The U.S. cable network industry officially entered a decline stage in 2025, marked by falling revenues, shrinking viewership, and unprecedented restructuring of assets, according to S&P Global Market Intelligence's annual Economics of Basic Cable report. This transition was highlighted by the ongoing bidding war for Warner Bros. Discovery (WBD), pitting streaming giant Netflix against Paramount Skydance.

The report from Kagan research unit indicated a structural dismantling of the cable bundle that had dominated entertainment for decades. This inflection point was not characterized by a sudden collapse, but rather a gradual erosion of the traditional cable model. The financial implications are significant, with the industry facing a tough trajectory as revenues decline and viewership migrates to streaming platforms. Specific revenue decline figures were not immediately available, but the report emphasized a consistent downward trend.

The market impact of this shift is substantial. The potential acquisition of WBD's film studio and streaming assets by Netflix, while Paramount Skydance aims to acquire the company in its entirety, would further accelerate the decline of linear cable networks. Should Netflix succeed in acquiring only specific assets, WBD's cable networks would be effectively separated, leaving them vulnerable as the industry leader cannibalizes its own linear business.

Warner Bros. Discovery, formed by the merger of WarnerMedia and Discovery, represented a significant player in both the cable and streaming markets. Paramount Skydance, a combination of Paramount Global and Skydance Media, also holds a substantial position in the media landscape. Netflix's aggressive pursuit of WBD's streaming assets underscores its commitment to dominating the streaming space, even at the expense of traditional cable.

Looking ahead, the report suggests a long, slow "bleedout" for the cable TV industry. The future will likely be defined by further consolidation, restructuring, and a continued shift towards streaming-centric business models. The outcome of the WBD bidding war will serve as a bellwether, indicating the speed and direction of this transformation.