NBCU Is Exploring Launching a Sports Cable Network
NBCU Is Exploring Launching a Sports Cable Network

NBCU Is Exploring Launching a Sports Cable Network

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The channel would primarily carry sports that are also streamed on NBCU’s Peacock platform. The network would be offered to cable and satellite distributors as part of specialty packages of similar channels. A final decision on the network has yet to be made, and discussions are still in early stages. NBCU is in the process of spinning off most of its cable networks into a new company named Versant. The talks are surprising because NBCU, like some other traditional media companies, has been grappling with viewers cutting the cord to cable, and turning to streaming services. The company is spending about $2.5 billion annually for its NBA package, The Wall Street Journal has previously reported.

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NBCUniversal is discussing launching a sports cable network that could debut as early as the fall, people familiar with the matter said.

The channel would primarily carry sports that are also streamed on NBCU’s Peacock platform. The network would be offered to cable and satellite distributors as part of specialty packages of similar channels, the people said.

Discussions are still in early stages, and a final decision on the network has yet to be made, according to the people.

The talks are surprising because NBCU, like some other traditional media companies, has been grappling with viewers cutting the cord to cable and turning to streaming services. NBCU is in the process of spinning off most of its cable networks into a new company named Versant.

Yet live sports is among the most lucrative segments in television, and hardcore sports fans are among cable’s stickiest.

NBCU executives are exploring a sports-cable channel with the idea that it would complement, rather than cannibalize, its Peacock service and provide a hedge should it grow slower than officials expect.

The potential channel is “not going to hurt Peacock, it’s a pay-TV product for people who are stubborn about leaving the bundle,” said Patrick Crakes, a sports media consultant. Crakes added it is hard to make money on sports solely via streaming.

NBCU, which is owned by Comcast, is making a big push into sports programming with a new deal carrying NBA basketball. NBCU is spending about $2.5 billion annually for its NBA package, The Wall Street Journal has previously reported.

Starting in the fall, NBCU planned to show games on both the NBC broadcast network and Peacock.

NBCU is hoping the addition of the NBA will boost subscriptions to Peacock, which lags behind other streaming services. Comcast said on its last earnings call that the service had 41 million subscribers.

In advance of the NBA, Peacock raised its subscription fees $3 to $10.99 a month for the ad-supported version and $16.99 for commercial-free. All sports content has advertising in it regardless of the platform.

To protect Peacock, the people familiar with the discussions said, NBCU wouldn’t make the channel available in the big broad channel packages that typically include networks with sports such as Disney’s ESPN and Fox Corp.’s Fox Sports 1. Instead, it would only offer the channel through specific cable packages.

Cable and satellite operators such as Charter’s Spectrum and DirecTV have started offering so-called genre packages to give subscribers more choice and financial flexibility in what networks they receive.

Besides the NBA, sports on Peacock includes simulcasts of NBC’s “Sunday Night Football” and an exclusive NFL game, as well as golf, college football, the WNBA, Olympics and Premier League Soccer.

NBC previously operated a sports network but shut it down in 2021 because its ratings were small and it wasn’t competitive with ESPN. The few marquee events it did carry migrated to the USA Network, which will be part of Versant.

Write to Joe Flint at Joe.Flint@wsj.com

Source: Msn.com | View original article

Source: https://www.msn.com/en-us/entertainment/news/nbcu-is-exploring-launching-a-sports-cable-network/ar-AA1JaeA0

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