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Comcast (CMCSA+1.27%) is exploring a major restructuring that could spin off its cable networks, marking another seismic shift in the streaming wars. The entertainment conglomerate is also seeking potential partnerships for its streaming platform Peacock as traditional media companies scramble to adapt to changing viewer habits.
During the third-quarter earnings call on Thursday, Comcast president Mike Cavanagh told investors that the proposed new spinoff would be a “well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks.” Comcast’s cable networks feature Bravo, E!, Syfy, Oxygen True Crime, and USA Network.
The new company, however, would not include the broadcast network NBC, Peacock, or other Comcast businesses like its theme parks and NBCUniversal studios.
Comcast stock rose over 3% during intraday trading on Thursday.
Warner Bros. Discovery (WBD+2.42%) may follow suit, with CEO David Zaslav reportedly weighing splitting its streaming and studio assets from its cable network business.
Cavanagh also said the company is open to streaming partnerships to help boost subscriptions and viewership. In July, Disney and Warner Bros. Discovery teamed up to offer a new bundle that combines all of their streaming platforms into one monthly subscription plan.
Netflix (NFLX+1.37%), the reigning leader in streaming, has said that it does not currently see a need for a bundling strategy.
Comcast’s third quarter, by the numbers
Overall, Comcast’s revenue increased by 6.5% year-over-year in the third quarter to $32.1 billion, fueled by viewership from the Paris Olympics and successful new film releases like Despicable Me 4.
Peacock added 3 million paid subscribers during the quarter, thanks again to it holding the exclusive streaming rights of the Paris Olympics, bringing its total of paid subscribers to 36 million. The streaming platform’s revenue soared 82% year-over-year to $1.5 billion.
In contrast, Comcast lost 365,000 cable subscribers during the same period.