The Entertainment Landscape Is Quickly Changing

Media giants like Comcast and Warner Bros. Discovery are offloading cable TV channels, while station operators like Allen Media and Apollo Global Management explore selling dozens of local stations. Cox and Charter, major cable and broadband providers, have agreed to merge.

On Monday, Warner announced it will split into two publicly traded entities: one housing its movie and TV studios and HBO Max, and another comprising cable channels like CNN, TNT, and Food Network.

Industry veteran Jon Miller, CEO of Integrated Media Co., noted that companies are working to “get their houses in order.”

According to The Wall Street Journal, the year could see further transformation if station groups like Nexstar Media Group, Sinclair Broadcast Group, or Gray Media—or even private-equity firms—capitalize on opportunities to acquire local TV stations and cable networks.

Nexstar CEO Perry Sook said last month, “We are prepared to capitalize on deregulation through M&A.” Sinclair executives echoed optimism about future dealmaking.

Gray’s EVP Kevin Latek added, “Everybody is talking to everybody. There’s a lot of three-dimensional chess being played.”

If Skydance’s merger with Paramount Global closes, it may seek to acquire more local TV stations to strengthen its CBS network, according to a source familiar with the matter.

Once highly coveted for their substantial profits, cable networks are now seen as outdated relics of a past media era. The primary driver is shifting consumer behavior.

Nielsen reports that cable penetration in U.S. TV households has fallen from 86% to 51% over the past decade. This decline, fueled by the rise of streaming, has caused ratings to plummet at once-dominant cable networks.