0:00
If you're tired of juggling streaming services and rising subscription costs, get ready
0:05
A big shakeup at CNN's parent company could make things even more complicated and expensive
0:13
Warner Brothers Discovery, the parent company of CNN, HBO, TLC and HGTV
0:20
is reportedly planning to spin off its cable networks into a separate company
0:25
The move is aimed at keeping up with the industry-wide pivot away from traditional cable and towards streaming
0:32
It's a play that mirrors Comcast's recent decision to break off its slower-growing cable channels like MSNBC and CNBC
0:40
And Wall Street seems to like it. Warner Bros. Discovery stock jumped nearly 5% after the report
0:46
That came just after the company posted weak earnings, including a major drop in cable ad dollars
0:52
Investors are betting that dumping cable could help boost future profits. This all traces back to the $43 billion merger in 2022 between WarnerMedia and Discovery
1:03
The idea was to build a streaming giant by combining big names like HBO CNN and TLC But here the reality Millions of Americans are cutting the cord and now companies like Warner Brothers Discovery are scrambling to make streaming
1:17
their future and make it profitable. If the plan moves forward, Warner Brothers Discovery would
1:23
become two separate companies, one for its cable brands like TBS, Food Network and HGTV
1:28
and another focused on streaming and studios. Media companies are rethinking how they're built
1:34
in order to stay competitive. Warner reportedly had talks with Paramount too, but Paramount took
1:40
another route, seeking to strike a deal with Skydance. Some ysts say splitting off the
1:45
cable business could give those channels more freedom to license shows to different streaming
1:50
platforms, which could be good for viewers. But others are skeptical, saying moves like this are
1:55
more about cleaning up company finances than helping audiences. And not everyone is thrilled
2:01
High schooler Gavin Herman summed it up in his school paper, the future of television is undoubtedly grim
2:08
Prices will continue to rise and shows will continue to scatter across platforms
2:14
With Straight Arrow News, I'm Kennedy Felton. Download our app or visit san.com for more
