Why This Might Be Cable’s Final Hope
By Movieguide® Contributor
The legacy media companies are all shedding their cable assets in a unique way — creating siloed companies to take on the failing businesses — but this approach might just save linear TV.
Disney made waves in 2023 when CEO Bob Iger hinted that the company may be looking to sell off its linear TV assets including ABC, FX and possibly even ESPN. Though the company later retracted the statement, this idea seems to have stuck around the industry, and a year later, other companies followed through on that approach.
While there have yet to be any major sales between companies, Warner Bros. Discovery and Comcast have both announced they are creating new companies which will take control of their TV assets, while the rest of their business will remain the same. Both have stated these splits will benefit cable by providing the networks with the attention they need to perform, as they have been placed on the back burner for years while streaming sites were built up. The writing on the wall, however, reveals that the networks are being left out to dry as they crash and burn.
READ MORE: WHY DID COMCAST SPIN OFF ITS CABLE CHANNELS?
Nonetheless, these spinoff companies do appear to be cable’s best chance as these smaller companies will have the freedom to take more risks and possibly even merge with other spinoffs, creating a more sustainable cable environment.
These cable networks, however, will face a tougher environment than ever as 2025 will be the first year that every major event will be available to stream in some capacity. In the past, cable has had exclusive offerings through major sporting events or award shows. This year, however, that will no longer be the case — with the Super Bowl, for example, being available to stream for free on Tubi and the Oscars being co-streamed on Hulu.
With nothing unique to add, cable will have to find a new way to attract viewers if it is to continue to operate in the long run. One of the advantages these spinoff companies will have, however, is an easier ability to license content to streamers other than those owned by their parent company. This may provide them with a income stream needed to survive.
It currently seems like cable is destined to die, but nothing is certain. Perhaps the freedom allowed by these spinoff companies, along with the knowledge that death is incoming, will give cable the fire it needs to turn things around.
READ MORE: IS THE END OF CABLE FINALLY HERE?
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