watching USA Network, as opposed to investing in content creation for these streaming services.

It’s accurate that ratings were decreasing as these companies were still producing new shows. However, by essentially abandoning original content and dismissing executives responsible for marketing and scheduling, NBCU and others prematurely put their cable networks into a state of terminal care. These channels no longer hold value due to the focus on chasing after the latest trend (streaming), instead of investing time in maintaining existing relationships. Granted, even with improved management and increased resources, it’s unlikely that these offloaded cable networks would be flourishing at this moment. I believe a more balanced approach towards streaming and preserving the cable ecosystem could have prolonged its vitality for another decade.

From a movie buff’s perspective, here’s my take on the situation:

So, Who Wants SpinCo?

Regardless of their final names, CNBC and MSNBC, along with existing agreements for the entertainment assets, can serve as a strong foundation for SpinCo’s transformation to align with current business realities. This evolution will likely involve growth: Comcast executives have been clear that SpinCo may need to collaborate with other companies to prosper, either by acquiring additional troubled cable networks or forming joint ventures with other entities. It’s not difficult to envision potential partnerships.

Recently, discussions about a possible joint venture between Warner Bros. Discovery (WBD) and Comcast were circulating in the industry. However, nothing materialized from these talks, and if a partnership does occur, it might include WBD collaborating with NBCUniversal (NBCU) and Peacock. Additionally, WBD’s CEO, David Zaslav, could potentially consider divesting some of his less profitable cable channels. For instance, TNT and TBS might be combined with USA Network and Syfy. Another possibility is that CNN could offer news content to MSNBC if NBC News ever decides to fully separate itself from MSNBC. Some speculate that CNN and MSNBC might even merge to create a stronger competitor to Fox News, although there’s been no indication that this is being considered by any company.

Imagine a situation where Paramount Global, currently undergoing transformation under its new owners Skydance Media, considers a partnership with SpinCo, offering its CBS News personnel for use on MSNBC and CNBC. After considering that Anderson Cooper of CNN is allowed to appear on 60 Minutes, wouldn’t it make sense for someone from Paramount’s D.C. bureau to deliver live reports from the White House on MSNBC?

Again, this is just me spitballing. When it comes to what happens next with this new cable-centric company, I don’t pretend to know the answers — and apparently Mark Lazarus, the exec in charge of SpinCo, doesn’t either. He told MSNBC staffers Wednesday he’s not sure where the channel will get its news content from going forward, or even whether MSNBC and sister net CNBC will get to keep their current NBC-ish names and logos. These are pretty big details, and it’s telling that they’ve yet to be worked out.The bottom line with SpinCo right now is: Expect the unexpected.

2024-11-22 01:54

Welcome to SpinCo

So, Who Wants SpinCo?

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