Versant Spinoff: How It Impacts TV, Streaming, and Sports
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New york — May 17, 2024 — the media world is undergoing a notable transformation with the recent Versant spinoff from Comcast/NBCUniversal. This move will reshape how consumers access their favorite television channels, streaming services, and live sports programming. What this means for the future of TV and sports is a major question. With a clear understanding, consumers can prepare for changes.
Versant: What the Comcast/NBCUniversal Spinoff Means for you
The media landscape is about to shift. Comcast and NBCUniversal are launching Versant, a new spinoff entity, by the end of the year. Sports fans and media consumers alike are asking: what does this mean for the future of television and streaming?
What is Versant?
Versant is a new company created from Comcast/NBCUniversal’s existing cable networks. The portfolio includes USA, CNBC, MSNBC, Oxygen, E!, SYFY, and Golf Channel. Notably absent are the NBC broadcast channel, Bravo, and Peacock.
In addition to these networks, Versant will also manage digital assets such as Fandango, rotten Tomatoes, GolfNow, GolfPass, and SportsEngine.
The Corporate Structure
Versant will operate as an autonomous company, separate from comcast/NBCUniversal. Mark Lazarus, formerly chairman of NBCUniversal Media group, will serve as CEO.
Accessing Versant Channels
For now, accessing Versant channels will remain unchanged. The cable channels that will comprise Versant all have distribution deals locked down untill 2027, with most coming up for renewal in 2028,
according to CNBC.
This means that your current pay TV subscriptions will continue to provide access to these channels until at least 2027. Whether you access Golf Channel through DirecTV or CNBC through YouTube TV, your access will remain the same.
Did You Know?
Cable television distribution deals are complex agreements that determine how channels are packaged and sold to consumers.These deals often include carriage fees, which are payments that cable companies make to channel owners for the right to carry their programming.
Streaming Strategy
Versant will not launch a unified streaming platform. Rather, individual brands within Versant will develop their own digital strategies. This could involve launching standalone streaming services or licensing content to existing platforms.
For example, MSNBC and CNBC could perhaps create a joint direct-to-consumer service. Alternatively, Golf Channel might license its programming to ESPN+ or even Peacock.
The key takeaway is that each brand has the autonomy to determine its own streaming strategy.
The Future of Sports Programming
Many popular sports properties air on both NBC and cable channels like USA. These include Premier League, golf, the Olympics, WWE, WNBA, and NASCAR.
Rick Cordella, president of NBC Sports, stated last November that all Versant-owned networks will continue to air live sports after the spinoff.Lazarus has since confirmed this.
From a sports outlook, the partners that we have on cable assets like Golf Channel and USA, we’re going to fulfill every obligation, every promise we made to them across NBC.
Rick Cordella, President of NBC Sports
This means USA will continue to broadcast Premier League soccer, WWE’s Smackdown, NASCAR races, the U.S. Open and Open Championship (British Open), and WNBA games starting next year. Golf Channel will maintain its PGA Tour events and the Ryder Cup.CNBC will continue to feature Olympic sports, and E! will continue to air figure skating. All networks that contribute to NBC’s Olympics coverage will continue to do so.
Competition for Sports Rights
Versant will compete with NBC for sports rights. CEO mark Lazarus has already engaged in discussions with MLB and NWSL about acquiring live game rights.
We’re looking for sports deals that drive distribution, diversify ad sales, and have a value,
Lazarus said. He also noted that Versant is not interested in Formula One rights.
This positions Versant as a new potential bidder for sports leagues in the coming years.
Acquisition Strategy
Despite speculation that Versant might acquire other cable networks, Lazarus has indicated that the company does not plan to do so.
lazarus said he has little interest in accumulating more debt attached to low-growth assets. If a cable network also had associated businesses that had better growth prospects, that could be more appealing on a case-by-case basis,
according to CNBC.
NBC’s Role Post-Launch
While Versant will operate independently, NBC will play a minor role.NBC will reportedly sell advertising inventory for Versant for the next two years.
This arrangement will provide Versant with a stable revenue stream as it launches.
Regional Sports Networks
The NBC-branded regional sports networks, including NBC Sports Bay Area, NBC Sports California, NBC Sports Philadelphia, and NBC Sports Boston, will remain under the Comcast umbrella.
Location
Versant is temporarily operating out of NBC’s 30 Rock building in New York City. The company plans to move to a permanent location within Manhattan.
The future location of the NBC Sports properties that used the Stamford, CT studios, such as Golf Channel, is still undetermined. Versant’s sports studio programming will no longer be based in the NBC Sports studios.
