Warner Bros. Discovery is moving in the same direction as Comcast/NBC Universal. Today the media conglomerate announced restructuring that will create a global linear TV division separate from its streaming and studios division, according to The Hollywood Reporter. With that done, WBD has a clear path to potentially drop at least some of its linear TV networks and make a dent in its mountain of debt.
"Since the combination that created Warner Bros. Discovery, we have transformed our business and improved our financial position while providing world class entertainment to global audiences," WBD president and CEO David Zaslav said in a statement (via THR). "We continue to prioritize ensuring our global linear networks business is well positioned to continue to drive free cash flow, while our streaming and studios business focuses on driving growth by telling the world’s most compelling stories. Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape, help us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value."
Ah, delivering shareholder value, famously the most important aspect of any creative industry. Those of us who still love linear television may be discomfited to see the way the winds are blowing. Unfortunately, folks just aren't paying for cable anymore when there are a dozen streaming services to demand their attention (and money).
WBD's new linear networks division will include such properties as CNN, TNT, TBS, and Discovery Channel. The restructure is expected to be completed by mid-2025, and for the time being, the division will stay underneath the WBD parent company umbrella, unlike what happened at Comcast. According to Business Insider, dropping its cable channels like Comcast did "wouldn't be favorable for WBD because it needs the cash from its linear channels to pay down the heavy debt it took on to form the company." Nevertheless, the move positions WBD to make some deals with its channels, "with Paramount Global or Comcast seen as the most likely merger partners."
