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Comcast Exploring Spinoff of NBCU Cable Networks Into New Company

Why do MSNBC and CNBC have to be audio/video services, why can't they be audio only streaming services with an associated website containing short videos of some of their stories?


Kirk Bayne
If the incentives for Spinco to do that is there. But for now the transition team between Comcast and SpinCo to start the spin off process and SEC approval to do so is underway. Also the issue MSNBC and CNBC has to go through is to lower the median age from 71 to the 25-54 range is the priority MSNBC has to go forward before they could even consider a name change. Yes its going to come in the form of changing pundits on the roster.

But NBC itself got the news part over to NBC News Now via Peacock and MSNBC became more focused on the talk show hosts.

This LA Times article explains a partial factor why Comcast is spinning off MSNBC. Yes the median age part is a factor and it's at 70.

Changing the name MSNBC now would require a massive promotional campaign. Its audience of habit-bound older viewers — the median age is over 70 — may be reluctant to trust a brand they don’t recognize.


The spinoff could also increase pressure on talent salaries, which are under scrutiny across all TV news organizations that are facing shrinking audiences.
 
What will happen to Cozi TV?
Likely nothing. Cozi is not a cable network. It is a conventional TV network distributed over the air, and is part of NBC’s Owned Television Stations division. If you’re seeing it on cable, it is due to the particular carriage agreement between your cable company and the local TV station that airs it as a digital sub-channel.
 
This LA Times article explains a partial factor why Comcast is spinning off MSNBC. Yes the median age part is a factor and it's at 70.

And the median age of Fox News is 68. They don't seem to be going broke, even after paying a $787 million defamation settlement for lying.

Some interesting statistics on the cable news business from veteran media industry analyst Jack Shafer, written prior to the spinoff announcement but with the knowledge that it was likely to come:
The median age of the CNN, Fox and MSNBC audiences is, respectively, 67, 68 and 71. But this isn’t necessarily a bad thing for the industry. The 50-plus age group constitutes 43 percent of the television audience. While it’s true the older demographic’s days are numbered, nature has a way of replenishing its ranks by turning people in their late 40s into cable news-friendly senior citizens.

 
Some interesting statistics on the cable news business from veteran media industry analyst Jack Shafer, written prior to the spinoff announcement but with the knowledge that it was likely to come:

He's absolutely right, and it's why so many cable channels market to the over-65 demo. Think of all the channels that run old off-net TV shows, old game shows, and old movies. Then look at the advertising those shows attract: Drugs, Medicare plans, insurance, and other over-65 products. Meanwhile, cable channels that once attracted young viewers, such as MTV or CMT, are now also running old movies and TV shows. Because nobody under 65 has cable. This is why all of those cable channels are being spun off. Paramount will be doing the same thing very soon.
 
And the median age of Fox News is 68. They don't seem to be going broke, even after paying a $787 million defamation settlement for lying.

A couple of things here. The first is that the FOX business is very different from the NBCUniversal business.

FOX blew off its ancillary cable businesses (FX, National Geographic, its share of Hulu) five years ago---selling them (and the Fox film studio) to Disney.

Having no broadcast network news, the FOX News mothership is tied to its FOX News and FOX Business channels. Yes, they own Fox Broadcasting and a group of O&Os, but the heart of the enterprise is in cable.

In selling its share of Hulu to Disney, it doesn't own its own streaming platform.

NBC's core is broadcast...it can shed cable assets without throwing away the NBC News organization. And it has Peacock for what it hopes will be a robust future in streaming (the jury's still out as to whether Peacock can/will ever get there). And they still own Universal Studios.

The second thing is that we may be about to enter a punitive era of television regulation. While FOX News has lasted through three complete Democratic administrations without interference, there are strong signals from the incoming Republican administration that MSNBC might not get the same treatment. While cable is technically not regulated, Trump has outright suggested that MSNBC's content should be considered in any renewal or possible revocation of NBC's broadcast licenses.

NBC's life gets a lot easier without the cable channels it's spinning.

FOX would have to re-invent itself if it spun its remaining cable channels. And it has a challenge ahead as cable and OTA TV (businesses FOX is invested heavily in) continue their declines and it has to spend money to lease space on a streamer it once made money from (Hulu).
 
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I imagine the one company that's not happy about this spinoff is WBD. They paid billions to get CNN and a bunch of other cable channels at a time when everyone else is abandoning ship.
 
I imagine the one company that's not happy about this spinoff is WBD. They paid billions to get CNN and a bunch of other cable channels at a time when everyone else is abandoning ship.

As pointed out in the Politico article, just because people are cutting the cable cord doesn't mean they don't still watch CNN and cable channels. They just get it through the OTT streaming providers they switched to like YouTube TV, Sling, etc.
 
As pointed out in the Politico article, just because people are cutting the cable cord doesn't mean they don't still watch CNN and cable channels. They just get it through the OTT streaming providers they switched to like YouTube TV, Sling, etc.
Their ratings still aren't great and haven't been since the election. But maybe once Trump returns that will change.
 
That scenario was in an analysis somewhere, but what will WBD end up doing with so many stations...could they spin off some stations as well?
A suggestion, if I might?

You seem to inadvertently cause some confusion on these boards with "station" vs "network."

"Station," to most of us, refers to a local TV license. I think you're using it to refer to what most here would call a "cable network," and perhaps it would be clearer if you used that terminology instead, if that's what you mean to say?
 
A suggestion, if I might?

You seem to inadvertently cause some confusion on these boards with "station" vs "network."

"Station," to most of us, refers to a local TV license. I think you're using it to refer to what most here would call a "cable network," and perhaps it would be clearer if you used that terminology instead, if that's what you mean to say?
Oh, sorry. I knew that from reading this site and try not to make that error. As someone who subscribes to Philo for live TV and listens to terrestrial radio (a rarity in my age group), those blend together, but they are cable networks or channels.
 
A couple of things here. The first is that the FOX business is very different from the NBCUniversal business.

FOX blew off its ancillary cable businesses (FX, National Geographic, its share of Hulu) five years ago---selling them (and the Fox film studio) to Disney.

Having no broadcast network news, the FOX News mothership is tied to its FOX News and FOX Business channels. Yes, they own Fox Broadcasting and a group of O&Os, but the heart of the enterprise is in cable.

In selling its share of Hulu to Disney, it doesn't own its own streaming platform.

NBC's core is broadcast...it can shed cable assets without throwing away the NBC News organization. And it has Peacock for what it hopes will be a robust future in streaming (the jury's still out as to whether Peacock can/will ever get there). And they still own Universal Studios.

The second thing is that we may be about to enter a punitive era of television regulation. While FOX News has lasted through three complete Democratic administrations without interference, there are strong signals from the incoming Republican administration that MSNBC might not get the same treatment. While cable is technically not regulated, Trump has outright suggested that MSNBC's content should be considered in any renewal or possible revocation of NBC's broadcast licenses.

NBC's life gets a lot easier without the cable channels it's spinning.

FOX would have to re-invent itself if it spun its remaining cable channels. And it has a challenge ahead as cable and OTA TV (businesses FOX is invested heavily in) continue their declines and it has to spend money to lease space on a streamer it once made money from (Hulu).

True Fox News has the Fox Nation app and it's presented like it's Hulu, Netflix for conservatives.


I have an idea what you mean it's Fox Broadcasting and the O&O's they have to lease space on Hulu for their prime time shows.

But some of the shows they syndicate goes through Tubi their other app.




Back to Peacock specifically. According to this article NBC's remaining regional sports networks will start appearing on Peacock in 2025. In other words for now those RSN's currently owned by Comcast in San Francisco, Sacramento, Philadelphia and Boston stay with Comcast for now.

In a major play to modernize its local sports offerings, NBCUniversal will reportedly make its four NBC Sports regional networks available to Peacock subscribers in those local markets. Those networks include NBC Sports Bay Area, NBC Sports California, NBC Sports Boston, and NBC Sports Philadelphia; home to high-profile teams like the Golden State Warriors, Boston Celtics, and Philadelphia Phillies.

Per the Wall Street Journal, Peacock could begin streaming these regional sports networks as soon as 2025, though the rollout could be delayed as details are ironed out. One potential plan that NBC executives are discussing is to make the networks available at an additional price through a Peacock add-on.


 
Obviously sports is driving subscriptions for Peacock:



So that's what's behind their decision to offer RSNs to Peacock subscribers. At one time, it was looking like NBC wanted to get out of the RSN business. But not if it drives subscriptions to Peacock.
 


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