Warner Bros Discovery Faces 'Negative' Outlook Amid Cable TV Woes

S&P downgraded its outlook on Warner Bros Discovery to 'negative' from 'stable,' highlighting troubles in the company's cable TV division. This sector, contributing to half of the company's revenue, faces declining ad revenue and customer migration to streaming services, alongside potential loss of NBA broadcast rights.

S&P Global Ratings has downgraded its outlook on Warner Bros Discovery to 'negative' from 'stable.' The revision comes as the company's cable TV division battles a downturn in advertising revenue and increasing cord-cutting by consumers turning to streaming services.

The cable-TV sector, which accounts for about half of Warner Bros Discovery's revenue, is currently facing significant challenges that could escalate if the company loses the broadcast rights for National Basketball Association games.

These financial strains underline broader industry trends toward digital streaming, posing ongoing risks to traditional media giants like Warner Bros Discovery.

(With inputs from agencies.)