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Comcast’s Broadcast Television and Cable Networks Segment Outlook

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Comcast’s broadcast television

Comcast’s (CMCSA) NBCUniversal broadcast television earns the majority of its revenues from advertising and retransmission. According to Comcast, the company expects retransmission revenues of around $1.4 billion in 2017.

According to Comcast, it had closed the gap in advertising revenues between the company and competitor CBS (CBS) by focusing on programming that would garner more viewers and have a larger platform. The company has also stated that its current sports programming is going strong in terms of advertising revenues, including the Olympics. Comcast is the official US broadcaster of the Olympics through 2032. Late last year, Comcast’s NBCUniversal announced a new channel that will launch in 2H17 and will focus on content centered around the Olympics.

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Comcast’s cable networks

Comcast’s (CMCSA) cable networks include MSNBC, Syfy, Bravo, and other sports networks that together reach around 27 million viewers in the United States (SPY). The company’s cable networks business acquires sports programming rights from third parties and also licenses its original content to other cable and broadcast networks and SVOD (subscription video on demand) services like Hulu and Netflix (NFLX).

According to Comcast, the rising number of entrants in the SVOD and OTT (over-the-top) space has meant that there is more demand for its content, which is also indicative of higher content licensing revenues for the company.

The company’s Cable Networks business is still growing, albeit slowly and in single digits. Comcast also expects its Telemundo network to grow further in the United States (SPY).

Comcast’s Telemundo network produces and distributes content in Spanish in the US and in international markets. This network currently holds the Spanish-language broadcast rights in the US to the FIFA Soccer World Cup through 2026 and for certain NFL games through 2022–2023.

Comcast expects that these sports programming rights will further fuel growth for Telemundo. As the above chart shows, Comcast’s cable networks made up 29% of Comcast’s NBCUniversal total revenues of $8.5 billion in fiscal 4Q16 with revenues of $2.5 billion.

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