The latest round of media company earnings reports confirmed once again that linear TV — cable in particular — is eroding quickly, with its decline in stark contrast with the growing streaming business.
While it’s well-known that linear TV is in decline, it remains a profitable business and accounted for a total 45% of viewership in October, just slightly below streaming’s nearly 46% share, per Nielsen. Broadcast made up 22.9% of linear TV’s total, while cable made up 22.2% for the month.
With the penetration of pay TV subscriptions poised to fall below the critical threshold of half of U.S. households by the end of this year per research firm Madison & Wall, the industry has reached an inflection point.
The bundled cable TV package model, for which consumers paid hundreds of dollars a month, had been one of the most successful businesses in media over the past half century, but cord-cutting that began 15 years ago and accelerated each year since has delivered irreversible damage.
While efforts are already underway by pay TV operators like Charter Communications, Comcast and DirecTV to reinvent the bundle and by networks to pivot towards digital, M&A drama has dominated the industry. Between the bidding war for all or parts of Warner Bros. Discovery and Versant’s pending spinoff from Comcast, what happens in the next few months could have huge ramifications for the state of cable down the line.
“No one inside Hollywood believes linear is ‘coming back’ to what it was,” Aaron Meyerson, Qualia Legacy Advisors managing director and a former TV executive, told TheWrap. “The debate now is about how to slow the decline, harvest the cash, preserve the crown-jewel brands, and decide which networks are worth carrying into a streaming-first future — and which will be quietly euthanized.”
Meyerson predicted that M&A will be the catalyst for “the biggest pruning of cable networks in TV history” and expects roughly 30 to 40 “meaningful” linear networks to remain when the dust settles, anchored by sports, news, and a handful of lifestyle, documentary and entertainment brands.
While acknowledging that consolidation would be “painful,” he believes networks with scale, strong IP and “clearly defined” brand identities will thrive in the digital space as those propped up by “artificial bundle economics” disappear.
With the prospect of big shakeups ahead, here’s a comprehensive look at the shifting cable TV landscape.
The state of cable TV
Comcast/Versant: Comcast will spin off its cable network portfolio into Versant by the end of the year.
While it’s not publicly-traded yet, Versant saw its profits fall 24% to $749 million in the first nine months of 2025, according to a new filing with the U.S. Securities and Exchange Commission. It will formally lay out its vision, strategy, business model and financial priorities during an investor day in New York City on Thursday.
Versant’s portfolio, which includes CNBC, MS Now (formerly MSNBC), Oxygen True Crime, Syfy, E!, USA Network and Golf Channel, reached as many as 65 million households as of the end of 2024. Versant’s content is also available through Xumo and ad-supported FAST channels, as well as Comcast’s Xfinity Stream and NOW TV services and Peacock.
In addition to focusing on creating content for core audiences in news, sports and entertainment, Versant said it would expand its audience through ad-supported (AVOD), paid (SVOD) and free (FAST) streaming offerings, as well as over-the-air distribution and live events. It also said it would look to “strategically grow and expand” its digital platforms business, which includes GolfNow, Fandango, Rotten Tomatoes and SportsEngine.
Notably, Comcast will hang onto Bravo, which serves as a primary programming feeder for Peacock. It has also revived the NBC Sports Network, which is available on Xfinity and YouTube TV, offers genre-based 24/7 channels such as NBC News Now and has streamed live events such as the 2024 Paris Olympics and Election Night coverage through Peacock.
Warner Bros. Discovery: Perhaps illustrating why it’s in play — and why Netflix and Comcast are only interested in the streaming and studio businesses — it reported linear profits fell 20% to $1.7 billion in the third quarter.
Amid the bidding war, it’s been on track to split into Warner Bros., the streaming and studio assets, and Discovery Global, which would house those eroding cable channels, in April.
Ahead of the split, WBD has attempted to bring CNN into the digital age for a third time with a new streaming product, following the short-lived CNN+ and CNN Max offerings. In addition to their inclusion on-demand in Discovery+ and HBO Max, the latter offers 24/7 live HBO channels. It also plans to launch a standalone streaming app for TNT Sports and makes its programming available through free, ad-supported FAST channels on platforms like The Roku Channel and Tubi.
Paramount: The company, now under CEO David Ellison, said its TV/media segment profits fell to $822 million in its third quarter, down from $936 million a year ago.
The new leadership has said its cable brands would focus on a “more curated” slate, leaning into franchises like “SpongeBob,” “Paw Patrol,” “RuPaul’s Drag Race,” “South Park,” and “The Daily Show,” while continuing to develop new IP.
President Jeff Shell has said that broadcast’s declines are “very modest” compared to cable, adding their differences are “pretty stark and growing more stark.” But rather than spin off its cable assets, he said the media giant would look to “transform those businesses in a digital way to drive value long term,” though he did not specify how.
In addition to offering its cable content through Paramount+, BET+ and Pluto TV, Paramount has also launched FAST channels through platforms such as The Roku Channel and Prime Video’s channels store, as well as on Plex and Samsung, LG, and Vizio smart TVs. Under the previous regime, Paramount also experimented with a series developed specifically for YouTube: Nickelodeon’s “Kid Cowboy,” which made its debut back in January.
Disney: The media giant, whose networks reached as many as 61 million subscribers as of September, saw a 21% decline in linear profits on the entertainment side to $391 million and a 22% decline in ESPN profits to $896 million in its fourth quarter. Disney did not provide a breakdown for the latter, which includes results from both linear TV and its streaming business.
In addition to cross-promoting its content on its linear networks and streaming services, the media giant has launched several digital offerings including ABC News Live, ESPN Unlimited and Disney+’s lineup of 24/7 themed channels, known as Streams. It also has previously simulcast live shows like “Dancing With the Stars.”
The sports network’s content is also available through its ESPN+ streaming service, a Disney+ tile and in bundle offerings with Disney+ and Hulu, Fox One and NFL+. Executives noted that 80% of ESPN Unlimited sign-ups came through Disney’s trio bundle.
Fox: The Murdoch-controlled media giant, whose cable networks reached as many as 61 million households as of the end of June, saw cable segment profits grow to $3.03 billion in fiscal 2025 and $800 million for its fiscal first quarter of 2026 (which falls in the calendar third quarter).
It joined the streaming wars with the launch of Fox Nation in 2018, which reported between 2 and 2.5 million subscribers as of March, and Fox One, which launched in August. Fox’s content is also available through bundles with ESPN Unlimited and B1G+, as well as through the FAST service Tubi, which it acquired in 2020. Tubi has grown to over 100 million monthly active users, reached profitability and accounted for 2.2% of the streaming category’s TV watch time in October. Content from Fox affiliate stations is also available through its LiveNow and Fox Local platforms.
AMC Networks: The Kristin Dolan-led media company grew its overall profit in its third quarter of 2025, though its revenue continued to be weighed down by linear’s decline, offset by growth in streaming. The company also shed less than 5% of its total workforce through a voluntary buyout program for U.S. employees to ensure it had the “right skills for the future.”
AMC Networks uses its streaming services AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE and the new All Reality to promote its content from its linear networks BBC America, IFC, Sundance TV, and We TV. Over 850,000 Charter video customers have accessed AMC+ since its inclusion in their video packages last spring. It also has more than 33 FAST channels across 22 platforms with over 250 global feeds.
Starz: The Jeff Hirsch-led media company posted a widened loss of $52.6 million in its latest quarter driven by linear cord-cutting, but has converted 70% of its revenue to digital and has seen cable’s declines offset by streaming.
It has expressed interest in working with networks “marooned on the linear side” that fit into its core demographics of women and under-represented audiences. The cable network’s content is also available on the Starz app, as well as through third-party FAST platforms like The Roku Channel and in bundles with HBO Max BET+, AMC+ and MGM+.
Additionally, Starz will license its content to Canada’s Bell Media, a switch from the two companies’ previous joint venture model.
Capitalizing on M&A
In addition to doubling down on their digital presence, both the larger and smaller media companies aren’t ruling out M&A.
Versant has said it would pursue “opportunistic and disciplined acquisitions” and other investments that align with its core strategy, improve its competitive positioning, enhance its portfolio with complementary brands and deliver attractive returns for its shareholders. TheWrap previously reported that Versant is also exploring a potential sale of SportsEngine, a software platform for youth sports.
Beyond the Versant spin, Comcast has said it has a “very high” bar for M&A and that its strategies are “really sound and durable” without it. But the company has said it would look at opportunities to see if they add value and has submitted a first round bid for Warner Bros. studios and streaming business.
Paramount has submitted four bids for all of WBD since closing their $8 billion merger in August. When asked about M&A, Ellison has said there are no “must-haves,” but that the company would be “opportunistic” if a deal helps it achieve its goals. While a Warner Bros. Discovery acquisition would add much-needed scale, Paramount is also divesting non-core assets, such as Argentina’s Telefe and Chile’s Chilevision cable networks, as it targets $3 billion in cost savings.
In addition to pursuing the split and evaluating separate transactions, WBD’s board will consider an alternative separation structure that would enable a merger of Warner Bros. and the spinoff of Discovery Global to its shareholders. Gunnar Wiedenfels, who will lead Discovery Global as CEO, has previously said it would be “free and clear” to pursue M&A following the separation and that it has already received interest in its 10% stake in Warner Bros., which can be sold prior or after the separation.
Though Versant and Discovery Global have previously been floated as potential roll-up vehicles for cable networks, it’s unclear whether either would want to take on more linear exposure. Comcast and WBD have previously shown a willingness to shut down underperforming cable networks, such as Universal Kids, HBO Family, ThrillerMax, MovieMax and OuterMax, and divert resources elsewhere.
Starz, which has said its “uniquely positioned” to capitalize on M&A opportunities, recently expressed interest in acquiring Lifetime and History Channel parent A&E Global Media, which was put up for sale by Disney and Hearst in July, though talks between the two companies have not progressed very far.
Fox has also said M&A would be an “important part” of its growth going forward and that it would remain “very disciplined.” In addition to Tubi, Fox has also dipped its toe in podcasting with the acquisition of Red Seat Ventures in February. CEO Lachlan Murdoch clarified in October that Fox would not acquire assets that have “high exposure” to the cable industry.
Though Disney has become synonymous with major acquisitions such as Lucasfilm, Pixar, Marvel and 21st Century Fox in recent years, its executives have said they’re sitting on the sidelines for now, arguing there isn’t a need for more “major M&A.”
CEO Bob Iger previously floated the idea of spinning off the company’s linear networks, though he later reversed course after deciding keeping everything together would give the company a “stronger hand.”
Networks best positioned for the future
While there are many players looking to survive, veteran TV producer Evan Shapiro told TheWrap there are “very few” cable networks that have the brand, scale and audience loyalty to make it in this new, far more competitive environment.
S&P Global analyst Scott Robson told TheWrap that news and sports networks are best positioned going forward, while warning that children’s networks and music video networks could struggle to get license fee increases in the future. EMarketer senior analyst Ross Benes agreed that non-sports cable brands would be the most at risk, adding: “It isn’t looking good for most of them.”
Those whom Shapiro expects will successfully make the digital pivot include HGTV, Hallmark, Fox News, MS Now, HBO, CNN and ESPN, while Meyerson added FX, NatGeo, Bravo, Discovery, Food Network, Nickelodeon and Paramount Network to that list.
“They have every right to win along with NBC, CBS, ABC, FOX, CW and some local affiliate aggregators. But they all need to make the transition to content-first, not platform. If they don’t, they lose that right,” Shapiro added. “Anyone else is likely to get swept up into some combination of consumption, consolidation or elimination.”
