Sports
Behind Comcast's big TV deal: a bleak picture for once mighty cable industry
When Comcast swallowed NBC and Universal Studios 14 years ago, the sibling cable channels USA Network, Bravo and CNBC were considered diamonds in the rough.
USA Network had gained traction with its “Blue Skies” programming strategy: sunny and upbeat TV programs infused with a buoyant energy and natural light. The cable channels were NBCUniversal’s equivalent of blue skies, routinely delivering three-quarters of the company’s profit. In 2012, cable networks threw off a robust $3.3 billion in cash flow.
Times have changed.
Comcast this week announced its plans to jettison all but one cable channel into a separate, stand-alone publicly traded company that will take shape over the next year.
“This is a reminder that the cable television network business is yesterday’s news,” analyst Craig Moffett said Wednesday in an interview. “If it feels like Comcast is shedding itself of an albatross — that’s because it is.”
For now, Comcast’s cable channels remain a viable business by generating $7 billion in annual revenue. But you have only to look at the properties the Philadelphia cable giant is keeping to see how the top brass has picked future winners and losers in a fast-changing media landscape.
Comcast will hold on to the NBC broadcast network, with its NBC News and NBC Sports units, along with its prolific Los Angeles-based Universal film and television studios, Universal Studios theme parks, local TV stations, including KNBC-TV in Los Angeles, and streaming service Peacock, which now has 36 million subscribers.
The lone cable outlet set to remain within NBCUniversal is Bravo, which has a bold brand, cultural cachet and the “Real Housewives” franchises. Company executives reviewed data that showed NBC and Bravo shows had strong viewership on Peacock, insiders said.
The spinoff company will be composed of the remainder of the cable channels, including MSNBC, CNBC, USA, Oxygen, Syfy, E! and the Golf Channel as well as digital properties, including Rotten Tomatoes, Fandango and SportsEngine.
Comcast’s move is the strongest sign yet of alarm reverberating throughout Hollywood’s traditional companies. Cable channels have long been a key economic pillar by generating billions of dollars in cable distribution fees that more than covered up the misses when big-budget movies flopped or during advertising recessions.
No more. Rampant cord-cutting has roiled the television business and linear cable channels — once a mighty draw for couch-potato viewing — have become endangered species.
Industry executives privately acknowledge that they unintentionally contributed to the erosion by making cable channels less appealing — stuffed with endless sitcom reruns, dated movies and extended commercial breaks, contributing to the rise of on-demand streaming services.
Millions of consumers have switched to streaming platforms that offer fewer commercials, or none at all, and lower subscription prices. In the first six months of the year, an additional 4 million customer homes dropped pay-TV, according to a recent MoffettNathanson report.
That’s a 30% decline since 2012, when there were more than 100 million pay-TV homes in the U.S.
Consumers also can cancel streaming services with a click of a button — without haggling with a customer service representative at a pay-TV company call center.
The toll has been enormous. Thousands of entertainment company workers have been laid off in the last four years in seemingly endless waves of restructuring. Traditional media companies have struggled to shore up their slumping stock prices.
In August, Warner Bros. Discovery took a $9-billion write-down on the value of its basic cable portfolio, which includes CNN, TBS, TNT and Cartoon Network. That same month, Paramount Global wrote down $6 billion in value for its cable channels, including MTV, Nickelodeon, VH-1 and Comedy Central.
Pay-TV channel blackouts have become more common. And pioneering satellite TV company DirecTV two months ago announced its plan to buy competing Dish Networks for $1. That merger is expected to face regulators’ scrutiny.
More separations and roll-ups may be coming.
Warner Bros. Discovery Chief Executive David Zaslav has telegraphed his desire to wheel or deal assets now that President-elect Donald Trump is preparing to take office. Zaslav’s company is desperate to pay down debt taken on two years ago when the smaller Discovery merged with WarnerMedia, relieving AT&T of its entertainment headache.
Although Comcast’s move is bold, the reckoning began seven years ago after Netflix had become the go-to destination for younger viewers. That’s also when Rupert Murdoch, the now 93-year-old media baron, decided to sell much of 21st Century Fox to Walt Disney Co. Some investors and analysts believe the $71-billion price for the Fox assets was wildly overvalued.
Since then, Disney has taken steps to de-emphasize cable distribution, and the Burbank powerhouse is planning to launch ESPN directly to consumers next year — a move that many in the industry believe will mark the tipping point for the cable channel business.
“Comcast is accelerating this pressure [in the cable business] with its success with Peacock, which makes the legacy pay-TV model with multi-channel bundling of cable networks a much more difficult prospect going forward,” Raymond James analyst Frank G. Louthan wrote in a note Wednesday.
Comcast executives say they are not entirely pulling the plug on their cable channel business, noting that the new company will have resources to buy additional channels or other properties to build scale..
“The company will have significant cash flow, a strong balance sheet, and the financial flexibility to pursue growth opportunities, both organically and potentially through acquisitions,” Comcast President Mike Cavanagh said in a note to employees.
The spinoff company, which doesn’t yet have a name, will continued to be controlled by Brian Roberts, chair of Comcast.
Mark Lazarus, who currently serves as chair of NBCUniversal Media Group, will shift to the new company as its chief executive.
Comcast shareholders will receive stock in the new company in tax-free transactions.
Moffett, the analyst, said the cable channel company will face considerable challenges maintaining the channels’ position in the pay-TV and advertising markets.
“This [spinoff] is good news for investors but it’s not a guaranteed success,” Moffett said. “We’ve seen this movie before with Viacom and CBS. Separating the broadcast network from the cable channels could leave the cable channels adrift.”
In 2006, the late mogul Sumner Redstone split his media empire consisting of the cable channels and the Paramount film studio. CBS forged forward with its broadcast network, television studio, Showtime and a book publishing house.
Five years ago, Redstone’s daughter, Shari, reunified the company. In July, she decided to unload the entire enterprise, now called Paramount Global, to the Larry Ellison family. That transaction also faces a regulatory review.
Moffett and other analysts say the spinoff company could struggle to maintain the size of distribution fees that Comcast was able to wrangle from pay-TV operators, thanks to the muscle of NBC and its marquee program, “Sunday Night Football.”
Some analysts wonder whether Comcast is preparing the cable channels to be absorbed by another company or a private equity firm.
“It looks like this is set up for [another] transaction,” Moffett said of the Comcast spin.
Wall Street seemed to endorse the spinoff news. Comcast shares gained 1.6% Wednesday to close at $42.99.
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The Atlanta Falcons did not have to do much thinking about their future when their season ended Sunday.
The team did not even wait for Black Monday, as it fired head coach Raheem Morris and general manager Terry Fontenot on Sunday night.
The Falcons hired Morris ahead of the 2024 season, selecting him over candidates such as Bill Belichick, Mike Vrabel, Jim Harbaugh, Mike Macdonald and Ben Johnson.
Atlanta Falcons head coach Raheem Morris on the sideline against the New Orleans Saints in the second quarter at Mercedes-Benz Stadium. (Brett Davis/Imagn Images)
But Morris’ results were not what the Falcons wanted, going 8-9 in back-to-back seasons.
“I have great personal affinity for both Raheem and Terry and appreciate their hard work and dedication to the Falcons, but I believe we need new leadership in these roles moving forward,” owner Arthur Blank said in a statement. “The decision to move away from people who represent the organization so well and have a shared commitment to the values that are important to the organization is not an easy one, but the results on the field have not met our expectations or those of our fans and leadership. I wish Raheem and Terry the absolute best in their future pursuits.”
Wildly enough, the team’s record is the same as the division champion Carolina Panthers’, so the Falcons were just one win away from making the playoffs for the first time since the 2017 season. One of those losses was to the New York Jets, who would have had the first pick in 2026 instead of the second if that game’s result had been reversed.
Atlanta wound up winning their final four games, but it was not enough for them, or Morris and Fontenot.
Atlanta Falcons head coach Raheem Morris on the sideline against the Miami Dolphins in the first quarter at Mercedes-Benz Stadium on Oct. 26, 2025 in Atlanta, Georgia. (Brett Davis/Imagn Images)
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Morris previously served as the Los Angeles Rams’ defensive coordinator, winning a Super Bowl with them. He held numerous roles with the Falcons before going to Los Angeles, including serving as their interim head coach in 2020.
Morris initially replaced Arthur Smith, who served as the team’s head coach for three seasons. Smith is now the offensive coordinator for the Pittsburgh Steelers, who would make the playoffs with a win Sunday night against the Baltimore Ravens.
Perhaps the Falcons are kicking themselves for choosing Morris over several others. Vrabel won the AFC East in his first season with the New England Patriots, Johnson won the NFC North in his first year with the Chicago Bears, and Harbaugh is back in the playoffs with the Los Angeles Chargers.
Atlanta Falcons head coach Raheem Morris, center, stands with his team while wearing an Apalachee High School T-shirt after a recent school shooting there before an NFL football game against the Pittsburgh Steelers on Sunday, Sept. 8, 2024, in Atlanta. (AP Photo/John Bazemore)
There should be several names available to the Falcons, who are desperate to make the most of Michael Penix Jr., who will enter his third NFL season in September.
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DENVER — The game was the understudies versus the underwhelmings.
The second-string Chargers against the … wait a second, the top-seeded Denver Broncos only generated 240 yards and failed to score an offensive touchdown?
Such is the AFC this season, filled with teams who flash one week and fizzle the next.
Sunday’s regular-season finale — which the Broncos won, 19-3 — was far more competitive than it should have been, especially considering the lopsided incentives.
Whereas the Chargers were playing for pride and only modestly consequential postseason seeding, Denver’s stakes were two miles high: a free pass to the second round, and home-field advantage until the Super Bowl.
How unsettling that the Chargers could even make the game interesting, having rested 14 starters, including Pro Bowl quarterback Justin Herbert.
The Chargers now turn their attention to a first-round game at the 14-win New England Patriots, who have averaged 34.4 points in the five games since the beginning of December, on Sunday at 5 p.m. PST.
It’s another opportunity for Herbert to notch his first playoff victory. In his six seasons, the Chargers have had two one-and-done appearances — an epic collapse at Jacksonville in the 2022 season and a four-interception loss at Houston last season.
“With the way he’s played this season, this could be a breakthrough,” receiver Keenan Allen said. “Everything we want is still right in front of us.”
Chargers tight end Oronde Gadsden II catches a pass against Denver Broncos safety P.J. Locke during the first half Sunday.
(David Zalubowski / Associated Press)
That’s not exactly true. Allen reeled in two hefty items on his wish list. He needed nine more receiving yards for a $250,000 contract bonus, and six more receptions for a $750,000 payout. He finished with seven catches for 36 yards — jackpot!
“It’s nice to get that out of the way,” he said, smiling broadly.
Allen was one of the few seasoned Chargers veterans to set foot on the field. Watching from the sidelines were offensive starters Herbert, Ladd McConkey, Quentin Johnston and the entire starting offensive line.
So backup quarterback Trey Lance, making a rare start, had a collection of blockers that was even more hodgepodge than usual — and going up against the NFL’s sack leaders, no less. The Broncos came into the game with a club-record 64 sacks.
They got to Lance four times, and although that might be impressive, the Chargers collected four sacks of their own, two by backup defensive lineman Otito Ogbonnia.
“That was dope,” star edge rusher Khalil Mack said of the performance by second-stringers.
Mack sat out, as did All-Pro safety Derwin James Jr., linebacker Daiyan Henley and safety Elijah Molden. All will be back for the Patriots game.
The Chargers have beaten the Patriots in their last two meetings, including a 6-0 win two years ago in Foxborough. This is the first time the teams have played with these head coaches, Jim Harbaugh and Mike Vrabel.
“That’s the kind of game that defines your season,” Harbaugh said. “Our focus and attention is on that.”
Sunday’s game was a foregone conclusion before kickoff. Yes, the Chargers were 5-0 against AFC West opponents, but their primary aim was to stay fresh for the playoffs.
The Broncos, meanwhile, were so laser-focused on securing that No. 1 seed that coach Sean Payton instructed the videoboard operators to scrap the goofy games during breaks in the action. He wanted the crowd thinking about decibels, not distractions.
Denver running back RJ Harvey is tackled by Chargers defenders during the second half Sunday.
(C. Morgan Engel / Getty Images)
From the start, Denver looked on track. On their first possession, the Broncos drove from their 13 to the Chargers’ six, setting up the first of four field goals by Wil Lutz.
Who would have suspected that, after those 81 yards, Denver’s offense would generate only 31 more the rest of the half?
Put simply, Denver is a weird team. The Broncos have trailed in 12 of their 14 wins, and this was the second time this season they won without scoring an offensive touchdown. Naturally, there were incentives Sunday to staying as vanilla as possible on offense as not to reveal more to future opponents, although this is a team that already has put 17 games on video.
This game was either an offensive stinker or a defensive masterpiece, depending on your perspective.
Both quarterbacks led their team in rushing. Lance completed 20 of 44 passes for 136 yards with an interception. Denver’s Bo Nix was 14 of 23 for 141 yards.
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Top Milwaukee Brewers prospect Frank Cairone was hospitalized after being involved in a serious car accident near his New Jersey home on Friday, the team announced.
“Frank is currently being cared for at a hospital in New Jersey with the support of his family,” read a statement from the team, via MLB.com. “The Brewers’ thoughts and prayers are with Frank and his family during his difficult time.”
Pitcher Frank Cairone (left) with Green Valley High School (NV) infielder Caden Kirby during the MLB Draft Combine high school baseball game at Chase Field. (Mark J. Rebilas/Imagn Images)
The left-handed pitcher turned 18 this past September. He was drafted out of Delsea Regional High School in Franklinville, N.J. at No. 68 overall in the 2025 Draft.
News of the Brewers’ young prospect’s accident came shortly after the team announced it was not in contact with several players in Venezuela after U.S. military strikes in the country and the capture of its President Nicolás Maduro.
MLB TEAM UNAWARE OF STATUS OF PLAYERS IN VENEZUELA AFTER US MILITARY STRIKES
Milwaukee Brewers outfielder Jackson Chourio (11) is seen before the fifth inning of an MLB game between the Milwaukee Brewers and the Toronto Blue Jays on August 31, 2025, at Rogers Centre in Toronto, ON. (Mathew Tsang/Icon Sportswire via Getty Images)
Brewers president of baseball operations Matt Arnold revealed the team is unaware of the status of the players in a statement Saturday.
“We don’t have much info at the moment but are trying to follow up,” Arnold said, via the Milwaukee Journal Sentinel. “We know the airports have been shut down but not much beyond that.”
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Pitcher Frank Cairone during the MLB Draft Combine high school baseball game at Chase Field. (Mark J. Rebilas/Imagn Images)
The team’s players in Venezuela include star outfielder Jackson Chourio, infielder Andruw Monasterio and catcher Jeferson Quero, according to the outlet.
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