NBCUniversal, which has already been evaluating its stake in the declining pay-TV business, is considering shuttering the Universal Kids cable network.
The move, set to take effect March 6, comes as NBCU prepares to spin off most of its cable networks into a new publicly traded company that will be led by longtime executive Mark Lazarus. This transaction is expected to be completed by the end of 2025. Bravo is the notable holdout, expected to remain in the company’s core group alongside NBC, Telemundo and the local station portfolio.
“NBCUniversal remains committed to family entertainment, including the award-winning Illumination and Dreamworks Animation brands, as well as kids-focused programming on Peacock,” a company spokesperson told Deadline in a statement.
Universal Kids was spun off from the network formerly known as Sprout. This joint venture with PBS Kids competed during the dawn of YouTube and streaming, when Nickelodeon, Disney and Time Warner were its main competitors in cable television for young viewers and families. In the current environment of cord-cutting and declining pay-TV viewership and advertising, returns on continued investment in Universal Kids have become more uncertain. More than many of its media peers, NBCU has been willing to proactively recognize the changing winds, shutting down NBC Sports Network in 2021 and Esquire years before.
As a brand, Universal Kids has remained important to NBCU and its parent company Comcast, which last year opened the Universal Kids Resort theme park in Frisco, Texas. The company also positioned Universal Kids as a synergistic home for DreamWorks Animation programming following Comcast’s acquisition of DWA in 2016.
Along with YouTube, whose kids-focused arm has attracted a significant number of viewers, major subscription video-on-demand services like Apple TV+, Prime Video and Netflix have made aggressive moves into the kids and entertainment sectors. ‘animation. The volatile state of the market was clearly demonstrated last month, when HBO and Warner Bros. Max. Discovery have refused to renew a long-term agreement with Sesame Street. The decision left the 51-year-old children’s TV staple without a TV or streaming house to fund the production of new episodes.
