This might not be a big deal to the younger generations. However, for the Baby Boomers and GenX, this is potentially a big shift.
Like most things relating to technology, there is disruption to the point where what we know goes away. When it comes to entertainment, specifically broadcast, it seems the death of cable television is upon us.
The cable and satellite package was one of the most powerful we have seen. Starting in the 1980s, the media companies placed themselves in a very powerful position. This set off a multi-decade run where their success was unrivaled.
But the early 2010s, people started to move away. The Internet presented options, many of what led to cord cutting. Here is where people dumped their cable packages and went strictly with an Internet connection.
This has continued. It also have affected those who are still operating in that business.
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Cartoon Network and MTV To Close?
These two channels are well know to the generations mentioned. MTV and cable television will be forever linked. The music channel was the rage for many of GenX, creating a sensation.
Recently, both the parent companies of these networks shut down the websites. There is a chance the networks will either be sold or could, possible, just be shut down.
The problem is the parents, time Warner and Paramount are bleeding. Paramount was just sold to Skydance, which is cutting costs. The former just wrote down $9 billion as the value of these television networks plummeted. Right now, they are basically worthless.
This is no surprise since it was mentioned by one of the top executives almost two years ago:
Sitting on stage at The Beverly Hilton’s International Ballroom, Iger told his interviewer, Kara Swisher, that “Linear TV and satellite is marching towards a great precipice, and it will be pushed off … I can’t tell you when, but it goes away.”
When the CEO of Disney says that, it is best to listen.
A couple years later, it seems his forecast is coming to life. The cliff is now here and many in the business are going over the edge.
Cable television is rapidly dying. When companies start writing down the assets, you know they are dealing with things viewed as worthless.
This is why channels such as the Cartoon network and MTV might just be shut down.
Massive Carnage
Something that was mentioned in the past as a potential decline is coming sooner than people thought. This is leaving many in the industry unprepared.
The decline has been driven by cord-cutting, of course, but in recent quarters the cable business has faced a double whammy: Not only are subscribers declining faster than carriage fees are rising, but advertising dollars are fleeing TV, as the proliferation of ad-supported streaming options provide new places for marketers to spend their budgets.
Do not believe that channels cannot be shut down. These corporations are in survival mode.
Just this week, it was announced by the aforementioned Paramount that it was closing their television division. Everyone was let go this week.
Paramount Television Studios, a production facility originally aimed at getting Paramount Pictures back into the business of making TV series, will shut down, the latest bout of cost cutting by parent corporation Paramount Global as it seeks to eliminate $500 million amid a chaotic shift in the entertainment industry.
Consider how bad things have to be for the closure to take place immediately. Granted, the company does have other television properties but the reports are all are going. Those assets do not carry great value although they are a bit better than this one.
The fallout will continue as the choices people have keep expanding.
The Fragmentation of Media
We are dealing with a complete shift in the industry.
Many want to point to streaming, wokeness, COVID lockdowns, and poor programming. None of these are the major reason for the demise.
Fragmentation is the cause and there is no coming back.
Of course, we have seen this story before.
According to analysts, the chaos is only just beginning. Cable channels could become the new newspapers: Targets for investment funds looking to milk cash out of them for as long as possible.
For those who recall what the late 1990s/early 2000s were like for the newspaper business, we are about to witness it again.
As stated, some of these channels will be bundled to companies seeking to suck out whatever they can. They will be sold at a discount, mostly to get off the holders books. The acquiring entity will have a steal of a deal, able to pull some profits out until the end does occur. Over time, we will see more shut down.
Naturally, the acquiring entity will have other areas of profitability, not depending upon these assets.
This is the proverbial bleeding of the turnip.
Notice how many of the names in these articles also pop up regarding the demise of Hollywood. This is a story that spread both television and film.
We are watching a long standing industry change right before our eyes.