What’s the public mood like for NBCUniversal’s cable network and the business Comcast plans to spin off next year?
As you can imagine, there is some trepidation surrounding the move to separate Comcast and NBCU to form “SpinCo,” and there are many unanswered questions about what happens next. And he’s disappointed by the perception that SpinCo is, as one employee puts it, “a collection of crap,” a victim of the streaming wars. In the end, Comcast essentially said the reason it was letting go of its declining cable networks (minus Bravo) was to improve the growth profile and valuation of its core company, which is centered around Peacock.
SpinCo includes basic cable nets MSNBC, CNBC, USA Network, Oxygen, E!, Syfy and Golf Channel, as well as digital properties Fandango, Rotten Tomatoes, GolfNow and SportsEngine. A formal name for the new company, which will take about a year to separate from the rest of NBCU, has not yet been determined.
NBCU executives past and present are feeling a bit resigned to the fact that cable TV’s halcyon days are over and that for now it’s all about managing a slowly dying business. It should come as no surprise to anyone that Comcast would be the first media conglomerate to go this route. The company has frequently killed underperforming cable networks such as Cloo, Style, and Esquire, rather than keeping them as zombie channels like its competitors.
While it’s disappointing that NBCUniversal was able to continue to invest in original fare for networks like USA and Syfy, the company’s shift of programming funding to Peacock “has become a bit of a self-fulfilling prophecy.” “It’s gone,” one executive said. I sigh. And therein lies the frustration. Under different management, perhaps E! or even Syfy could have made the same transition as Bravo. “Certainly, the atmosphere is a little disappointing,” the executive said.
Meanwhile, some people looking to disembark the SpinCo ship are skeptical about the financial outlook for SpinCo, which is led by CEO Mark Lazarus, a former chairman of NBCUniversal Media Group. That’s despite Lazarus and Comcast executives touting the new company as a candidate for acquisition of other media assets and positioned for growth.
“I don’t think the general workforce, including myself, appreciates the solidity of being a publicly traded company,” said a longtime staffer at one of the planned cable spin networks.
That said, some employees feel the cable network is being “neglected” within Comcast-NBCU’s broader strategic priorities and, as an independent group, is subject to some limitations. I think it will happen. Cable networks are still profitable despite declining viewership and revenue. But the profits are “basically funneled into Peacock and the theme park,” one staff member said. “In terms of reinvestment, you’re not getting anything back” into the cable network.
Another employee who works for one of the SpinCo brands echoed this point, saying: [about being part of NBCU]We are excited about the potential for further investment in our business. The staffer added, “We have great respect and confidence in Mark Lazarus and Anand Kini and are very optimistic about the new company under their leadership.” (Mr. Kini, currently CFO of NBCUniversal and Vice President of Corporate Strategy at Comcast, assumes the role of CFO and Chief Operating Officer.)
While officials admit they are feeling a little whiplash as some areas of the business decline and investment declines, NBCU has just opened a stunning new campus on the grounds of Universal City, and employees are It is full of new amenities and benefits for employees.
In a meeting with CNBC employees last week, Lazarus spoke about the need to diversify its revenue base. Business News Network operates CNBC Pro, a premium subscription service that offers a variety of exclusive content. But you can do more than that. As part of SpinCo, CNBC could end deals that bundle networks with partners that wouldn’t even be considered under the lens of Peacock-centric NBCU, one CNBC staffer said, adding that Warner Bros.’ Discovery’s Max and suggested a virtual contract.
Lazarus also met with MSNBC staffers, including stars like Rachel Maddow and Katie Tarr, last Wednesday. Some attendees were upset after Lazarus acknowledged that MSNBC may have to consider changing its name and its familiar rainbow peacock logo with the spinoff. There was also no concrete answer regarding how MSNBC’s reporting process would be freed from NBC News.
Many NBC News personnel now appear regularly on MSNBC’s daytime schedule, and there are also many MSNBC programs that share a dramatization of NBC News’ journalism. While CNBC operates more independently from NBC News, there is “a push toward greater collaboration” between the two organizations. Regarding the spinoff move, a CNBC staffer said, “There’s a certain sense of resignation that we’ve been asked to merge with NBC and it’s all been for naught.”
Meanwhile, some SpinCo employees feared they could lose benefits given to Comcast employees, such as tickets to Universal theme parks and free broadband and cable TV in Comcast’s cable service area. Some people are disappointed. Comcast Chairman and CEO “Brian Roberts will continue to own one-third of the stock” [SpinCo]So maybe you can still get Comcast Internet or something for free,” one staff member said.
Within NBCUniversal’s production department, there’s actually not much angst about the cable spinoff. First, the creation of SpinCo doesn’t make much sense since most of the programming work is already concentrated at NBC, Peacock, and Bravo. Change of focus. And there’s some relief, as there’s finally clarity on who’s in charge on the entertainment side, now firmly in control under Donna Langley, and Lazarus moving to a cable spin-off. “The decision-making at the top of the platform is now clear,” said one executive. “This is really helpful, especially when you’re producing a show and want clarity.”
The new structure, with Langley at the helm, will reunite marketing and creative on the TV side to help launch programming. And having all of network entertainment under one boss (Langley handles primetime, Lazarus handles late night) helps streamline NBC’s operations.
Last Tuesday (November 19), a group of current and former NBCU executives gathered in Los Angeles to toast TV veteran Bonnie Hammer over dinner. After a long tenure building and operating the company’s comprehensive entertainment cable network, Bonnie Hammer is preparing for her next move. He will leave the company when his contract expires at the end of 2024. It was pure coincidence that this was the same day Comcast announced the spinoff of its cable division. But for that night’s gathering, the symbolism of celebrating Hammer, once dubbed the “Queen of Cable,” wasn’t lost on news of NBCU’s upcoming cable split.
— Brian Steinberg contributed to this article.
