NBCUniversal is parting ways with many of its cable networks, but the company will continue to sell all the commercials that appear on those outlets for the next two years.
NBCU and Versant, the company that parent Comcast is spinning off, have reached a commercial-services agreement that will allow NBC to sell Versant’s U.S. advertising inventory through the next two “upfront” cycles, when TV networks try to sell the bulk of their commercial time. Versant has a portfolio of cable networks that includes MSNBC, USA and CNBC, among others.
Mark Marshall, NBCU’s chairman of global advertising and partnerships, will continue to manage sales strategy and revenue for both companies’ properties, while Tom Winiarski, an NBCU veteran, will move to Versant to serve as executive vice president of ad sales strategy and monetization. Winiarski has worked as president of platform monetization at NBCU for the past five years.
“By entering into this partnership with Versant, we’re maintaining that simplicity for our partners and ensuring a single, dedicated sales team will represent the companies’ collective inventory and drive revenue for all the iconic IP that our viewers love,” Marshall said in a prepared statement.
While cable properties are under scrutiny in the streaming era, as TV viewers move to watch scripted favorites on broadband hubs, they have been an integral part of NBCU’s sales strategy for years. According to media buyers, NBCU often uses cable properties like Bravo or E! to help advertisers get additional impressions with viewers, and their use can help sweeten some of the deals NBC strikes for more premium assets like its flagship broadcast network.
NBCU and Versant will still be partners in various endeavors. Versant’s cable networks, for example, are expected to continue to show certain sports events under rights deals struck between NBCU and various sports leagues.
“We’re building Versant as a new, modern media company equipped with industry-leading brands across news, sports and entertainment, and the ability to strike the right partnerships to fuel investment and drive revenue,” said Mark Lazarus, Versant’s CEO, in a statement. “NBCUniversal operates a best-in-class advertising sales and strategy division, and partnering with Mark Marshall and his team, alongside Tom Winiarski in his new role, will enable Versant to operate seamlessly and with agility from the start.”
The two companies may have devised an ad-sales arrangement that will help in the present, but what will happen in the future? Media buyers are curious as to whether NBCU will be able to continue to sell Versant’s commercial inventory — the company has sold ad space for Apple News for several years — and what might happen if it can no longer do so.
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