Illustration: Aïda Amer/Axios
Comcast's decision to spin off its cable networks feels like the first step of another massive reordering of the broader media industry.
Why it matters: The company is unfolding a roadmap for how other media giants could deal with their own cable networks, including positioning themselves as a buyer.
Driving the news: The cable giant will spin off networks MSNBC, CNBC, Oxygen, USA Network, E!, Golf Channel and Syfy into a separate publicly traded company.
- Digital assets Fandango, Rotten Tomatoes, GolfNow and Sports Engine will also move over.
- After the spinoff, NBCU will consist of NBC broadcast network, its NBC News and Sports divisions, streaming service Peacock, and Bravo, the lone cable channel staying with Comcast.
Between the lines: It's not clear how CNBC and MSNBC will operate after the spinoff. While both news networks are editorially independent from NBC, they both rely on NBC News resources.
- Comcast executives will discuss potential licensing agreements and whether or not those two networks will continue to work with NBC, CNBC reported.
The big picture: Cable TV is reaching an inflection point that could lead to a reshuffling of the business.
- Cable networks still churn out millions in profits for media giants, who then use those profits to fund their streaming ambitions.
- For example, the networks Comcast is spinning off brought in $7 billion in revenue over the past year, according to the company.
- But that cable business is only getting smaller, while streaming is starting to become profitable on its own.
What we're watching: Comcast is positioning its new company as a repository for its unwanted cable assets — an example other companies could follow.
- Comcast said the spun-off company could even be "a potential partner and acquirer of other complementary media businesses."
- Disney and Warner Bros. Discovery have explored separating their linear TV assets in recent months, though both have since backtracked.
- Media executives are optimistic that dealmaking will increase under an incoming Trump administration that will push for deregulation.
