Warner Bros to split cable and streaming businesses in major restructuring

In response to the ongoing decline of cable television and the increasing trend of cord-cutting, Warner Bros. Discovery (WBD) is making a significant shift in its business strategy. The company has announced a plan to divide its streaming and cable operations into two distinct publicly traded entities, aiming to enhance the performance and focus of each sector. This strategic overhaul will create a new division called Streaming & Studios, which will encompass Warner Bros. Television, Motion Picture Group, DC Studios, HBO, and HBO Max. Meanwhile, the Global Networks division will include major brands such as CNN, TNT Sports in the U.S., Discovery, and Bleacher Report. Notably, the popular Discovery+ platform will not be part of the Streaming segment, suggesting that WBD may not see it as a priority compared to HBO Max. Recently, HBO Max has reverted to its original branding, signaling a renewed commitment to delivering premium content. This move contrasts with the performance of Discovery titles, which have struggled, resulting in multiple removals from the platform. WBD’s decision mirrors a wider trend in the media industry, echoing moves made by other companies like Comcast, which spun off NBCUniversal’s cable channels last year.