Uh-Oh: Warner Bros. Discovery Considers Splitting from CNN & Other

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Warner Bros. Discovery (WBD) is exploring the possibility of separating its cable networks from its streaming and studio divisions, signaling a significant shift in the entertainment industry’s approach to traditional television assets. The company announced plans to reorganize its corporate structure, creating a global linear TV division separate from its streaming and studios division. This initiative is expected to be completed by mid-2025.

“Warners on Thursday said it was reorganizing its corporate structure into a global linear TV division, separate from from its streaming and studios division,” The Hollywood Reporter noted. “The studio said it will begin the early steps towards the new corporate reorganization immediately and expects to complete the initiative by mid-2025.”

This move follows a similar strategy by Comcast, which recently unveiled plans to spin off its cable networks. Disney CEO Bob Iger has also hinted at a comparable separation for the company’s linear TV assets. The decision reflects the changing landscape of television consumption, with traditional cable packages losing ground to streaming services. Last year, major pay-TV companies collectively lost about 5 million subscribers, with Comcast alone shedding 2 million.

Industry analysts suggest that spinning off linear TV assets could allow the core of WBD to focus on growth areas, as the cable business has become less profitable. The shift is largely attributed to changing consumer preferences, with many opting for individual streaming services over bundled cable packages. This transition marks a return to a merit-based system for content creation. Streaming services must attract subscribers with programming they want to watch, unlike the cable model where less popular networks were subsidized through carriage fees.

For consumers, the proliferation of streaming options, including free ad-supported services like Pluto, FreeVee, and Tubi, offers alternatives to traditional cable subscriptions. These platforms provide a wide range of content without the need for expensive monthly fees.

As the entertainment industry adapts to these changes, companies like WBD are reevaluating their business models to remain competitive in an increasingly streaming-dominated market. The outcome of these strategic shifts could reshape the television landscape in the coming years.

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