What will become of cable television? The winds are shifting in Hollywood and media conglomerates are making moves, siloing off or even dropping their cable networks altogether in favor of streaming. Warner Bros. Discovery and Comcast/NBCUniversal have already set such plans in motion, and you can expect that when the Skydance and Paramount merger solidifies that it, too, will likely spin off or sell its cable channels, according to a new piece from The Hollywood Reporter.
THR reports that MTV, Comedy Central, Nickelodeon, and BET are "simply not as high a priority" to the incoming Skydance regime as the flagship TV network CBS. The soon-to-be company president Jeff Shell previously described CBS as a "crown jewel" and THR claims CBS is the only TV asset completely safe from the chopping block. But it won't be a surprise to those paying attention that Paramount is ambivalent about the rest of its portfolio. The company has entertained numerous bids to buy BET, including from Tyler Perry and media mogul Byron Allen. And the deprioritization of those other networks was evident when the digital archives of networks like MTV News, Comedy Central, and more were wiped from the web.
Will these legacy networks survive on their own, or is this a true death knell for a form of entertainment on the brink of extinction? Only time will tell, but it's clear which way those winds are blowing. THR cites a December 19 Bank of America research report from Jessica Reif Ehrlich which predicts: “In addition to WBD, we anticipate other media companies will consider parting with some of their cable TV network assets now which could drive an effective industry roll up vehicle. These assets should be better positioned as a consolidated, linear-focused vehicle with scale benefits that can drive affiliate and advertising negotiation as well as synergies.” Who can argue with synergies?
