Image Source: Alex Sherman
Key Takeaways:
- NBC is set to have a "Legendary February" with a slew of major sports events, including the Winter Olympics, Super Bowl, and NBA All-Star game
- The network has spent billions of dollars to acquire rights to air these events, and their success will be a major test for NBC’s strategy
- NBC has become a sports-first entity, with sports programming becoming a major component of its business
- The network’s focus on sports is a response to the changing media landscape, with cord-cutting and streaming services changing the way people consume entertainment
- NBC’s decision to go big on sports is an effort to keep the pay-TV bundle afloat and boost Peacock subs
Introduction to NBC’s "Legendary February"
NBC is gearing up for a massive month of sports programming, with a lineup of events that promises to be "legendary." As NBC Chief Marketing Officer Jenny Storms puts it, "Legendary February" is all about the sports that will be aired by NBCUniversal, the subsidiary of Comcast. The month kicks off with the Milano-Cortina Winter Olympics, followed by the Super Bowl, and then the NBA All-Star game. These events will air on NBC and its subscription streaming service, Peacock, and are expected to draw huge audiences. As Storms notes, "We have a little bit of an advantage in the sports category that we may not quite have in other ones."
The Evolution of NBC’s Business Strategy
In recent years, NBC has undergone a significant transformation, shifting its focus from scripted entertainment to sports programming. While the network still produces and airs scripted shows, its business strategy has become increasingly centered around sports. As NBC Sports head Rick Cordella notes, "Sports is harder. Sports is relationships. Sports is production. Sports is reach of broadcast. And so we have a little bit of an advantage in the sports category that we may not quite have in other ones." This shift is a response to the changing media landscape, with cord-cutting and streaming services changing the way people consume entertainment. As the article states, "The massive cord cutting has, of course, led to a significant change in the business of media."
The Rise of Sports Programming
Sports has become a major component of NBC’s business, with the network spending billions of dollars to acquire rights to air major events. The return on this investment will be judged by a mixture of advertising revenue, distribution value, and the value of these events for Peacock. As the article notes, "The run of premier sports events will be a major test for NBC after it spent billions of dollars to acquire rights to air them." The success of these events will be crucial in determining the effectiveness of NBC’s strategy. For example, the article states that "Sunday Night Football" averaged 23.5 million viewers a game this year, and the NBA All-Star game is expected to draw a huge audience.
Competition from Streaming Services
NBC faces significant competition from streaming services such as Netflix, Amazon, and Apple, which have deep pockets and a strong focus on scripted entertainment. As the article notes, "Disney has a $200 billion market valuation – far larger than NBCU, which is just a division of internet giant Comcast, whose entire market cap is just over $100 billion." However, NBC believes that its focus on sports gives it an advantage in this area. As Cordella notes, "You look at where the competition has come from, at least in the latest media, it’s been the entertainment side." NBC’s strategy is to use sports to drive subscriptions to Peacock and keep the pay-TV bundle afloat.
Cavanagh’s Perspective
Comcast co-CEO Mike Cavanagh disagrees that sports has taken over as NBC’s main attraction. As he notes, "I wouldn’t say that. Have you watched ‘Stumble’? Have you watched ‘St. Denis [Medical]’? We don’t want to be a sports-only service. That’s not the plan." However, the numbers tell a different story. NBC’s primetime schedule is the lightest it’s been on scripted comedies and dramas in its history, and the network has spent billions of dollars on sports rights. As the article states, "Just follow the money. NBC’s primetime schedule is the lightest it’s been on scripted comedies and dramas in its history." Cavanagh’s comments suggest that he is trying to balance the needs of different divisions within NBC, but the reality is that sports is now a major driver of the network’s business.
The Future of NBC’s Strategy
NBC’s focus on sports is a long-term strategy, and the network is committed to making it work. As the article notes, "NBC has decided to go big on sports to keep the pay-TV bundle afloat while also boosting Peacock subs for those who have opted out of cable." The success of this strategy will depend on the network’s ability to attract and retain subscribers, as well as its ability to negotiate favorable rights deals with sports leagues. As Cordella notes, "We have a little bit of an advantage in the sports category that we may not quite have in other ones." With its strong lineup of sports events and commitment to Peacock, NBC is well-positioned to succeed in the changing media landscape.
https://www.cnbc.com/2026/01/15/nbcuniversal-leans-into-sports.html
