Bloomberg reports that Comcast is trying to cut as much as $1 billion from its TV network expenditure.
It disclosed that cash will be shifted to bolster other sections of the media giant's operations, such as its faltering streaming platform, Peacock, which failed to acquire any new customers in the most recent quarter.
Apparently, executives are also considering layoffs and budget cuts for new programs as additional cost-cutting options. At this time, no decisions have been decided.
After years of prioritizing subscriber growth above all else, legacy media businesses are now cutting costs rapidly in order to achieve profitability.
Yahoo Finance contacted Comcast for comment but did not immediately receive a response.
Warner Bros. Discovery, for instance, has canceled various projects and laid off tens of thousands of employees in order to reduce costs by $3 billion over the next two years.
WBD intends to invest these cost savings in streaming and ocontent.
Other networks have also experimented with alternative distribution and pricing structures to diversify their audiences and compensate for slowing growth, particularly through advertising.
Disney and Netflix are the most recent platforms to adopt an ad-supported tier, with Disney planning to introduce its ad option on December 8.
This week, Netflix announced two senior hiring as part of its efforts to launch an ad-supported tier next year.
Apple TV+ is reportedly rumored to be considering an ad-supported alternative, while Warner Bros. Discovery has announced that it will provide three levels when the merged HBO Max-Discovery+ platform launches next summer.
Industry observers are disappointed by Peacock's meager 13 million subscribers, especially in light of NBCUniversal's dominant position in entertainment.
Still, NBCUniversal has remained optimistic about Peacock's future, doubling down on the advertising opportunity and new ad formats during its May NewFronts presentation.
On the results call for the month of July, the business reiterated that, despite "choppiness" in the overall ad market, the increased streaming competition and impending ad-supported rollouts reinforce Peacock's three-tiered pricing strategy.
CEO Jeff Shell stated, "As far as advertising in general, both linear and Peacock, we are one of the largest advertisers with over $10 billion in advertising."
Adding: "We had the advantage of studying the market before entering, and we believe we chose the correct business plan, which is essentially an extension of our existing business, not a new business, but based on a dual revenue stream of subscription and advertising."
