It has not even been a full year since Sean “Diddy” Combs launched Revolt TV back in October of 2013 and yet the network is already facing trouble thanks to the major merger proposal between Time Warner Cable and Comcast.
According to the New York Post, the music channel is struggling to expand its current 25 million-household reach because the proposed merger is going to drastically increase consolidation in the cable industry.
With Revolt TV being partially owned by Comcast, the proposed merger is discouraging other companies from picking up Revolt TV, which could be a major financial issue for the new network.
The Post reported that the average cable channel takes $100 million to get launched.
Advertising is the primary source of revenue for many networks, but since other cable companies are not picking up Revolt TV, the network is less desirable to advertisers.
In other words, limited viewers means limited advertising.
According to Revolt TV CEO Keith Clinkscales, however, there is nothing for the new network to be worried about.
“Like most start-ups, you have challenges of growing the business,” Clinkscales said in an interview Thursday, according to The Post. “The good news is that we had deals in place with Comcast and Time Warner Cable. They have been excellent partners. However, the merger discussions caused the whole industry to slow down. There’s a general wait and see on a lot of things.”
Another plus side for the network is its hip-hop mogul owner.
According to The Post, Combs’ appeal to a younger demographic is helping pull in at least some advertising dollars.
Young viewers are one of the most desirable demographics to advertisers and Combs tends to get their attention.
In fact, Clinkscales said that Combs’ presence is exactly what secured Revolt TV’s deal with auto giant Fiat.
While Fiat has been a huge advertising success for Combs’ network, some sources say that even Fiat’s help isn’t enough.
“They’re so off business plan right now,” one source reportedly told The Post about Revolt TV. “They have to find outside investors.”
Despite Revolt TV’s troubles, things are still financially steady for Combs who is still one of the wealthiest men in the hip-hop industry.
Earlier this week, Combs purchased a $40 million estate in Los Angeles.