Wed Nov 20 21:04:14 UTC 2024: ## Comcast Spins Off Cable Networks in Shift to Streaming

**Philadelphia, PA** – Comcast, the entertainment giant, announced Wednesday it will spin off a significant portion of its cable television networks, marking a major strategic shift away from traditional pay TV and towards streaming. The move comes as millions of Americans “cut the cord,” abandoning cable subscriptions in favor of streaming services like Netflix and Amazon Prime.

The newly independent company will encompass numerous channels once central to Comcast’s NBCUniversal portfolio, including USA, Oxygen, E!, SYFY, the Golf Channel, CNBC, and MSNBC. Fandango and Rotten Tomatoes will also be included in the spin-off. Comcast will retain its Peacock streaming service and Bravo, which feeds content into Peacock.

The spin-off, expected to take a year to complete, involves assets that generated approximately $7 billion in revenue over the past year – about 5.5% of Comcast’s total revenue. Analysts suggest this move could be a prelude to Comcast merging with another pay-TV provider to maintain competitiveness in a rapidly evolving market.

While the cable networks still reach 70 million US households, the decision reflects the declining dominance of traditional cable. Comcast CEO Brian Roberts, known for his aggressive acquisition strategy, acknowledged the changing landscape, stating that the streaming market has surpassed cable. The new company will be led by Mark Lazarus as CEO and Anand Kini as CFO.

Comcast emphasized the spin-off’s financial benefits, highlighting the new company’s strong cash flow and flexibility for future growth through acquisitions. Industry experts predict the pay-TV market will stabilize around 50 million households, suggesting continued profitability for the spun-off assets, though the most likely buyers are anticipated to be private equity firms or other media conglomerates. The reorganization also involves reshuffling of leadership roles within NBCUniversal, expanding the roles of Donna Langley and Matt Strauss.

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