For years, cable channels have used steadily rising carriage fees and advertising growth to offset decline. Now times may be changing “as cord-cutting headwinds intensify.”
The past five years saw every major Hollywood giant lean into streaming entertainment, pulling programming budgets from broadcast and cable channels and funneling them into wholly owned streaming services. But there also have been exceptions: sports and news, which TV executives have long argued hold the legacy pay TV bundle together. Warner Bros.
So while such cable channels as TNT, Syfy and Comedy Central have dialed down their original entertainment output and reduced budgets for everything from staffing to marketing, with efforts focused on streaming, channels like ESPN and Fox News have stayed the course, benefiting from their ability to generate strong cash flows from their linear businesses .
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