Netflix-Paramount Deal Signals 2025 TV Shift – S&P Declines Cable
- This report from a research unit (likely S&P Global) paints a bleak picture of the U.S.cable network industry, definitively stating it has entered its "decline stage." Here's a...
- * Formal Decline: The cable industry is no longer just facing challenges; it's in a recognized decline characterized by falling revenues,shrinking viewership,and restructuring.
- * Advertising Revenue: Fell 5.9% to $20.2 billion (lowest since 2007).
Summary of the Cable Industry Decline – Based on S&P Report (as of late 2025/early 2026)
This report from a research unit (likely S&P Global) paints a bleak picture of the U.S.cable network industry, definitively stating it has entered its “decline stage.” Here’s a breakdown of the key findings:
Key Takeaways:
* Formal Decline: The cable industry is no longer just facing challenges; it’s in a recognized decline characterized by falling revenues,shrinking viewership,and restructuring.
* WBD Bidding War as a Symbol: The battle for Warner Bros. Discovery (WBD) between Netflix and Paramount Skydance exemplifies the industry’s shift. Netflix’s interest in only WBD’s film studio and streaming assets signals a willingness to leave cable networks behind. A Netflix win would likely result in WBD’s cable assets being “stranded.”
* Structural Dismantling of the Cable Bundle: The decline isn’t a sudden crash, but a gradual dismantling of the traditional cable package.
* Shift to Streaming & FAST: Companies are actively abandoning cable in favor of streaming services. The rise of Free Ad-Supported Television (FAST) provides an option monetization path for content libraries.
* No Comeback: After peaking in 2012, linear TV subscriptions have been consistently falling, and there’s no expectation of a reversal.
Financial Data (2024):
* Advertising Revenue: Fell 5.9% to $20.2 billion (lowest since 2007).
* Affiliate Fees: Decreased nearly 3% to $38.7 billion.
* Subscribers: average cable network lost 7.1% of subscribers, down to 31.4 million homes.
Industry Movements & Future Outlook:
* Comcast spinoff: Comcast is spinning off its cable networks (excluding Bravo) into a standalone entity called “Versant” in January 2026.
* New Streaming Platforms: Launches of ESPN Unlimited and FOX One in august 2025 accelerated the shift to streaming.
* Slow Decline, Not Collapse: The report predicts a “long, slow bleedout” rather than a dramatic collapse. Interestingly, the rate of decline slowed in 2025, with a slight subscriber growth in Q3.
* Live Sports as a Lifeline: operators are focusing on live sports as the last remaining reliable draw for viewers. the 2026 Winter [Games] are highlighted as a significant event.
In essence, the report confirms the cord-cutting trend is irreversible and that the future of entertainment lies in streaming, leaving traditional cable networks to navigate a long and challenging decline.