Media companies take $15 billion hit on cable as industry turns to 'shrinking to survive'

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Paramount Global News

Cable Businesses,Warner Bros.,Companies

It was a brutal week for linear cable networks.

On Wednesday, WBD reported a massive $9.1 billion impairment charge related to its TV networks unit following the loss of

Although profitability has improved, the pressure from deteriorating linear networks, coupled with heavy debt loads, has forced legacy media giants to cut costs.It was a brutal week for linear cable networks, as companies like Disney, Warner Bros. Discovery, and Paramount Global all saw declines in linear ad revenue.

"For Paramount and Warner, both companies have seen double-digit declines in advertising and distribution revenue for years," Third Bridge's Lumley said. "These write-downs, while significant in size, do not come as a major surprise given the pressure this industry has continued to face. ... In terms of future write-downs, it would not be surprising to see further reevaluations across the industry of the value of cable businesses.

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