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Warner Bros. Spinning Off Cable Amidst Streaming Sale
20 Jan
Summary
- Cable network revenue to fall by $1.3 billion by 2030.
- Netflix is acquiring streaming and studio assets.
- CNN revenue projected to grow to $2.2 billion by 2030.
Warner Bros. Discovery Inc. anticipates a significant downturn for its cable networks, projecting a revenue decrease to $15.6 billion by 2030, down from $16.9 billion this year. These cable assets, including CNN and TNT, are slated for a spin-off prior to the sale of the company's streaming and studios division to Netflix Inc.
In contrast to the cable division's projected decline, Warner Bros. foresees substantial growth in its streaming and studios units. Revenue in these sectors is expected to climb to $34.1 billion by 2030, an increase from $24.3 billion currently. This optimistic outlook for streaming is a key factor in the company's strategic decision-making regarding the sale.
CNN specifically is expected to experience revenue growth, reaching $2.2 billion by 2030, supported by initiatives like CNN All Access. While cable networks face subscriber losses and a shift to streaming, Warner Bros. argues that the potential upside from the eventual cable asset spin-off makes the Netflix deal more advantageous.
