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Behind Comcast's big TV deal: a bleak picture for once mighty cable industry

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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.”

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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.

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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.

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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.

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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.

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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.”

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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.

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Wall Street seemed to endorse the spinoff news. Comcast shares gained 1.6% Wednesday to close at $42.99.

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Russell Wilson escalates feud with Sean Payton, labels Broncos coach ‘classless’

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Russell Wilson escalates feud with Sean Payton, labels Broncos coach ‘classless’

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Russell Wilson and Sean Payton spent just one NFL season together, but tension lingered after a rocky year.

And it appears the tension that built up from that tumultuous stretch continues to linger.

Wilson’s interview on the “Bussin’ With the Boys” podcast, recorded before last month’s Super Bowl between Seattle and New England, recently resurfaced. 

In the interview, Wilson doubled down on his October comment labeling Payton “classless,” saying he felt slighted by his former coach’s remarks.

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Head coach Sean Payton of the Denver Broncos talks to quarterback Russell Wilson on the sideline during an NFL preseason football game against the Arizona Cardinals at State Farm Stadium Aug. 11, 2023, in Glendale, Ariz. (Ryan Kang/Getty Images)

“[When] you’ve been on the same side or this and that, and I got the same amount of rings as you got, meaning Sean, right?” said Wilson, who won a Super Bowl with the Seattle Seahawks as Payton did coaching for the New Orleans Saints. 

“I got a lot of respect for him as a play-caller, this and that, but to take a shot, I don’t like. I don’t think it’s necessary, you know, I mean, especially when I’m not even on your own team anymore. So, for me, there’s a point in time where you have to, I’ve realized, I’ve stayed quiet for so long. There’s a there’s a time and place where I’m not.

“I know who I am as a competitor, as a warrior, as a champion, too, and, you know, I’ve beaten Sean, too. You know, like we’ve been on the same place and the same thing. And so, it’s not a matter of disrespect. Just don’t disrespect me.”

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Sean Payton and Russell Wilson of the Denver Broncos during an a game against the Minnesota Vikings at Empower Field at Mile High Nov. 19, 2023, in Denver, Colo. (Ryan Kang/Getty Images)

After a rocky one-year stint with the Pittsburgh Steelers in 2024, Wilson joined the New York Giants last offseason. However, he was relegated to a backup role after just three games.

Rookie Jaxson Dart quickly showed promise once he had the chance to start, but his season was briefly derailed by injury. Jameis Winston — not Wilson — stepped in for Dart in a handful of games. Dart threw three touchdowns in a Week 7 matchup with the Broncos, nearly pulling off an upset in what was eventually a close loss.

After the game, Payton said Dart provided a “spark” to the Giants’ offense.

“I was talking to [Giants owner] John Mara not too long ago, and I said, ‘We were hoping that that change would have happened long after our game,’” Payton said.

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The New York Giants’ Russell Wilson attempts to escape a sack by Dallas Cowboys defensive end James Houston (53) in the first half of a game Sept. 14, 2025, in Arlington, Texas.  (AP Photo/Julio Cortez)

Payton also said the Broncos would have faced less of a challenge had Wilson been under center.

“Classless … but not surprised,” Wilson responded in a social media post. “Didn’t realize you’re still bounty hunting 15+ years later though the media.”

Despite last season’s struggles and chatter about his football future, Wilson does not appear ready to call it quits in 2026.

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“I wanna play a few more years for sure,” he said. “I think, for me, I’ve always had the vision of getting to 40, at least. I think the game is different. Quarterbacks, we get hit. It’s not, you know, we get hit hard, but … there’s certain rules. I mean, back in the day when I started, bro, it was you just get [clobbered]. 

“I mean, so I feel like the game allows you to, you know, live a little longer, I guess. I feel healthy. I feel great. But I think, more than anything else is, do you love the game? Do you love studying? Do you love the passion for it all? Do you love the process? Do you love the practice? Do you love — everybody loves the winning part of it, but it’s process. There’s a journey that you got to be obsessed with. And that part I’m obsessed with.”

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Fatigue a factor as early matches begin at Indian Wells

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Fatigue a factor as early matches begin at Indian Wells

The early rounds of the BNP Paribas Open began Wednesday, with top seeds slated to start play Friday during the 12-day ATP and WTPA Master 1000 tournament.

A busy stretch of the tennis season reaches another gear at Indian Wells Tennis Garden, the second largest outdoor tennis stadium in the world.

While many consider it the “fifth Grand Slam” because of its elite player field, amenities and equal prize money for men and women, professionals acknowledge the tournament is part of a stressful stretch on the tennis calendar.

Indian Wells is followed by the Miami Open, another two-week Master 1000 tournament. The tour stops are known as the “Sunshine Double.”

Some players made the short trip from Indian Wells to Las Vegas this past weekend to participate in the MGM Grand Slam, an exhibition designed to help players ramp up for back-to-back tournaments.

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American Reilly Opelka, a 6-foot–11 pro, said managing fatigue after a series of tournaments before hitting Indian Wells has altered his practice and play in exhibition matches, including a loss to 19-year-old Brazilian Joao Fonseca in Las Vegas.

“Normally in any kind of competition, you get excited and play with a pressure point … but you don’t feel this when you are practicing,” Opelka said.

“I was trying to feel like this a few days ago while practicing with … [Tommy Paul,] but instead we got tired and hungry. … That usually doesn’t happen. We just decided to stop and go to eat somewhere.”

Paul said despite the decision to cut practice short, he feels fresh for the upcoming events.

“I started the year pretty well and for Americans, we are excited for the Sunshine Double,” Paul said.

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Casper Rudd lost to Opelka during the first round of the Las Vegas exhibition. The Norwegian also lost a week ago during the first round of the Acapulco Open, falling to Chinese qualifier Yibing Wu in straight sets.

Rudd said he felt “extremely tired” after the Australian Open in January.

Rancho Palo Verdes resident Taylor Fritz, ranked No. 7 in the world, said the best way to prepare yourself for grueling tour schedule is “putting [in] the time, work and repetition.”

“… Be there, be focused on the quality that you are doing,” said Fritz, a 28-year-old who won the Indian Wells title in 2022.

While some players are guarding against burnout, others struggled to even reach California. Some players who live in Dubai, including Russians Daniil Medvedev and Andrey Rublev, have to contend with closed airspace triggered by the U.S. and Israel bombing Iran.

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The ATP announced Wednesday that, “the vast majority of players who were in Dubai have successfully departed today on selected flights.”

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Law firm fighting for women’s sports in SCOTUS battle comments on ruling possibly impacting SJSU trans lawsuit

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Law firm fighting for women’s sports in SCOTUS battle comments on ruling possibly impacting SJSU trans lawsuit

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A law firm leading the charge in the ongoing Supreme Court case over trans athletes in women’s sports has responded after a federal judge suggested the case’s ruling could impact a separate case involving a similar issue. 

Colorado District Judge Kato Crews deferred ruling in motions to dismiss former San Jose State volleyball co-captain Brooke Slusser’s lawsuit against the California State University (CSU) system until after a ruling in the B.P.J. v. West Virginia Supreme Court case, which is expected to come in June. 

Slusser filed the lawsuit against representatives of her school and the Mountain West Conference in fall 2024 after she allegedly was made to share bedrooms and changing spaces with trans teammate Blaire Fleming for a whole season without being informed that Fleming is a biological male. 

 

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Meanwhile, the B.P.J. case went to the Supreme Court after a trans teen sued West Virginia to block the state’s law that prevents males from competing in girls’ high school sports. 

The Alliance Defending Freedom (ADF) is the primary law firm defending West Virginia in that case at the Supreme Court, and has now responded to news that Slusser’s lawsuit could be affected by the SCOTUS ruling. 

“We hope the ruling from the Supreme Court will affirm that Title IX was designed to guarantee equal opportunity for women, not to let male athletes displace women and girl in competition. It is crucial that sports be separated by sex for not only the equal opportunity of women but for safety and privacy. Title IX should protect women’s right to compete in their own sports. Allowing men to compete in the female category reverses 50 years of advancement for women,” ADF Vice President of Litigation Strategies Jonathan Scruggs said.

Slusser’s attorney, Bill Bock of the Independent Council on Women’s Sports, expects a Supreme Court ruling in favor of the legal defense representing West Virginia, thus helping his case. 

(Left) Brooke Slusser (10) of the San Jose State Spartans serves the ball during the first set against the Air Force Falcons at Falcon Court at East Gym in Colorado Springs, Colorado, on Oct. 19, 2024. (Right) Blaire Fleming #3 of the San Jose State Spartans looks on during the third set against the Air Force Falcons at Falcon Court at East Gym on October 19, 2024 in Colorado Springs, Colorado. ( Andrew Wevers/Getty Images; Andrew Wevers/Getty Images)

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“We’re looking forward to the case going forward,” Bock told Fox News Digital. 

“I believe that the court is going to find that Title IX operates on the basis of biological sex, without regard to an assumed or professed gender, and so just like the congress and the members of congress that passed Title IX in 1972, allowed this specifically provided for in the regulations that there had to be separate men’s and women’s teams based on biological sex, I think the court is going to see that is the original meaning of the statute and apply it in that way, and I think it’s going to be a big win in women’s sports.”

The Supreme Court’s conservative majority appeared prepared to rule in favor of West Virginia after oral arguments on Jan. 13. 

Slusser spoke on the steps of the Supreme Court on Jan. 13 while oral arguments took place inside, sharing her experience with a divided crowd of opposing protesters. 

With Fleming on its roster, SJSU reached the 2024 conference final by virtue of a forfeit by Boise State in the semifinal round. SJSU lost in the final to Colorado State.

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Slusser went on to develop an eating disorder due to the anxiety and trauma from the scandal and dropped out of her classes the following semester. The eating disorder became so severe, that Slusser said she lost her menstrual cycle for nine months. Her decision to drop her classes resulted in the loss of her scholarship, and her parents said they had to foot the bill out of pocket for an unfinished final semester of college. 

President Donald Trump’s Department of Education determined in January that SJSU violated Title IX in its handling of the situation involving Fleming, and has given the university an ultimatum to agree to a series of resolutions or face a referral to the Department of Justice. 

Among the department’s findings, it determined that a female athlete discovered that the trans student allegedly conspired to have a member of an opposing team spike her in the face during a match. ED claims that “SJSU did not investigate the conspiracy, but later subjected the female athlete to a Title IX complaint for ‘misgendering’ the male athlete in online videos and interviews.”

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SJSU trans player Blaire Fleming and teammate Brooke Slusser went to a magic show and had Thanksgiving together in Las Vegas despite an ongoing lawsuit over Fleming being transgender. (Thien-An Truong/San Jose State Athletics)

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SJSU Athletic Director Jeff Konya told Fox News Digital in a July interview that he was satisfied with how the university handled the situation involving Fleming.

“I think everybody acted in the best possible way they could, given the circumstances,” Konya said. 

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