WBD Restructure Separates Streaming and Cable Channels

Warner Bros. Discovery (WBD) is shaking things up by splitting its streaming and cable TV businesses into two separate divisions. This move sets the stage for a possible sale or spin-off of the company’s cable empire.

Here’s the breakdown:
– A new ‘Streaming & Studios’ unit will be in charge of managing WBD’s film and TV production, as well as overseeing services like Max and Discovery+.
– The ‘Global Linear Networks’ division will handle channels such as TNT, CNN, and Discovery.

Why the split? Well, the landscape of cable television has changed. As more people move to streaming services, traditional cable TV is becoming less profitable. WBD has also faced challenges with declining carriage fees and lost NBA rights, impacting its ability to demand fees from cable distributors and leading to a devaluation of its cable assets.

But, there’s still hope! With over 65 million cable subscribers in the US, there’s potential for someone to breathe new life into linear networks. By separating these channels into a different entity, it could make them more attractive for sale to companies like Comcast or Paramount Global.

On the flip side, this restructure will allow WBD’s content business to better serve broadcasters and compete with streaming giants like Netflix and Amazon Prime.

According to WBD’s chief executive, David Zaslav, this new structure will position the organization for future growth and strategic opportunities in the ever-evolving media world.

Exciting news for Xfinity customers in the US and Sky subscribers in the UK – they’ll soon have access to the ad-supported version of Max thanks to a new deal between WBD and Comcast.

The media industry is changing, and Warner Bros. Discovery is adapting to stay ahead of the game. Stay tuned for more updates on this evolving story!