Cord cutting has been hitting cable TV hard this year as Paramount and Warner Bros. Discovery report having to write down almost $15 billion in value on their cable TV networks.
In a sobering second-quarter earnings report released yesterday, Warner Bros. Discovery (WBD) disclosed a massive $9.1 billion write down attributed to its television networks. This write-down means these cable TV networks have decreased over $9 billion in value.
The news shocked some in the media industry, highlighting the ongoing challenges faced by traditional television networks in the face of evolving viewer habits and the growing dominance of streaming platforms. WBD’s portfolio includes major networks, such as CNN, TNT, and TBS, all of which have experienced declining viewership in recent years.
Paramount said their cable TV networks, including Nickelodeon, MTV, and Comedy Central, have lost $5.98 billion in value.
This comes a Paramount saw overall revenue at these networks drop 11%. These losses were somewhat set off by a 16% rise in Paramount’s streaming services.
Viewership on cable TV networks has continued to fall driving down the value of cable TV networks. This drop in viewership is reducing the value of the networks, according to these two brands, by almost $15 billion.