{"id":1586,"date":"2023-09-20T11:51:43","date_gmt":"2023-09-20T11:51:43","guid":{"rendered":"https:\/\/demo3.aiwalls.com\/thesemovies\/2023\/09\/20\/which-tv-channels-will-be-dropped-next-the-hollywood-reporter\/"},"modified":"2023-09-20T11:51:43","modified_gmt":"2023-09-20T11:51:43","slug":"which-tv-channels-will-be-dropped-next-the-hollywood-reporter","status":"publish","type":"post","link":"https:\/\/demo3.aiwalls.com\/thesemovies\/?p=1586","title":{"rendered":"Which TV Channels Will Be Dropped Next? \u2013 The Hollywood Reporter"},"content":{"rendered":"

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\n\tWalt Disney\u2019s new carriage agreement with cable giant Charter Communications is widely seen as a game-changer for the pay TV and streaming sectors, creating a new blueprint for how such deals are structured. Analysts and industry sources point to two key pieces of the deal that will likely be felt: ad-supported streaming in the bundle, and a \u201cresizing\u201d of the linear TV business. It\u2019s a deal that NBCUniversal (which owns Peacock), Paramount (which owns Paramount+) and Warner Bros. Discovery (which owns Max) are surely looking at closely given it is widely expected to impact their future carriage deals.<\/p>\n

\n\tMark Lazarus, the chairman of NBCUniversal Media group, acknowledged as much at the IMG Summit outside London on Sept.\u00a014. In an interview with Endeavor president and COO Mark Shapiro, Lazarus noted that his company shuttered some channels over the past few years (Cloo and Esquire Network in 2017, NBCSN in 2021), and that the new deal could lead to changes. \u201cWe have spent time over the last few years culling the\u00a0herd a bit \u2014 we\u2019ve closed or merged a series of networks,\u201d Lazarus told Shapiro, noting that NBCSN\u2019s sports went to USA Network and Peacock. \u201cWe will continue to evaluate our\u00a0portfolio. Some of what just happened with Disney and Charter in terms of some networks being prioritized and some de-prioritized, I think the whole industry has to continue to do that and we will continue to do that as\u00a0well.\u201d<\/p>\n

\n\tIt\u2019s a recognition that this deal could mean a new paradigm for what will work as a cable channel. \u201cWhile Charter and Disney are friends again, the industry feels different,\u201d Wells Fargo analyst Steven Cahall argued in a Sept.\u00a013 report. \u201cCharter looks to have secured a lower total programming expense (illustratively around $350\u00a0million) while Disney has picked up direct-to-consumer distribution (illustratively about $500\u00a0million in Disney+ revenues).\u201d But he expects the marginalization of smaller channels to become \u201ca growing theme\u201d across the industry.<\/p>\n

\n\tOther Wall Street experts echoed the notion that the distributor\u2019s decision not to carry eight smaller TV networks anymore, among them Freeform, Disney Junior, FXM, FXX and Nat Geo Wild, will likely be replicated in other carriage pacts because this seems to suit the age of streaming and cord-cutting. In what could be considered a sign of where Freeform ranks within Disney\u2019s internal priorities, the network now no longer has one executive whose job is to focus entirely on the network. It remains profitable \u2014 the themed programming blocks remain a favorite for Freeform\u2019s ad sales team \u2014 as Disney insiders are said not to be worried about losing Charter\u2019s 15\u00a0million homes (it is still in tens of millions of homes, and its content remains on Hulu).<\/p>\n

\n\tAn industry source said that they believed the first channels to go would likely be \u201csecondary\u201d or \u201ctertiary\u201d channels, anchored to a core offering. Consider Disney Junior and Disney XD, which were offshoots of Disney Channel, or FXX and FXM, offshoots of FX. That could put channels like Paramount\u2019s MTV2 or WBD\u2019s Destination America at risk. But Freeform, with its long history and sizable distribution, suggests that some major channels could also be ripe for a culling, and that distributors will demand value from their programming partners. \u201cCharter is dropping long-tail cable networks while still preserving the most popular linear programming and getting access to more attractive (streaming) content,\u201d explained UBS analyst John Hodulik.<\/p>\n

\n\tWith Disney and Charter staying mum on financial details of their deal, as is common practice, analysts have taken a stab at assessing the financial impact of the dropped networks. Based on data from S&P Global Market Intelligence\u2019s Kagan, Guggenheim analyst Michael Morris estimates that the eight networks combined represent around 11\u00a0percent of Disney\u2019s affiliate revenue per subscriber. His conclusion: \u201cWe expect that Disney will reevaluate these networks and the amount spent to operate them as other distribution agreements come up.\u201d<\/p>\n

\n\tCould the likes of Paramount Global\u2019s Logo, Warner Bros. Discovery\u2019s Cooking Channel and NBCUniversal\u2019s Oxygen follow? Cahall expects drops for channels that \u201cgenerate low affiliate fees\/viewership and where the content is available on streaming,\u201d the expert wrote.<\/p>\n

\n\tFor Disney, he sees a $1.1\u00a0billion potential impact on operating income before depreciation and amortization (OIBDA), or 19\u00a0percent of his estimated fiscal year 2024 linear networks unit OIBDA and 6\u00a0percent of his total Disney OIBDA estimate. Cahall concludes: \u201cParamount is the worst positioned in a future skinny bundle era\u201d and Warner Bros. Discovery has \u201csizable exposure,\u201d while Comcast\/NBCUniversal and Fox Corp. are \u201cleast at risk.\u201d<\/p>\n

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\t\t\t\t\t\t\t\t\tSource: Wells Fargo estimates and analysis. *Operating income before depreciation and amortization (OIBDA)<\/cite><\/p>\n<\/figcaption><\/figure>\n<\/div>\n

\n\tLesley Goldberg contributed to this report.\u00a0<\/em><\/p>\n

\n\tThis story first appeared in the Sept. 20 issue of The Hollywood Reporter magazine.\u00a0Click here to subscribe<\/em>.\u00a0<\/p>\n<\/p><\/div>\n

#Channels #Dropped #Hollywood #Reporter<\/p>\n","protected":false},"excerpt":{"rendered":"

Walt Disney\u2019s new carriage agreement with cable giant Charter Communications is widely seen as a<\/p>\n","protected":false},"author":1,"featured_media":1587,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[2484,2485,1821,1822],"class_list":["post-1586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-movie-news","tag-channels","tag-dropped","tag-hollywood","tag-reporter"],"featured_image_urls":{"full":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main.jpg",1024,576,false],"thumbnail":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main-150x150.jpg",150,150,true],"medium":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main-300x169.jpg",300,169,true],"medium_large":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main-768x432.jpg",640,360,true],"large":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main.jpg",640,360,false],"1536x1536":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main.jpg",1024,576,false],"2048x2048":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main.jpg",1024,576,false],"chromenews-featured":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main.jpg",1024,576,false],"chromenews-large":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main-825x575.jpg",825,575,true],"chromenews-medium":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main-590x410.jpg",590,410,true],"arpw-thumbnail":["https:\/\/demo3.aiwalls.com\/thesemovies\/wp-content\/uploads\/2023\/09\/27rep_wildwestoftv-main-50x50.jpg",50,50,true]},"author_info":{"display_name":"admin","author_link":"https:\/\/demo3.aiwalls.com\/thesemovies\/?author=1"},"category_info":"Movie News<\/a>","tag_info":"Movie News","comment_count":"0","_links":{"self":[{"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=\/wp\/v2\/posts\/1586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1586"}],"version-history":[{"count":0,"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=\/wp\/v2\/posts\/1586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=\/wp\/v2\/media\/1587"}],"wp:attachment":[{"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demo3.aiwalls.com\/thesemovies\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}