Comcast Spin-Off Looking To Buy More TV Channels And Expand The Streaming Market

The cable-TV networks business being spun off by Comcast Corp. will explore acquiring other cable channels and creating its own streaming services to grow after separating from its parent.

Channels specializing in documentaries or food-related shows are among the options for the new company, according to people familiar with the plans. Those are two programming areas the current portfolio lacks.

The spinoff, which hasn’t been named, could also create its own streaming business or packages of channels for online distributors like Amazon.com Inc., said the people, who asked not to be identified discussing nonpublic information. The spinoff will likely negotiate its own distribution deals with pay-TV distributors when its current contracts run out.

Philadelphia-based Comcast on Wednesday formally announced plans to divest most of its cable-TV networks, including MSNBC, CNBC and the USA Network, into a new publicly traded company. The networks generated about $7 billion in revenue over the past 12 months and reach about 70 million US households, the company said. 

Cable networks have been a drag on Comcast’s business as consumers continue to cancel pay-TV services in favor of streaming options like Netflix Inc. While the spinoff doesn’t need to acquire more channels, that could be an option as pay-TV distributors look to create more bespoke packages of channels with network owners. 

Comcast is keeping the NBC broadcast network and the Peacock streaming service. While Peacock is losing money, it is considered a growth business as consumers switch to online viewing. The most popular programming on both is sports, and Comcast has decade-long rights for the NFL and, starting next year, the NBA. Programs from the channels being spun off represent just 2% of the viewing on Peacock, the people said. 

Bravo, a channel specializing in reality TV, is also staying with Comcast because its programming is popular on streaming. Spanish-language network Telemundo will also remain part of Comcast because its audience is considered a growth market. 

In a potential bright spot in a media industry buffeted by layoffs in recent year, the spinoff could be opportunity for Comcast to avoid some job reductions: The new company will need to build its own corporate infrastructure. The company will negotiate intercompany agreements on issues like advertising sales, programming and other corporate services. 

Mark Lazarus, who’ll be chief executive officer of the new business, told employees Wednesday that a new name for the MSNBC news network could be among the changes, according to Variety.

Under the spinoff plan, shareholders of Comcast will receive stock in the new company, which will also include Oxygen, E!, SYFY and the Golf Channel. It will also own complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine.

Comcast Chairman Brian Roberts, who holds a one-third voting stake in his company, will have a similar holding in the new company. 

The spinoff is expected to take a year to be completed. 

DreamWorks, Telemundo, CNBC, MSNBC, Universal TV And Studio Universal May Have To Undergo A Name Change Under Comcast's Spun Off Company

As some readers are aware, NBCUniversal similar to Disney is looking to reducing its linear portfolio in the coming years with NBC, Telemundo and Bravo being what's left of the company alongside Peacock. As E!, CNBC, MSNBC and Universal TV are all being spun off under a separate company which will be financed by few shareholders at Comcast.

MultiChoice currently supplies channels like Universal TV, E!, Telemundo, Studio Universal, DreamWorks, CNBC and MSNBC from NBCUniversal. With this separation, these channels will look unrecognizable in the coming years not only by what it chooses to air but also by name.

Comcast plans to retain the studios used to produce the content viewed by these channels and if we're reading between the lines E! won't own The Real Housewives as much as DreamWorks won't own Shrek. Yes, it's likely that when this spinoff occurs they'll try to retain as much of their former selfs but overtime it will change.

Considering these aren't members of Comcast, what is likely to transpire now is that the latter will have to undergo a name change or close altogether. This is what happened when Disney acquired FOX it had to remove the FOX trademark from various properties while it's linear channels either closed or rebranded to FX/Star.

It will be interesting to see what identity these channels take up once this whole ordeal unfolds by 2025 as Comcast holds the NBC, Telemundo and Universal trademarks. What I imagine them doing particularly with Telemundo is dissolving the brand as SpinCo doesn't own the content and is likely to prioritize on their "more broader channels".

DreamWorks, another TV channel like Telemundo is the broader channel and SpinCo could try to capitalise on its success. NBCUniversal has always been a local when it comes to its linear portfolio, internationally this was also spearheaded by what is known as SpinCo but this time it has do it without these studios in its pocket.

"SpinCo": Comcast Unveils Spun Off Company Home To Brands Like MSNBC And E!

The company announced a plan Wednesday that will offload the bulk of NBCUniversal‘s financially challenged cable portfolio — excluding Bravo — into a new entity owned by Comcast shareholders. The thinking is the new company will be positioned to acquire other media and digital properties, to gain greater scale in an increasingly streaming-focused landscape. Alternatively, the separation of the NBCU cable group would make it easier to sell the business.

The spin-off company will house MSNBC, CNBC, USA Network, Oxygen, E!, Syfy and Golf Channel. In addition, the company will include digital assets including Fandango and Rotten Tomatoes, online golf-course booking service GolfNow and youth-sports platform SportsEngine. Comcast said it is structured as a tax-free spin-off.

The new NBCU cable TV company — currently dubbed “SpinCo” — will be led by CEO Mark Lazarus, who has served as chairman of NBCUniversal Media Group since July 2023, overseeing the company’s TV and streaming operations.

“When you look at our assets, talented management team and balance sheet strength, we are able to set these businesses up for future growth,” Comcast chairman and CEO Brian Roberts said in a statement. “With significant financial resources from day one, SpinCo will be ideally positioned for success and highly attractive to investors, content creators, distributors and potential partners.”

Comcast stock was up about 2% in premarket trading, to over $43/share, off its 52-week high of $47.11.

Post-spin, NBCUniversal will comprise the NBC broadcast network and stations, the Peacock streaming service, Bravo (the reality TV powerhouse seen as a key to Peacock’s success), NBC News Group, NBC Sports, Telemundo, the Universal theme parks and resorts, and NBCU’s film and television studios. The “new” NBCU will be led by Matt Strauss, who will become chairman of NBCUniversal Media Group overseeing Peacock, NBC Sports, ad sales, distribution, research and affiliate relations; and longtime content executive Donna Langley, who is assuming the role of chairman of NBCUniversal Entertainment & Studios, expanding her purview to include full oversight of all entertainment programming and marketing across Peacock, Bravo and NBC (including primetime and late night).

the role of CFO and chief operating officer.

Lazarus commented: “As a standalone company with these outstanding assets, we will be better positioned to serve our audiences and drive shareholder returns in this incredibly dynamic media environment across news, sports and entertainment. We see a real opportunity to invest and build additional scale, and I’m excited about the growth opportunities this transition will unlock.”

The article was originally published by Variety 

How Comcast Plans To Ditch Several NBCUniversal Channels Affects DStv?

MultiChoice currently supplies channels like Universal TV, E!, Telemundo, Studio Universal, DreamWorks, CNBC and MSNBC from NBCUniversal. As reported, NBCUniversal's parent company Comcast is planning to ditch these channels and make them into a separate company.

Similar to how Naspers dumped MultiChoice and Irdeto now that is being eyed by French broadcaster Canal+. The same potential owner is also being abandoned by its parent company with some of its shareholders joining the spin off and what do all these entities have in common - TV channels.

There are some former DStv customers celebrating right now that more people will likely abandon the platform if these channels ceased to exist when this plans enter fruition. But this is a bad thing yes some would prefer Wednesday or Squid Games on Netflix but there's plenty of people that are still in it for DStv particularly these channels.

Now that Comcast from the looks of things are dumping NBCUniversal probably even Sky Group as majority of their existence centers on these channels. Questions amount to how E! and DreamWorks will survive such in a transaction even Telemundo are their existence centred on originality.

E! has been winding down it's operations in parts of Europe and I can imagine various shareholders in this spun off company looking to simplify it's operations. Then there's DreamWorks even if the plan was to retain the channel it would look unrecognizable in the coming years relying on imports.

Sure Cartoon Network has been doing this for several years but a majority would expect 100% DreamWorks from its own channel. I expect once this spinoff happens for brands like DreamWorks to undergo a name change. This is what happened when Disney acquired FOX they didn't own the trademark like they did it's studios and channels.

Presuming DreamWorks will morph into Universal Kids but then again it all depends on what the higher ups decide at this point I can imagine them looking to simplify their operations. E! has closed down in the UK and parts of Europe more could follow maybe Telemundo as they prioritize other brands.

MultiChoice had already dealt with such a blow from Disney after it closed FOX, FOX Life and Disney XD. None of these brands were replaced leaving an empty void on top of the recent bloodbath of Me as it merged with 1Magic to form a premium channel known as 1Max, we could just be dealing with even less content.

Comcast Plans Massive Cable Spin-Off, Separating USA, MSNBC and More From NBC, Theme Parks

Comcast is planning to spin off most of its cable television networks, including MSNBC and CNBC, into a separate publicly traded company, according to executives with knowledge of the plan.

The spinoff is expected to be formally announced on Wednesday. The Wall Street Journal, which first reported the impending announcement on Tuesday evening, said the involved channels also include USA, Oxygen, E!, Syfy and Golf Channel.

Comcast’s NBCUniversal division is keeping Bravo, the NBC broadcast network, the Peacock streaming service, and all of its other assets, like NBC Sports and the Universal theme parks.

The separate cable channel company will have the same sort of ownership structure as Comcast, but will have its own management team, led by NBCUniversal Media Group chairman Mark Lazarus, who will become CEO of the new venture.

While observers may view the spinoff as an attempt to shed cable channels that are losing value in the streaming age, the channels still contribute strong profits to Comcast’s bottom line. The company’s executives are expected to portray the spinoff as a growth opportunity for an industry in transition, with an eye toward acquiring other channels in the future.

Of course, the standalone cable network venture could also attract buyers as well as sellers. Wall Street analysts are predicting further consolidation of major media companies in the years ahead.

Comcast president Mike Cavanaugh foreshadowed the spinoff during a conference call with investors last month. He said the company was going to study whether it was a good idea to create “a new well-capitalized company that would go to our shareholders” comprised of “our cable portfolio networks.”

The study evidently did not take long.

Craig Moffett, an analyst with MoffettNathanson, told Variety that “investors have yearned for exactly this, or at least something close to it, for years.”

Notably, the spinoff will cleave MSNBC and CNBC, two profitable parts of the NBCUniversal News Group, away from the core news-gathering operation of NBC News. In recent years NBC has tried to bring its broadcast and cable news operations closer together. Now they may be peeled back apart.

Comcast Considering Spinning Off TV Networks As More Households Opt For Streaming

During a tumultuous moment for the TV business, NBCUniversal owner Comcast says that it may pursue some major deals to adapt to the changing environment.

For starters, Comcast president Mike Cavanagh said that the company is weighing a spinoff of its cable networks, which include USA Network, Bravo, MSNBC, CNBC and Syfy. He emphasized that the NBC broadcast network and Peacock would remain with the core company.

“Like many of our peers in media, we are experiencing the effects of the transition in our video businesses, and have been studying the best path forward for these assets. We are now exploring whether creating a new well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks would position them to take advantage of opportunities in the changing media landscape and create value for our shareholders,” Cavanagh told Comcast’s third-quarter earnings conference call on Thursday. “We are not ready to talk about any specifics yet, but we’ll be back to you if and when we reach firm conclusions.”

And he added that the company is interested in seeking a partner for its Peacock streaming service in a bid to grow the business.

“As you know, we chose not to participate in the M&A process around Paramount in the earlier part of this year, but we would consider partnerships in streaming despite their complexities,” he said.

Spinning out the cable channels would transform the company’s TV business and would lead to complications for MSNBC and CNBC, which are currently integrated into NBC News. Similarly, shows from Bravo (like Watch What Happens Live and the Real Housewives franchise) are popular on streaming service Peacock.

There has been speculation in the industry that a legacy company with cable channels could launch a rollup vehicle, something that could acquire other channels to build scale, giving it the ability to drive harder bargains with pay TV providers and pursuing other options in streaming.

Cavanagh declined to address that directly on the call, but said that if the company pursues a spinoff, it could “play some offense.”

On the streaming front, while Peacock has acceptable scale (it now has 36 million subscribers), Comcast clearly thinks that working with another partner can make it a more compelling competitor to Netflix. The two logical possible partners are Paramount+ — with executives there openly discussing a partnership — or Warner Bros. Discovery’s Max.

As for the choice to announce their decision to look into the possibilities, Cavanagh said that they wanted to disclose the idea to Wall Street early, rather than have it leak out later.

“The reason we’re announcing here is that we want to study it, there are a lot of questions to which we don’t have answers,” Cavanagh said. “So we want to do the work, with transparency around it, so that — as you know, rumors fly and the like, you know, we expect that — but we want our shareholders to understand what we’re willing to look at.”

MultiChoice, NBCUniversal Invest R2.8 Billion Into Showmax

MultiChoice video streaming platform Showmax has received equity funding of $164 million (R2.8 billion), as it looks to take on international video-on-demand platforms such as Netflix and Disney+.

This, after in March last year, MultiChoice entered into an agreement with Comcast subsidiary NBCUniversal and Sky, to form a partnership for purposes of driving Showmax to become the “leading streaming service in Africa”.

Comcast, through its subsidiary NBCUniversal, acquired a 30% equity stake in Showmax, and provides ongoing support through the licensing of its Peacock platform and content from NBCUniversal, Universal Pictures, Peacock and Sky.

MultiChoice, through its wholly-owned subsidiary MultiChoice Group Holdings, and Comcast, through NBCUniversal, are providing funding to Showmax (only as and when Showmax’s board determines) during its investment phase.

According to MultiChoice, this is contributed in proportion to the companies’ respective shareholdings and they will share profits on the same basis in future.

It adds that equity funding is provided as required (either monthly or at other intervals) depending on Showmax’s working capital requirements and near-term budget (as determined by Showmax’s board) subject to a maximum capped amount.

As at 31 March 2024, MultiChoice Group and NBCUniversal provided, in the aggregate, $120 million (R2 billion) in equity funding to Showmax, each in proportion of their respective shareholdings.

“Since 1 April 2024 until the date of this announcement, MultiChoice Group and NBCUniversal provided, in the aggregate, $164 million (R2.8 billion) in equity funding to Showmax, each in proportion of their respective shareholdings,” says the JSE-listed video entertainment company.

Faced with declining subscriber numbers in the traditional pay-TV space, MultiChoice is pinning its hopes on streaming platforms Showmax and DStv Stream.

The company’s latest financial results show overall active subscribers declined by 9%.

According to the company, this was mainly due to a 13% decline in the “rest of Africa” business, with Nigeria, Angola and Zambia most affected, while the South African business was more resilient, declining by only 5%.

The results come as French-based media giant Canal+ is looking to take over the South African firm in a R30 billion deal.

Over the years, MultiChoice’s subscriber numbers have reduced amid pressure from global streaming services such as Netflix, Disney+ and Amazon Prime.

To boost its streaming offerings, MultiChoice relaunched Showmax, stating its intention of becoming the leading platform in Africa.

However, research projections show the new Showmax will become Africa’s second-biggest video streaming service in five years.

According to a report by Digital TV Research, Sub-Saharan Africa will have 16 million paying subscription video-on-demand (SVOD) subscriptions by 2029, up from seven million at the end of 2023.

It notes Netflix will remain the SVOD market leader, with 6.9 million subscribers by 2029, and Showmax will be the second-largest platform, with 3.7 million paying subscribers.

MultiChoice recently enhanced its DStv Stream app

 by adding personalisation features, which it believes will draw more viewers to the platform.

NBA Signs New 11-Year Media Agreements With The Walt Disney Company, NBCUniversal And Amazon Prime Video

The National Basketball Association (NBA) today announced the renewal of its partnership with The Walt Disney Company and new agreements with NBCUniversal (NBCU) and Amazon under which ABC/ESPN, NBC/Peacock and Prime Video will telecast NBA games beginning with the 2025-26 season and running through the 2035-36 season.

The NBA App will be a universal access point – seamlessly directing fans to every national game on Disney, NBCU and Amazon platforms.

The new media deals will expand the reach of NBA telecasts, with all national games available on broadly distributed streaming services – Prime Video, Peacock and ESPN’s forthcoming direct-to-consumer service – and with dramatically increased exposure on broadcast television.  Approximately 75 regular-season games will be on broadcast TV each season, up from the minimum of 15 games under the current agreement.

“Our new global media agreements with Disney, NBCUniversal and Amazon will maximize the reach and accessibility of NBA games for fans in the United States and around the world,” said NBA Commissioner Adam Silver.  “These partners will distribute our content across a wide range of platforms and help transform the fan experience over the next decade.”

“We look forward to building upon our incredible legacy of innovation and growth with our longstanding partners at the NBA,” said ESPN Chairman Jimmy Pitaro.  “The NBA is a vibrant, ascendant league and through this premium collection of rights, including every NBA Finals on our platforms, we will continue to evolve together while successfully navigating the global digital transition and delivering the highest quality coverage for fans.”

“We are proud to once again partner with the NBA and WNBA, two iconic brands and the home of the best basketball in the world,” said Mike Cavanagh, President of Comcast Corporation.  “We look forward to presenting our best-in-class coverage of both leagues with our innovative programming and distribution plan across NBC and Peacock to entertain fans and help grow the game.”

“We are honored that the NBA has entrusted Prime Video to deliver its one-of-a-kind action and excitement to viewers around the world,” said Mike Hopkins, Head of Prime Video and Amazon MGM Studios.  “We look forward to continuing to innovate and evolve live sports coverage for our customers, and are fully committed to building an incredible video experience for millions of NBA fans starting in 2025.”

Disney, NBCU and Amazon also secured the right to distribute an unprecedented number of WNBA live game telecasts, with a significant increase in the reach of WNBA games across broadcast, cable and streaming.  Full details regarding the WNBA’s media agreements will be issued in a separate press release.

The Walt Disney Company

Disney (ABC/ESPN) will distribute a total of 80 NBA regular-season games per season, including more than 20 games on ABC (generally on Saturday nights with NBA Saturday Primetime and on Sunday afternoons with NBA Sunday Showcase) and up to 60 games on ESPN (generally on Wednesday nights and, on occasion, Friday nights).  ABC/ESPN will continue to telecast all five NBA games on Christmas Day and provide exclusive national coverage of the final day of the regular season.

During the playoffs, ABC/ESPN will telecast approximately 18 games in the first two rounds each year and one of the two Conference Finals series in 10 of the 11 years of the agreement.  ABC will remain the exclusive home of the NBA Finals, which it has broadcast since 2003.

All NBA games and events on ABC/ESPN will be available on ESPN’s forthcoming direct-to-consumer service.  ABC/ESPN will continue to telecast the NBA All-Star Celebrity Game, NBA Draft, NBA Draft Lottery and half of all NBA Summer League games.  ABC/ESPN platforms will also continue to distribute a package of WNBA and NBA G League regular-season and postseason games.

Disney will distribute NBA games on ESPN-branded assets in several international markets, including Latin America, Sub-Saharan Africa, Oceania and the Netherlands, and via Disney+ in select markets in Asia and Europe.

By the end of this renewal, the NBA’s partnership with ABC/ESPN will reach 34 years.

NBCUniversal

NBCU (NBC/Peacock) will distribute up to 100 NBA regular-season games per season – with more than half of the games airing on NBC (on Sunday and Tuesday nights).  NBCU will telecast the league’s opening night doubleheader on NBC each year and at least two games on MLK Day on NBC and/or Peacock each season.

Peacock will stream a doubleheader each Monday night of the season.  Every Tuesday night, NBC will telecast two games across certain NBC affiliate broadcast stations in different regions of the country.  The first game will start at 8 p.m. ET and be available on NBC across affiliate stations in the Eastern and Central time zones.  The second game will start at 8 p.m. PT and be available on NBC affiliate stations across the Pacific and Mountain time zones.  All Tuesday games will be available on Peacock nationally and certain stations may choose to televise both games.

NBC will become the home of NBA All-Star, including Rising Stars, State Farm All-Star Saturday Night, featuring AT&T Slam Dunk, Starry 3-Point Contest and Kia Skills Challenge, and the All-Star Game.  In the playoffs, NBC and/or Peacock will telecast approximately 28 games in the first two rounds of the playoffs, with at least half of those games airing on NBC.  NBC will also telecast one of the two Conference Finals series in six of the 11 years on a rotating basis with Amazon, beginning with the 2025-26 season.

As part of the partnership, NBCU will distribute NBA games in several European markets through Sky Sports as well as in the Caribbean and Sub-Saharan Africa.  Additionally, NBCU will distribute WNBA games and be the home of all USA Basketball Senior Men’s and Women’s National Team games.

Xfinity will become the Official TV Service of the NBA, WNBA and USA Basketball.  The partnership includes collaboration on marketing and storytelling opportunities, virtual signage during game telecasts and activations at marquee NBA, WNBA and USA Basketball events.

Amazon

Amazon will distribute 66 NBA regular-season games on Prime Video each season, including Thursday night doubleheaders beginning in January, Friday evening doubleheaders, select Saturday afternoon games, at least one game on Black Friday (the day after Thanksgiving), and the Quarterfinals and Semifinals in the Knockout Round of the Emirates NBA Cup.  In addition, Prime Video will stream the Championship Game of the Emirates NBA Cup.

Prime Video will also distribute all six SoFi NBA Play-In Tournament games.  In the playoffs, Prime Video will stream approximately one-third of the first and second rounds each year.  Additionally, Prime Video will stream one of the two Conference Finals series in six of the 11 years on a rotating basis with NBCU, beginning with the 2026-27 NBA season.

Amazon will distribute NBA games globally as part of Prime Video, with an expanded package of games in select territories, including Mexico, Brazil, France, Italy, Spain, Germany, the United Kingdom and Ireland.  This expanded package includes a minimum of 20 additional primetime regular season games each year, a Conference Finals series each year, and the NBA Finals in six of the 11 years.  Prime Video will also become the NBA’s strategic partner and third-party global destination of NBA League Pass – the league’s live NBA game subscription service, with expanded distribution rights for NBA League Pass in the U.S. and internationally.   Additionally, as part of the agreement, Prime Video will stream half of all NBA Summer League games as well as a package of WNBA and NBA G League regular-season and postseason games.

Rogers Communications Creates Content Partnership With NBCUniversal For Bravo And Warner Bros. Discovery For Factual Entertainment

Rogers Communications has agreed to bring content from NBCUniversal and Warner Bros. Discovery to streaming platforms in Canada.

The Canadian telecommunications company said Monday that it has penned multi-year deals with the two U.S.-based mass media and entertainment companies

Starting in September, Rogers will Launch NBCUniversal's Bravo channel in the country and will become the English-language television content rights holder in Canada.

A few months later in January, Rogers will be the distribute Warner Bros. Discovery's U.S. lifestyle and factual brands, including HGTV and The Food Network.

Rogers said it will work with Canadian distributors to make the content widely available, and that it will increase its investment in original Canadian content and collaborate with Canadian independent producers.

Comcast To Launch Peacock, Netflix And Apple TV+ Bundle At A 'Vastly Reduced Price'

Get ready for the next cable-like streaming bundle: Comcast later this month will launch a three-way bundle — with Peacock, Netflix and Apple TV+ — offered at a deep discount, Comcast chief Brian Roberts said.

Dubbed StreamSaver, the bundle will be available to all Comcast broadband, TV and mobile customers, Roberts said, speaking Tuesday at MoffettNathanson’s 2024 Media, Internet and Communications Conference in New York.

The three streaming services, Peacock, Netflix and Apple TV+, will “come at a vastly reduced price to anything available today,” Roberts said, although he didn’t reveal any pricing details. The goal is to “add value to consumers” and “take dollars out” of other companies’ streaming businesses, he added, while reinforcing Comcast’s broadband service offerings.

“This will be a pretty compelling package,” Roberts promised.

Last week, Disney and Warner Bros. Discovery announced a three-way bundle comprising Max, Disney+ and Hulu, to be available starting this summer in the U.S. (with pricing TBA). In addition, Disney, WBD and Fox Corp. have formed a joint venture to launch a streaming sports bundle stocked with ESPN+ and linear TV networks from each, slated to debut this fall. Critics have alleged the venture, which some have dubbed “Spulu” (a mash-up of “sports” and “Hulu”), is anticompetitive and violates antitrust law.

Like the other streaming bundling strategies, Comcast’s forthcoming Peacock, Netflix and Apple TV+ package is an effort to reduce cancelation rates (aka “churn”) and provide a more efficient means of subscriber acquisition — coming as the traditional cable TV business continues to deteriorate.

DreamWorks Animation Rumoured To Be "Undergoing Further Restructure" As It Closes TV Division

DreamWorks Animation Television is a American based production company operated by NBCUniversal that distributes various animated titles. It is home to award winning productions such as Shrek, The Croods, How To Train Your Dragon and Boss Baby.

Accompanied by this, DreamWorks Animation Television operated several 24 hour channels across the world including Universal Kids (US), Sky Kids (UK) and DreamWorks Channel (Europe, Asia and Africa).

Following last year's dismal performance at the global box-office, it was announced that the brand would "no longer be producing films independently". By 2025, two upcoming films are said to headed by Imagework known for Hotel Transylvania and Spiderverse.

At the time fear lurked around the move away from in-house production with mass layoffs likely on the cards and downsizing of new content in the coming years.

In an interview with Kung Fu Panda co-director, it was revealed that most if not all TV divisons headed by DreamWorks Animation Television had been dissolved with the company reportedly wrapping up some "final projects" likely The Wild Robot.

It is currently unknown what fate may await short form projects like Megamind Rules and Jurassic World: Chaos Theory. Considering that the latter was based on existing IPs its likely that these will remain operational for the time being if not scrapped.

But considering the current state of DreamWorks Animation Television, we may be seeing less content of this stature going forward. Of course, the company had produced various content outside existing IPs such as Fright Krewe, Curses! and The Mighty Ones.

This had been more noticeable mainly through their preschool counterpart DreamWorks Jr., home to shows like Gabby's Dollhouse, Pinecone & Pony, Doug Unplugs and Rhyme Time Town.

Development Alert: Paramount+ And Peacock Are Reportedly In Discussion For A Potential Merger

Paramount+ and Peacock have reportedly started talks to merge into a single streaming according to a report from The Wall Street Journal.

According to that report, Comcast and Paramount recently met to look at options to possibly merge their streaming services into a single streaming service, among other options. This would bring Paramount’s and NBCUniversal’s content under a single streaming app.

Details are still thin. No pricing, naming, or other details have been decided at this time. At this time, neither company has made any formal announcement about the talks.

Paramount+ had 63 million subscribers at the end of the 3rd quarter of 2023. Peacock recently announced that it hit 31 million subscribers paying for the service. Some subscribers pay for both but merging together will help the services compete with larger services like Max and Disney+.

Both services are still struggling to turn a profit. Paramount+ is expected to become profitable by the end of 2025. No timeline is known for when Peacock will become profitable. Merging the services could also help them reach profitability sooner.

New Channel Alert (Rumour): NBC HD Reportedly In Development On The DStv Platform

Yesterday, MultiChoice had begun work on yet another TV channel for the DStv platform with the initials NBC. Taking to account that there is already Namibian Broadcasting Corporation (NBC) residing within Africa this could as well be a potential high definition (HD) feed.

It's also possible that this could be a seperate TV channel and not one based on the Namibian broadcaster. Notice how the channel is currently residing on channel 111 where MultiChoice often rolled out various pop-up channels by M-Net Movies.

Another would be the distribution quality, as seen above this NBC is currently being tested in HD and while the one in Namibia is still in standard definition (SD). If this were the Namibian NBC, MultiChoice would have placed it in test channel section and not a prestigious channel number.

Could it be that NBCUniversal is looking to introduce a new (pop-up) channel to DStv customers?

MultiChoice revamped the Showmax streaming service during the month which is now in partnership with NBCUniversal. This has led to the addition of content from their studios including Universal Pictures, DreamWorks Animation and Telemundo Studios.

It wouldn't seem as far fetched of a coincidence that the NBC test card would launch around the time all this content came up on Showmax. I mean MultiChoice has numerous projects with NBCUniversal including Universal+ on DStv Stream and soon DStv Glass.

Some guesses for this possible new channel is that they'll start airing shows like Parks And Recreation and The Office which served as the highlight of the new Showmax. Unlike the American version, this one will probably be a watered down/repeat filtered version of the channel.

MultiChoice was scheduled to axe both Me and 1Magic from the DStv platform earlier in the month. NBC had been supplying several content to these channels including The Real Housewives, The Voice, Chicago Med, Law And Order and Young Rock.

1Magic had since then become a Showmax repeats channel with shows like Outlaws and Adulting. It had been long speculated that there could some behind the scenes going on within the company about the closures and if anything it could have something to do with channel 111.

Perhaps the idea of keeping 1Magic had to do with the rollout of the new Showmax. Perhaps they're treating more as a pop-up channel and as for Me that was slated to go off air as well and if anything maybe MultiChoice was looking to make NBC their predecessor.

I say this particularly because there's been various rumours going around that Me's viewership is low as opposed to M-Net City. Me was only catering to Compact and Family while as M-Net City was adored by even on premium as M-Net invested in fresher content unlike Me.

NBC despite housing a number of shows to M-Net and Universal TV could help expand the line-up. I believe there's various content people would love to see again aside from The Office and Parks And Recreation there is also Days Of Our Lives and Parenthood.

Recap To Last Month: Could MultiChoice Be Looking To Replace M-Net's Me With Universal TV?

Last month, it was reported that M-Net's Me and 1Magic would exit MultiChoice's DStv by early February. This was after several consumers had recieved a notification from MultiChoice about the closures with the pay-tv company that had since then gone rogue.

The termination would have come a few weeks before MultiChoice officially launched the rebranded Showmax service. It would form as part of a joint venture with Comcast's NBCUniversal which would bring Peacock's best in class technology and content to the streamer.

NBCUniversal also supplies linear channels such as Universal TV, Studio Universal, E! Entertainment, DreamWorks and Telemundo on DStv. As seen last month, MultiChoice wasn't looking to replace Me leaving viewers to wonder what fate awaited shows like Survivor and The Good Doctor.

M-Net is currently exclusive to premium subscribers and Me was the only means of accessing the content. This lead to further speculation that MultiChoice was looking to prioritise on Universal TV basically another streamlined attempt with select content from Me on there.

The idea didn't seem far fetched as NBCUniversal has minority stake in Showmax and another having to do with the rollout of DStv Glass in partnership with MultiChoice.

Unlike 1Magic, MultiChoice in an ongoing conversation was only able to confirm the closure of Me through their SA department. MultiChoice Africa was able to confirm both closures and highlighting that a replacement "specifically for 1Magic" was in development.

There was no guarantee at this point if content from 1Magic or Me would surface on this channel. But considering that the closures affected consumers of Me it was expected that MultiChoice will make this brand accessible to consumers on the Compact and Family bouquet.

As of right now, both channels continue to operate on the DStv platform with Showmax repeats like Adulting and Outlaws dominating 1Magic and Me airing remaining shows in the form of weekday marathons with other primetime shows airing as double bills.

Reminder: Revamped Showmax Streamer Launches This February And Is Cheaper

Ten months after MultiChoice, Comcast’s NBCUniversal and Sky announced a joint streaming vision for Africa, the new Showmax is here, featuring a refreshed brand and a massive content lineup, all delivered on a powerful new streaming platform.

At the heart of the new offering is the world’s first standalone Premier League plan for mobile, with all 380 games offered live on Showmax Premier League for just R69 a month.

In addition, there are two more Showmax plans available to customers in 44 African countries: Showmax Entertainment on mobile for an unbelievable R39 a month at launch, as well as the Showmax Entertainment plan, where the monthly price falls from R99 to R89 per month.

“There are currently just over 450 million smartphones in the hands of individuals across Africa … and more than 250 million avid football lovers on the continent,” says Marc Jury, CEO of Showmax. “Showmax Premier League is a game-changing product that gives individuals a ticket to the football they love, wherever they are, on the device they always have with them, at a price that’s impossible not to love.”

“Africa is incredibly important to the Premier League and our clubs; 20% of TV audiences on any given matchday come from Africa,” says Richard Masters, Premier League CEO. “We are delighted with this Showmax initiative, which puts the Premier League in your pocket at a new price point so that millions more can enjoy our fantastic competition.”

Core to the success of Showmax’s streaming ambitions in Africa is a new technical platform that is robust and built to scale. With the launch of Showmax, the Peacock streaming platform will be active in more than 70 countries and is continually enhanced by the combined expertise of thousands of engineers. The world-class platform has brought millions of viewers popular events such as Super Bowl LVI, the FIFA World Cup Qatar 2022 final, the Olympics and WrestleMania 39. On 13 January, Peacock’s exclusive AFC Wild Card Game became the biggest live-streamed event in US history, reaching 27.6 million viewers and a record 16.3 million concurrent devices. In 2023, Comcast won a Technology and Engineering Emmy Award for its sports viewing experiences across Peacock, Sky and Xfinity.

“Peacock’s best-in-class technology platform will deliver a world-class streaming experience to Showmax audiences,” said Patrick Miceli, Executive Vice President & Chief Technology Officer, Direct-to-Consumer & International, NBCUniversal. “The Peacock platform was designed from day one to support both live and on-demand content, including the biggest live sporting events, so we look forward to extending that capability and reliability to the new Showmax.”

Alongside the Premier League, the new Showmax also opens the door to a thrilling entertainment universe spanning a wide range of stars and stories across multiple genres. With no fewer than 21 new Showmax Originals launching in February alone, there will be more than 1 300 hours of Showmax Originals produced in the coming year, representing a significant 150% increase in production output compared to the year before.

Complementing this powerful African content slate is an international offering that will give viewers cause for celebration. As a result of MultiChoice’s partnership with Comcast’s NBCUniversal and Sky, Showmax is guaranteed an ongoing supply of the world’s most popular titles from the media giant’s renowned brands, including Universal Pictures, Focus Features, NBC, Peacock, DreamWorks Animation and Telemundo. The stellar content lineup includes films like the latest instalment in the hit Fast franchise, Fast X, and Wes Anderson’s comedy-drama Asteroid City; procedural drama series such as NBC’s The Irrational starring Jesse L. Martin; and Peacock original comedy series Killing It, from the creative team behind Brooklyn Nine-Nine, starring Craig Robinson.

Showmax will also continue to draw from the likes of Paramount, including Mission Impossible: Dead Reckoning and Halo S2 in February, and HBO, with new seasons of House of the Dragon, The Last of Us, True Detective, and The White Lotus on the way.

Showmax’s content offering is further boosted by its focus on the African market and strengthened by the vast creative and commercial presence already established by MultiChoice. “Nobody understands Africa like we do. Showmax is putting the continent first with a powerful streaming service that will revolutionise streaming in Africa in 2024,” says Calvo Mawela, MultiChoice Group CEO.

With the content and platform providing strong foundations for the new Showmax, ease of access for customers is another key business priority. As the first streaming service in Africa to make mobile downloads possible for offline viewing and the first to launch a mobile-only plan, Showmax has now delivered incredibly competitive new price points, with a growing network of payment options available to customers.

This payment ecosystem is facilitated by Moment, another MultiChoice joint venture partner. Working with more than 200 payment partners such as banks, mobile money providers, retailers and payment schemes, Moment is building the broadest pan-African payments network. In addition, DStv customers will continue to have the option of adding Showmax to their DStv bill each month and benefitting from significant discounts. Showmax will be announcing additional partnerships soon that will offer even more value to customers.

The new Showmax app will become available in app stores from 23 January 2024 onward, as part of a staggered migration process across 44 markets. This is an ongoing process that starts next week and will be completed in February this year. Existing Showmax customers will begin receiving communication with information on how to access the new app this week and by 12 February 2024 the new Showmax will be live in all markets.

Could E! Entertainment Also Be Shutting Down On DStv And The Rest Of Africa??? Here's Why

NBCUniversal International has been slowly phasing out the E! brand across European countries. After Comcast had made some budget cuts to the programming, E! Entertainment had to sought out shows like Vanderpump Rules and Below Deck Mediterranean from Bravo.

During the week, both M-Net Movies and E! Entertainment were set to broadcast The Golden Globes but to consumer's dismay E! Entertainment had opted to not broadcast the red carpet. It was viewed as one of the signature looks for the channel alongside The Kardashians.

As mentioned above, E! Entertainment had shuttered in parts of Europe with the UK that closed by 31 December 2023 after 20 years with Germany a year prior on the same date. It lead to growing fear from several DStv consumers that the same fate could await the whole of Africa.

Similar to the likes of 1Magic and Lifetime, most channels to have exited the platform would often distance themselves from their primetime lineup and E! has been falling inline with these former DStv channels.

Besides that, E! Entertainment in the UK had also lost out on the red carpet and various other programs before closing down. Now consumers in Africa are witnessing the same outcome seen in Africa so it's only a matter of time till the channel closes down.

In other developments, MultiChoice is set to lose 3 more channels later in the month: 1Magic, Me and Emmanuel TV. This comes amidst their annual price adjustment and most consumers will wonder why they're paying more if they can't minimise the bloodbath of channels.

DStv Without E! Entertainment??? As NBCUniversal Looks To Close The Channel In The UK

During the week, it was reported that Peacock would be closing down in the UK by the end of 2023. But that's not the only thing NBCUniversal plans to scrap of their bucket list as E! Entertainment is also slated to go dark on Sky and Virgin Media with further content on Hayu.

Hayu serves as the digital counterpart of both E! Entertainment and Bravo which is also operated by NBCUniversal. From 2024, consumers wanting to watch shows like Keeping Up With The Kardashians and Below Deck Mediterranean would need to view it on the streamer.

The news of its demise doesn't come as much of a shock following its closure in Germany by 2022. At the time, it was outlined that the feeds in the UK and Eastern Europe were anticipated to continue but from what we can see that was short lived.

If we had to guess why E! Entertainment was getting culled its probably similar to Disney's reasons for the terminating the FOX/Star general entertainment brand in parts of the world. The latter are putting more focus toward their direct to consumer business which has been making waves for a while now.

NBCUniversal has been cutting back on the original content slate for E! Entertainment which resulted in content from Bravo being added to the lineup. The idea of E! Entertainment becoming a thing of the past wouldn't seem far fetched or at least in regions where Hayu exists.

Hayu is available in United Kingdom, Ireland, Albania, Italy, Australia, Denmark, Canada, Netherlands, Belgium, Philippines, Hong Kong, Germany, Spain, Portugal and Poland. Although Hayu is not available in South Africa or anywhere in Africa the latter would form part of Showmax's existing offering.

Development Alert: Peacock To Cease Transmission In The UK By Next Year, Content To Launch Elsewhere

Peacock is an international streaming service operated by Comcast which features first run series and leverages a vast library of films and series from NBCUniversal. Similar to Showmax, it also featured third party content from the likes of UK's BBC and  ITV brands.

Since it's inception, Peacock has been able to add roughly 30 million paid subscribers which is little compared to Netflix and Disney+ which we fortunate to accumulate over 100 million subscribers. It took over a year for NBCUniversal to just duplicate this in other regions.

Due to some economic factors, Peacock never got a standalone service internationally or at least not by name. In parts of Europe, it is known as SkyShowtime which forms part of a joint venture with Paramount Global which also grants consumers access to Paramount+.

In the UK, that's where things only worsened for the streamer as Peacock was "bundled' in a manner that Disney+ would bundle FX and National Geographic. With that in mind, Peacock didn't have much variety or better yet not all the content was accessible altogether as seen in the United States.

Forming a union on Sky made no sense at all, Comcast owns Sky which is basically the European counterpart of NBCUniversal. It would have seemed logical to get these two together instead of marketing it as standalone now the brand is dying down in the region.

On January 9, 2024, Peacock will officially conclude its services in the UK: the “app” on Sky’s devices will be shut down, and most of its shows on NOW are currently marked as scheduled to be removed by that date.

Some of Peacock’s programming will be redistributed across Sky’s various channels, and some shows will transition to the Hayu app.

In February 2024, MultiChoice and NBCUniversal will unveil a revamped Showmax streaming service which would feature content from Comcast's Sky and NBCUniversal and also leverage Peacock's technology in an attempt to compete with existing streamers like Disney+, Netflix and Amazon Prime Video.

MultiChoice Renews Several Studio Deals Including NBCUniversal, Warner Bros. Discovery, Disney And More

Every year, MultiChoice would usually host a content showcase where they'd display various attractions currently or yet to be seen across their platforms. 2023 was one of those years were for some reason none of this occurred so another option would be the interim results.

Interim results are usually the one way MultiChoice is able to engage with consumers about the performance on their platforms and also a downsized version to the content showcase which reflect mostly toward their assets than 3rd parties.

It is through this report hidden way in a page is the renewal agreement with NBCUniversal, MGM, Amazon, Warner Bros. Discovery, Paramount and Disney for their content distributed to M-Net and linear channels. Of course, MultiChoice doesn't provide a duration or terms to these new agreements as seen with Disney back in 2021.

It was also highlighted that they had reduced 3rd parties cost which could mean a number of things: First with Showmax 2.0. set to rollout in the first quarter of 2024 MultiChoice would have to reduce their portfolio so that NBCUniversal can use their 30% stake in the platform.

M-Net had undergone a similar route following the rollout of Disney+ and had since then (co-)produced a number of shows like Devil's Peak, Reyka, Recipe For Love And Murder, and Blood Psalms.

Another would have to pertain to their linear offering, most companies highlighted provide a selection of factual, lifestyle, general entertainment and children's channels. It's likely that one of these channels are going dark soon if not building the lineup for another channel.

National Geographic possibly becoming a member of A+E Networks could mean the end of National Geographic Wild as A+E Networks sustains one channel. Nickelodeon possibly being sold to Warner Bros. Discovery would signal the end of Nicktoons and Nick Jr. as linear channels.

Warner Bros. Discovery Looking To Acquire Assets Of Companies Flirting With Or For Filing For Bankruptcy, Hints At The Demise Of Paramount Global And NBCUniversal

Chief Executive David Zaslav and board member John Malone both made comments this week suggesting the company is paying down debt and building up free cash flow to set up acquisitions in the next two years of media businesses suffering from diminished valuations.

The targets could be companies flirting with or filing for bankruptcy, Malone said in an exclusive interview with CNBC on Thursday. While U.S. regulators may frown at large media companies coming together because of overlaps with studio, cable or broadcasting assets, they'll be much more forgiving if the companies are struggling to survive, Malone told David Faber.

"I think we're going to see very serious distress in our industry," Malone said. "There is an exemption to the antitrust laws on a failing business. At some point of distress, right, then some of the restrictions, they look the other way."

Media company valuations have been plummeting amid streaming video losses, traditional TV subscriber defections, and a down advertising market. This has affected Warner Bros. Discovery as much as its peers. The company's market valuation recently fell below $23 billion, its lowest point since WarnerMedia and Discovery merged last year. The company ended the third quarter with about $43 billion in net debt.

Warner Bros. Discovery is trying to position itself to be an acquirer, rather than a distressed asset, itself, by paying down debt and increasing cash flow, Zaslav said during his company's earnings conference call this week. Warner Bros. Discovery has paid down $12 billion and expects to generate at least $5 billion in free cash flow this year, the company said.

"We're surrounded by a lot of companies that are – don't have the geographic diversity that we have, aren't generating real free cash flow, have debt that are presenting issues," Zaslav said Thursday. "We're de-levering at a time when our peers are levering up, at a time when our peers are unstable, and there is a lot of excess competitive – excess players in the market. So, this will give us a chance not only to fight to grow in the next year, but to have the kind of balance sheet and the kind of stability ... that we could be really opportunistic over the next 12 to 24 months."

Still, Warner Bros. Discovery also acknowledged it will miss its own year-end leverage target of 2.5 to 3 times adjusted earnings as the TV ad market struggles and linear TV subscription revenue declines.

Buying from distress

Malone has some experience with profiting from times of distress.

His Liberty Media acquired a 40% stake in Sirius XM over several years more than a decade ago, saving it from bankruptcy. Since then, the equity value of the satellite radio company has bounced back from nearly zero to about $5 per share. Sirius XM currently has a market capitalization of about $18 billion.

"It made us a lot of money with Sirius," Malone told Faber.

While Malone didn't name a specific company as a target for Warner Bros. Discovery, he discussed Paramount Global as an example of a company whose prospects seem shaky. Paramount Global's market valuation has slumped below $8 billion while carrying about $16 billion in debt.

Malone noted that Paramount's debt was recently downgraded. "I think that they're running probably negative free cash flow," he said.

Paramount Global's third-quarter cash flow was $377 million, and the company has forecast a return to positive free cash flow in 2024.

While Paramount Global shares have fallen precipitously since Viacom and CBS merged in 2019, there are signs the company is shoring up its balance sheet. CEO Bob Bakish said earlier this month Paramount Global's streaming losses will be lower in 2023 than 2022, and the company expects further improvement to losses in 2024. The company closed a sale for book publisher Simon & Schuster for $1.6 billion and will use the proceeds to pay down debt.

Paramount Global is one of the few assets that logically fits Malone's vision of a media asset that would have regulatory issues as an acquisition with potential distress concerns. Comcast's NBCUniversal, another potential merger partner, will lose more than $2 billion this year on its streaming service, Peacock, but the media giant is shielded by its parent company, the largest U.S. broadband provider.

"Warner Bros. [Discovery] now is making money. Not a lot, but they're making money," Malone said. "Peacock is losing a lot of money. Paramount is losing a ton of money that they can't afford. At least [Comcast CEO] Brian [Roberts] can afford to lose the money."

Paramount Global's controlling shareholder Shari Redstone is open to a transformative transaction, CNBC reported last month. Puck's Dylan Byers recently reported that industry insiders have speculated Warner Bros. Discovery might pursue an acquisition of Paramount Global after the 2024 U.S. presidential election.

A combination of NBCUniversal and Paramount Global also has strategic logic, but the combination of two national broadcast networks — Comcast's NBC and Paramount Global's CBS — would present a significant regulatory hurdle. Warner Bros. Discovery doesn't own a broadcast network, making an acquisition of CBS easier.

Spokespeople for Paramount Global and Warner Bros. Discovery declined to comment.

While Malone said all legacy media companies should be talking to each other about merger synergies, he acknowledged valuations may have to fall farther to get regulators on board with further consolidation. Malone predicted that could happen in the same timeline Zaslav gave — within the next two years.

"Eventually maybe there'll be regulatory relief," Malone said. "Out of distress usually comes the reduction in competition, increased pricing power, and the opportunity to buy assets at a deep discount."