• by Wayne Friedman , Staff Writer, May 10, 2024

With linear TV networks in a disruptive and competitive streaming world comes some hard truth for legacy-based media companies with groups of a dozen or so TV networks: Break 'em up.

Reports suggest the real approach will come, for example, if Sony Pictures Entertainment/Apollo Global Management prevails in buying up a legacy company like Paramount Global.

A New York Times story, citing sources, says this group could sell off its linear TV networks -- especially CBS -- as well as MTV. But it would keep its movie/TV studio.

Retaining studio operations was also a key piece of the puzzle in Skydance Media's effort to buy Paramount, with Skydance Media being an on-lot film/TV producer of the company's major theatrical hits.

It seems the core value of these companies is not going away entirely.

Instead to be focused around the still exploding need of streamers for fresh content.

Analysts may talk up a maturation of the streaming market -- as well as possible slowdown of overall yearly content production -- but long term there will always be a need for new programs and movies. 

And just to be clear, it is not necessarily about keeping one's own produced content for its in-house streaming operations -- which would be Paramount+ for the possible Sony/Apollo deal -- it also includes selling content to other streamers -- including the biggest of those entertainment streamers now, such as Netflix.

Many feel those studio operations left standing will evolve into being more of a program/content  “weapons” dealer of sorts -- still selling content to non-legacy own platforms: Netflix, Amazon Prime Video, Apple TV+ and others. 

A transition period, then, for Walt Disney, NBCUniversal, and Paramount Global will mean moving into a “frenemy” mode to survive -- much more than has existed in the linear TV world where one studio sells a competing company's broadcast or cable network.

Some time ago, Warner Bros. Discovery CEO David Zaslav made it a point that it would continue to sell major TV/movie content to all comers -- while continuing to look to boost the likes of its Max streamer.

And among those remaining networks -- if any? Live news and live sports content will prevail -- even as some of that content is slowly moving to streaming platforms.

And still another question: Should TV networks themselves be broken up into smaller pieces where they might just be a small branded-content ‘tile’ on someone's streaming home page? With linear TV networks in a disruptive and competitive streaming world comes some hard truth for legacy-based media companies with groups of a dozen or so TV networks: Break 'em up.

Reports suggest the real approach will come, for example, should Sony Pictures Entertainment/Apollo Global Management prevail in buying up a legacy company like Paramount Global. A New York Times story, citing sources, says this group could sell off its linear TV networks, especially CBS, as well as MTV. But it would keep its movie/TV studio.

Retaining studio operations was also a key piece of the puzzle in Skydance Media's effort to buy Paramount; Skydance Media being an on-lot film/TV producer of the company's major theatrical hits.

So it stands to be that the core value of these companies isn't going away entirely. Instead to be focused around the still exploding need of streamers for fresh content. Analysts may talk up a maturation of the streaming market -- as well as possible slowdown of overall yearly content production -- but long term there will always be a need for new programs and movies. 

And just to be clear, it is not necessarily about keeping one's own produced content for its in-house streaming operations -- in this case Paramount+ for the possible Sony/Apollo deal. It also includes selling content to other streamers -- including the biggest of those entertainment streamers now, such as Netflix.

Many feel those studio operations left standing will evolve into being more of a program/content “weapons” dealer of sorts -- still selling content to non-legacy own platforms: Netflix, Amazon Prime Video, Apple TV+ and others. 

A transition period for Walt Disney, NBCUniversal, and Paramount Global, then, will mean moving into a “frenemy” mode to survive -- much more than has existed in the linear TV world where one studio sells a competing company's broadcast or cable network.

Some time ago, David Zaslav, CEO of Warner Bros. Discovery made it a point that it would continue to sell major TV/movie content to all comers -- while continuing to look to boost the likes of its Max streamer.