Comcast, one of the biggest television companies in the U.S., stated that it was considering separating its cable networks from the rest of the company—a move that could position it to disrupt the struggling cable industry. Mike Cavanagh, the company’s president, said on an earnings call that Comcast might transfer the cable networks owned by its NBCUniversal division—including Syfy, Bravo, and USA Network—into a new company.
This comes as American audiences continue to drop their cable TV subscriptions. Spinning out the cable channels would reshape the company’s TV business and could create complications for MSNBC and CNBC, which are currently integrated with NBC News.
Mr. Cavanagh said: “Like many of our peers in media, we are experiencing the effects of the transition in our video businesses, and we have been studying the best path forward for these assets." He also noted that Comcast had chosen not to participate in the bidding war this year for Paramount, which ultimately agreed to a merger with Skydance, a Hollywood studio run by David Ellison.
He spoke after Comcast reported a 3.3 percent decrease in net income last quarter, even as revenue increased 6.5 percent, to $32 billion. The company reported losses of 87,000 U.S. customers for its broadband services compared with the same period last year, and cable TV subscribers continued to decrease. Let's not forget that Comcast has already partnered with Paramount, the owner of CBS and MTV, in the UK to launch a streaming joint venture called SkyShowtime.