The U.S. cable network industry officially entered a decline stage in 2025, marked by falling revenues, shrinking viewership, and significant restructuring of assets, according to S&P Global Market Intelligence's annual Economics of Basic Cable report. This transition was highlighted by the 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. Financial details revealed a consistent downward trend in cable revenues, although specific figures were not disclosed in the provided material. The inflection point in 2025 signaled not a sudden collapse, but a long-term bleedout for the cable industry.

The market impact of this shift was substantial, as traditional cable providers faced increasing pressure from streaming services. The WBD negotiations encapsulated this dynamic, with Paramount Skydance aiming for a complete acquisition while Netflix focused on WBD's film studio and streaming assets. A successful Netflix bid would result in the separation of WBD's cable assets, leaving linear networks vulnerable.

Warner Bros. Discovery, a major player in the media landscape, became a focal point in the industry's transformation. Netflix, seeking to expand its content library and production capabilities, viewed WBD's studio and streaming assets as a strategic acquisition. Paramount Skydance, representing a more traditional approach, aimed to integrate WBD entirely, potentially preserving some aspects of the existing cable structure.

Looking ahead, the report suggested a challenging financial trajectory for the cable industry. The outcome of the WBD bidding war would likely set a precedent for future consolidation and restructuring. The long-term outlook pointed towards a continued decline for cable, with streaming services poised to further disrupt the media landscape.