Warner Bros. Discovery (WBD) has announced a major restructuring of its business, dividing its operations into two distinct units: one focused on linear television networks and the other encompassing streaming and studio operations. This strategic move, expected to be finalized by mid-2025, signals a potential shift away from traditional television and a greater emphasis on streaming platforms like Max.
The reorganization aims to “pursue further value creation,” according to the company, and raises speculation that WBD may eventually spin off its linear business entirely. This move follows months of rumors suggesting the company was considering separating its streaming assets from its legacy networks to alleviate its substantial debt burden.
WBD’s linear networks have faced significant challenges, exemplified by a $9.1 billion writedown taken in August. This financial hit followed the loss of live NBA games from TNT to Amazon Prime Video, highlighting the increasing competition from streaming services for valuable sports content.
WBD is not alone in reassessing its approach to linear television. Last month, Comcast announced a similar plan to spin off its cable TV channels into a separate entity. Furthermore, Disney CEO Bob Iger has previously indicated that the company’s linear networks “may not be core” to its long-term strategy. These developments underscore a broader trend within the media industry, as companies grapple with declining viewership and the rise of streaming.
WBD will immediately begin implementing the “foundational steps” of the new structure. CEO David Zaslav stated that this reorganization will create “potential future strategic opportunities across an evolving media landscape.” This suggests that the company is preparing for a future where streaming plays an even more dominant role, potentially at the expense of traditional television. The split allows WBD to manage the declining linear business while focusing growth efforts and investment into streaming.
This restructuring marks a significant turning point for Warner Bros. Discovery and reflects the ongoing transformation of the media industry. The potential separation of its linear business would represent a major departure from traditional broadcasting and a decisive embrace of the streaming era.