Cable networks like CNN were once important assets in the entertainment world. Now they've become toxic, which is why Comcast removed them last month, and Warner Bros. Discovery (WBD) is currently considering doing the same.
“Warner announced Thursday that it is reorganizing its corporate structure from its streaming and studio division into a separate global linear television division.” report extreme left Hollywood Reporter. “The studio said it will begin the initial stages of a new corporate restructuring immediately and expects this effort to be completed by mid-2025.”
In a sign of how the pay-TV business is struggling, WBD follows rival Comcast's announcement that it plans to separate its unprofitable cable network from its movie and TV studio's entertainment and parks businesses. It’s a movement.”
Bog Iger, CEO of Disney Grooming Syndicate, has already floated the idea of a similar separation.
The report adds that WBD's plans “seem to be derived from all linear things”. [TV] Spun off assets into a holding company to return the core of the company to a growth trajectory [because] cable business [has] becomes a drag on profits[.]”
The report notes that cable packages (or bundles) are “quickly losing popularity among consumers, who instead spend money on individual streaming services.”
“Last year, the major pay-TV companies collectively lost about 5 million subscribers, with Comcast alone losing 2 million subscribers.”[.]”
So what's going on here?
Well, the good news is that Hollywood has no choice but to produce television productions that people actually want to watch. If they don't, we won't subscribe to their streaming outlets and streaming is the future.
Pay TV, linear TV, cable TV and satellite TV have been cash cows for decades. why? That's because cable's monopoly has forced us into bundles (or packages) that include dozens of networks we've never seen. Nevertheless, you still had to pay for these networks because they were part of your cable package. This is called the freight charge, and it is this freight charge that has artificially kept underground ratings networks like CNN, MSNBC, Comedy Central, and MTV afloat past their launch date.
As we know, these networks can never survive on merit alone (i.e., revenue based on advertising fees based on viewership). But they have remained afloat by rigging the cable game with tens of millions of households subsidizing these stations.
Streaming has changed all that. Merit is back. Disney, Comcast, and WBD can't do the same thing with their streaming services as they do with their crappy cable networks. They are forcing us to subsidize them. Streaming services need to bring us the shows we actually want to watch.
That's why millions of people are canceling their ballooning cable bills and turning to streaming. These lost transportation costs, billions of dollars a month, are devastating Hollywood's bottom line. As a result, all of these cable networks are a drag on stock prices and are also known as toxic assets.
By separating these networks from WBD Mothership, they won't be a drag on Mothership's stock price. Eventually, as the stock prices of the spin-off companies made up of the dying cable network decline, these assets will be sold for parts and parts until they run out, or until CNNLOL becomes an add-on to a streaming service like It will be sold as. Max — An addon that no one pays attention to.
For those of you still stupid enough to subscribe to cable TV, here's the best news. Streaming offers free shows that will blow your mind. The move to streaming isn't meant to line Disney or Netflix's pockets. If you're already paying for high-speed internet, just buy a Roku player (about $60) and you'll be able to watch more TV for free than you've ever seen before. First up is Pluto, FreeVee, Tubi, and RokuTV. Sure, there are ads, but so is cable TV, which you pay through the nose for. It's completely free – movies, TV shows, sports, true crime, news…
This shift to streaming is a return to a business model in which left-wing entertainment companies must create content that people actually want to watch. This is a cultural victory for ordinary people.
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