One of the bigger stories about connected TV in 2024 broke in late November just days before most advertisers were anticipating Thanksgiving weekend. Comcast, for decades synonymous with the dominance of cable TV, said it would spin off many of its cable television networks into a separate, publicly traded company. This move involves creating a new entity that will include networks such as MSNBC, CNBC, USA Network, Oxygen, E!, SYFY, and the Golf Channel. Additionally, the spin-off will encompass digital assets like Fandango and Rotten Tomatoes.
Why does this matter? Because the announcement is driven by the declining value of traditional cable networks as more consumers shift towards streaming platforms. This trend has prompted media companies to reassess their cable operations. Comcast’s strategy aims to separate its cable networks from its more profitable divisions, such as its internet service provider and mobile operations.
If you are an advertiser who has not yet embraced connected TV, this news should be a wake-up call.
Essential Details about the Comcast Deal
The new company, temporarily referred to as “SpinCo,” is expected to generate around $7 billion in annual revenue and reach approximately 70 million U.S. households. The transaction is structured as a tax-free distribution to current Comcast shareholders and is anticipated to take about a year to complete, pending regulatory approvals.
This move reflects a broader industry trend of media companies divesting their linear TV assets in response to the growing dominance of streaming services. By spinning off its cable networks, Comcast aims to streamline its operations and focus on areas with higher growth potential, such as streaming and broadband services.
Advertisers should pay very close attention to the sports assets affected by the spinoff. Live sports is a huge growth area for CTV advertising. Some 64% of U.S. CTV viewers report being likely to pay attention to ads while watching live sports, making it an attractive proposition for marketers aiming to grow their brands. Nearly half of advertisers plan to allocate more funds to live sports streaming than in previous years, surpassing traditional linear sports investments.
A New Direction for the Golf Channel?
The Golf Channel will be part of a new, separate publicly traded company. But the future of the Golf Channel remains somewhat uncertain. Although it will be part of this new entity, the network has existing media rights agreements with the PGA Tour and LPGA Tour until 2030, and U.S. rights to the Open Championship until 2039. However, there have been rumors that the PGA Tour might consider purchasing the Golf Channel or its assets. This is partly because the PGA Tour has been expanding its own broadcasting capabilities and infrastructure.
The PGA Tour operates its own streaming service, PGA Tour Live, which airs on ESPN+. If the PGA Tour were to acquire The Golf Channel, it would need to navigate how content from both The Golf Channel and PGA Tour Live on ESPN+ could be integrated or differentiated. This could involve decisions about which content airs on which platform and how to avoid overlap while maximizing audience engagement across both traditional and digital channels. The PGA Tour also might need to negotiate new terms with ESPN+.
The Golf Channel will continue to operate under this new company structure. But its long-term future could be influenced by potential changes in ownership or further strategic shifts within the broader sports broadcasting landscape.
More Live Sports Is Inevitable
Me? I’m thinking the Golf Channel becomes a streaming asset for the PGA Tour. This will give the Golf Channel more visibility and brand cachet. In turn, there will be more CTV advertising opportunities for life golf events. Netflix offers a potential model for how the PGA Tour could operate the Golf Channel. Netflix’s popular boxing match between Jake Paul and Mike Tyson featured not only the actual event, but related content. For instance, Netflix aired a documentary series that provided an inside look into the training camps and personal lives of Jake Paul and Mike Tyson as they prepared for their boxing match.
Pro golf is a natural sport for this kind of content given the many interesting personalities who have attracted interest to the sport, including Scottie Scheffler, Rory McIlroy, and Wyndham Clark.
The spinoff has other implications for CTV advertising. As SpinCo becomes a standalone entity, it may seek to expand its portfolio through acquisitions or partnerships, potentially increasing its CTV capabilities. This could lead to more advertising opportunities on connected platforms, especially in sports and entertainment content.
What Advertisers Should Do
Big picture: advertisers really need to embrace streaming platforms. With Comcast’s shift away from traditional cable, advertisers should focus on digital and streaming platforms where audiences are increasingly migrating. This includes using the capabilities of CTV for more targeted and interactive advertising campaigns.
Given the multi-device nature of modern media consumption, advertisers should design campaigns that integrate across different platforms, including social media and mobile devices, to create a cohesive brand experience.
And of course, CTV offers advanced targeting features that allow advertisers to reach specific demographics and interests with precision. This is particularly beneficial for engaging viewers during live sports events, which are highly popular on streaming platforms.
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