All Bets Are Off For MSNBC, CNBC and Bravo: Behind the TV Spinoff That Will Shake Up Cable

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As someone who has spent years navigating the ever-changing landscape of media, I must say that Comcast’s decision to spin off its cable networks is a bold and strategic move. It’s like the cable industry’s version of a game of musical chairs – everyone is scrambling to find a seat before the music stops.

The Sunday before election day, NBCUniversal had corporate synergy in full swing.

For a brief moment, the towering 30 Rockefeller Plaza became my gaming arena, as I found myself squaring off against Sen. Raphael Warnock and Gov. Doug Burgum in a verbal battle of wits, with Kristen Welker acting as the game moderator on “Meet The Press.

Additionally, she was accompanied by fellow team members in preparing for the election. Steve Kornacki managed the interactive “Big Board,” providing insights into the polls, while MSNBC host Jen Psaki represented a more liberal perspective during the panel debate.

If Comcast’s parent company, NBCUniversal (NBCU), successfully separates its cable channels from its other media assets, such a synergy might not occur again in the future.

On Wednesday, the cable titan announced plans to formally proceed with its proposed separation. This move involves the creation of a new company that will house MSNBC, CNBC, E!, Syfy, USA, Oxygen, Golf Channel, Fandango, and Rotten Tomatoes, with Mark Lazarus at the helm.

However, the agreement presents numerous complexities, and at this point, executives appear to lack clear solutions for them. Following the separation, the course of events may significantly alter the landscape of these channels, potentially redefining the television industry altogether.

MSNBC and CNBC

The intensity of the queries is particularly high within Comcast’s cable news networks, MSNBC and CNBC. An MSNBC insider characterized the atmosphere there as “somber,” whereas a CNBC insider depicted it as “slightly irritated, though likely okay.

The relationship between MSNBC and NBC News has been mutually advantageous. This partnership allows MSNBC’s talent to receive broadcast exposure, while many NBC anchors also contribute to the cable channel. Furthermore, MSNBC leverages NBC News’ extensive reporting resources, complementing them with its own programming that leans more towards opinions.

While CNBC has traditionally functioned independently, its executive offices, newsroom, and studios are based in Englewood Cliffs, New Jersey, with satellite studios at The New York Stock Exchange and Nasdaq. However, it’s only been since Cesar Conde took charge of the NBCUniversal News Group in 2020 that resources from CNBC have started to be merged with the broader news operation.

As a fan, I must admit, there’s uncertainty looming about future theme park vacation deals, but I’m feeling pretty optimistic about our abilities to excel beyond the broader NBCU conglomerate. CNBC officially joined forces with Lazarus yesterday, marking an early move towards this new organizational structure.

On Wednesday, Lazarus convened with prominent MSNBC personalities, along with Rashida Jones, the network’s president, as per a reliable company source. Lazarus appeared optimistic, yet admitted that the deal, with its intricacies and uncertainties, poses challenges that could potentially impact MSNBC’s core values significantly.

Pondering over the future of MSNBC: Will it retain its current name or change it? Can it still display the Peacock logo? Is a deal with NBC News for content ongoing, or might they look elsewhere? These are substantial queries without definitive responses, and for MSNBC specifically, the details will make all the difference.

The Sports Question

In a memo to NBCUniversal staff following the deal announcement, Comcast President Mike Cavanagh described the new company by emphasizing its focus on news, sports, and entertainment. He explained that the USA and Golf Channel would primarily serve as platforms for sports programming, with rights to WWE, NASCAR, Premier League, golf, college basketball, and the Olympics.

But will they really?

As a gamer, I’m well aware that when it comes to sports broadcasting, it’s NBCUniversal who holds the cards. Although I’m hopeful that they’ll hammer out a deal to keep those games on my cable channels, the spinoff brings about some long-term uncertainties. Will SpinCo still have those rights when NBCU renews them? Or will they aim to grab their own rights instead? Only time will tell.

Rick Cordella, President of NBC Sports, commented at a Sports Business Journal conference following the deal, stating that the agreement is “essentially a small representation of our broader industry…”. He explained that when Comcast first acquired NBCU, their cable channels were considered the crown jewel, but now, in this diverse and fragmented media landscape we find ourselves in, they’re viewing things from a different perspective.

Similar to Lazarus who knew little about the specifics, Cordella found herself in a similar situation, with the particulars of the separation being details that NBC’s sports rights partners would probably be keen to learn more about.

Regarding the specific details of how everything unfolds, I can’t provide those now. However, from a sporting point of view, we will keep our commitments and honor every promise made to our cable partners such as Golf Channel and USA.

Notably, Golf Channel shares a past as an autonomous entity, based in Orlando, Florida, similar to CNBC. However, in 2021, it merged with NBC Sports. There’s speculation that it might return to its southern roots during the spin-off.

However, some analysts suggest that the emerging company might aim to join the sports arena, actively pursuing fresh rights opportunities to expand, potentially due to the finite duration of traditional NBC sports content on the market.

The newly established SpinCo offers a wide range of entertainment options, including USA, E!, Oxygen, and Syfy, each contributing differently to the mix. At the time the deal was made public, NBCU was already planning to increase its scripted content on USA.

In recent times, it’s clear that the majority of NBCU’s entertainment funding has been directed towards Peacock, the NBC broadcast network, and Bravo, with the cable networks making the best they can with limited resources.

It’s plausible that the new structure grants them opportunities to increase their investments in entertainment. This could also mean they might acquire content from various creators, providing flexibility. Independently, this company may negotiate its own streaming deals, enabling it to offer content on other platforms. However, cable is no longer primarily associated with entertainment, as NBCU’s actions suggest. Shows like Suits were successful on USA, but gained popularity on Netflix. Contrastingly, the upcoming spinoff will air on NBC and Peacock, potentially leaving USA without such content.

What About Bravo?

A quirk in the deal: NBCU is keeping one, lone, cable channel: Bravo.

It’s clear that among all the brands in the company’s cable collection, Bravo has undoubtedly created the most robust one, thanks to its reality shows drawing large TV audiences and also significant viewership on Peacock. If any brand is likely to endure the transition to streaming within the company, it would be Bravo.

However, this agreement stirs up queries regarding Bravo’s longevity as a cable channel and whether NBCUniversal is planning to hasten its integration with Peacock. It also leaves us wondering if NBCU might consider housing Bravo-branded shows on NBC instead.

Although Bravo is set to keep the NBC network for continuity (details forthcoming), they’ll lose their cable channel counterparts from a broader collection (excluding the Telemundo channels, as that part of the business continues unscathed).

It’s undeniable that NBCUniversal’s cable networks gained advantages by being associated with the NBC broadcast network. During negotiations for distribution agreements, NBC is often seen as an essential channel, giving the company a strong position to maintain the availability of their other channels.

As a gamer, I’m cutting the cord here, which means those SpinCo channels will need to strike their own deals moving forward, sans the NBC heavy-handedness.

According to Scott Robson, an analyst at S&P Global Market Intelligence, it appears that Comcast is notably more proactive than other cable industry competitors in accepting and addressing the difficult financial aspects of their business.

Over the years, Comcast has been notably aggressive in closing down basic cable networks, with 7 shutdowns since 2015 as noted by Robson. It’s not too shocking then that Comcast is planning to separate these cable networks. Given the shrinking pay-TV landscape, it’s expected that the cable networks are more susceptible to future declines compared to the broadcast networks.

As a gamer, I’m excitedly anticipating next year when some of my favorite channels like USA, Bravo, E!, MSNBC, and Syfy could potentially be accessible to an astounding 60 million homes. Channels such as CNBC and Oxygen might not be quite as widespread, but they’re still on the list. However, I can’t help but wonder which channels will become the cornerstones of these spinoffs? If it’s USA, how much power will it truly wield during negotiations? The anticipation is killing me!

Cable Consolidation

Consolidation is the biggest question of all.

Comcast is straightforward in expressing its view of the new company’s actions. According to Cavanagh, SpinCo will have the ability to actively pursue opportunities and function as a possible collaborator or buyer for other businesses that align well with their media operations.

As a gaming enthusiast, I’m buzzing about the chatter in Tinseltown, particularly regarding Paramount. With the impending change in leadership come January, there’s a palpable excitement surrounding their studio, streaming platform, and CBS. However, it seems that the cable TV brands like MTV and Comedy Central aren’t generating as much buzz just yet.

Various self-governing companies such as AMC Networks and Hallmark, in addition to Warner Bros. Discovery’s collection of networks, may also spring to mind. However, the management at Warner Bros. Discovery appears to be intensely concentrated on implementing their strategy or pursuing larger transactions.

Comcast’s approach could trigger significant shifts within the industry, though the specifics remain unclear at this point. However, it seems almost inevitable that Comcast will serve as the anticipated consolidation tool for the sector; the key issues are which companies might be included and which ones might find themselves left out.

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2024-11-21 19:26