Bloomberg just reported that they saw a shift in customer preferences in terms of entertainment as more viewers turn their subscription to streaming services from cable TV networks now. The existential crisis incable TV industry pushed Comcast (NASDAQ:CMCSA) to spin off its traditional cable networks to focus more to other cash cow businesses under its management.
Adapting to the shifting viewers preferences, Warner Bros. Discovery (NASDAQ:WBD) announced to spinning off its linear networks from its streaming assets that include studios. Preparing for the separate-planned unit, Warners said on Thursday that they are reorganizing their people specially placed in the linear TV division so that the people in streaming and studios division can focus to their own programs apart from TV programs.
It is said that they bolster strategic flexibility and create potential opportunities to unlock additional shareholder value. After the new corporate reorganization conducted, they expect to complete the unit separation by mid-2025.
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This article first appeared on GuruFocus.