If you thought linear TV was hanging on for dear life, you’re not alone. A recent S&P Global Ratings report paints a grim picture for cable networks, suggesting that the slow-motion collapse of traditional television is well underway. But for cord cutters, this isn’t bad news, but a validation of their habits. Let’s break down what’s happening and what it means for the future of how we watch TV.
Cable’s Slow Decline: No Cliff, Just a Steady Fade
According to S&P Global Ratings, the downfall of linear TV isn’t an overnight implosion but a long, drawn-out process. They estimate that by 2026, the pace of cord-cutting will slow slightly to 5.8% annually, down from 6.7% in 2024. That might seem small, but compounding those numbers over time spells doom for the traditional TV model.
“We believe that linear TV’s decline in the U.S. is irreversible, but that there is no immediate cliff. We expect the decline will be a steady one that will take years to reach its final conclusion,” from the S&P Global Ratings report.
Not only are subscribers fleeing, but advertisers are, too. Ratings for general entertainment networks are in freefall, with double-digit audience declines. Even sports, which have traditionally been a lifeline for linear TV, aren’t immune. The NFL, one of the most bankable properties in media, saw a 2.2% drop in viewership for the 2024 regular season. More sports are embracing streaming to attract viewers.
The Great Spin-Off Experiment: Desperation or Strategy?
Legacy media companies are scrambling to adapt. Comcast and Warner Bros. Discovery are leading the charge by spinning off their linear TV assets into separate companies. The idea is to offload declining businesses while focusing on the future of streaming and content creation for Peacock and Max, their respective platforms.
But there’s a catch. These newly spun-off networks won’t own much (if any) of their content. They’ll be middlemen, licensing shows from other companies while trying to survive in a shrinking ecosystem. That’s like running a Blockbuster in the age of Netflix, it might work for a while, but the writing’s on the wall.
Can Cable Networks Actually Survive Alone?
The reality is harsh. Stand-alone cable networks don’t have a great track record. S&P Global Ratings highlights AMC Networks as a cautionary tale: once a powerhouse with hit shows like Breaking Bad, AMC has struggled due to its reliance on general entertainment programming, a genre losing ground to streaming at an alarming rate.
Thanks to its ownership of major sports rights and news networks like Fox News, Fox Corporation is the exception. It has managed to keep revenue stable, but if they don’t find a way to integrate streaming into their sports business, they could face the same decline as their competitors. For the upcoming matchup between the Eagles and Chiefs, the Fox-owned Tubi will stream Super Bowl LIX in 4K for free.
What Does This Mean for Cord Cutters?
For those who have already embraced streaming, this is just confirmation that the correct choice was made. As traditional TV continues its decline, the industry knows it’s on borrowed time. Don’t expect legacy networks to disappear overnight, but do expect them to become more aggressive in pushing their streaming services.
If you’re still holding onto cable, now might be the time to finally cut the cord and embrace the benefits it has to offer. The industry is aware that linear TV is a sinking ship as more viewers and advertisers are jumping off now instead of riding down to the bottom.
The Streaming Future is Inevitable
This shift isn’t just about convenience but it’s about survival. Networks that can pivot to streaming and original content will thrive. Those who cling to the old ways and do not shift to evolving changes in viewer habits will go the way of Blockbuster.
Viewers have many choices to stream their favorite shows without being locked into a contract or installing bulky equipment. With free-ad supported platforms like Plex, Tubi, Pluto, Sling Freestream, MyFree DIRECTV, FreeVee, or the on-demand options of Hulu, ESPN+, Prime Video, Paramount+, Apple TV+, Peacock, Starz, Disney+, and Max, consumers continue to flock to and rotate their streaming service. Even DIRECTV STREAM, Sling TV, Fubo, Hulu + Live TV, and YouTube TV carry many popular channels at a lower price than traditional TV providers.
If there was ever a time to say goodbye to cable, it’s now.