Connect with us

Business

The Netflix-Paramount saga caps a 2025 turning point, S&P says: Cable TV is in the ‘decline stage,’ with a long, slow bleedout ahead

Published

on


The American media landscape has officially crossed the Rubicon, according to S&P Global Market Intelligence’s annual Economics of Basic Cable report from its Kagan research unit. It’s a grim read.

The U.S. cable network industry has formally entered the “decline stage of its life cycle,” a transition defined by falling revenues, shrinking viewership, and an unprecedented restructuring of legacy assets. While the sector faces a tough financial trajectory, the defining event is the high-stakes bidding war for Warner Bros. Discovery (WBD), where streaming giant Netflix. and traditional powerhouse Paramount Skydance present two starkly different paths for the future of cable television.

The inflection point identified in the 2025 report is not a sudden crash, but rather a structural dismantling of the cable bundle that dominated entertainment for decades. The WBD negotiations encapsulate this shift. While Paramount Skydance aims to acquire the company in its entirety, Netflix is bidding solely for WBD’s film studio and streaming assets. Should Netflix prevail, WBD’s cable assets would be split off, effectively stranding the linear networks as the industry leader cannibalizes the content engine for its digital platform.

“These decisions signify a shift in the media industry as companies abandon cable networks in favor of streaming services,” wrote S&P’s Scott Robson, who also noted that the “burgeoning free ad-supported television (FAST) industry also continues to evolve as owners of library video content increasingly look for monetization outlets outside of basic cable syndication.”

Since the “cord-cutting” movement ushered in by Netflix gathered steam, Robson noted that linear network TV has been under pressure—subscriptions peaked all the way back in 2012. Looking back at 2025 now, he concluded, there’s no comeback in sight.

Mapping out the decline ahead

This potential fracturing of WBD mirrors broader industry movements. Comcast is set to finalize the spinoff of its cable networks—excluding Bravo—into a standalone entity named “Versant” on January 2, 2026. These strategic exits signal that major media conglomerates are now willing to “abandon cable networks in favor of streaming services,” a trend accelerated by the August 2025 launches of the ESPN Unlimited and FOX One streaming platforms, according to S&P.

The financial data underpinning this migration is stark. In 2024, gross advertising revenue for cable networks fell 5.9% to $20.2 billion, the lowest level recorded since 2007. Robson’s team also estimated that affiliate fee revenue, or what TV operators pay to carry cable operators, fell nearly 3% to roughly $38.7 billion. Perhaps most telling is the subscriber metric: the average cable network saw its subscriber base erode by 7.1% to 31.4 million homes.

However, S&P emphasized that this “decline stage” forecasts a long, slow bleedout rather than a precipitous fall. “After digesting all the major events that took place in 2025, it is clear that the industry has reached a turning point,” Robson wrote. “That being said, our outlook does not call for a major collapse but rather a continued slow decline as the transition to streaming develops.”

S&P noted that despite the overarching downward trend, the rate of pay TV subscription decline appeared to slow in 2025, with the industry actually registering slight subscriber growth in the third quarter.

Operators are attempting to manage this descent by clinging to the industry’s last reliable life raft: live sports. The year 2026 looms large, featuring both the Winter Olympics and the FIFA World Cup. Comcast has even relaunched NBCSN, packaging it into a sports-centric bundle on YouTube TV to capture viewers who haven’t yet migrated to its Peacock streaming service.

A separate S&P analysis concluded that sports may no longer be a moat for the declining linear TV business. “Live sports may not be the anchor that once kept consumers from cutting the video cord,” S&P’s Keith Nissen wrote.

Nissen cited an S&P survey that found 90% of households dropping traditional pay TV for sports over the past year were sports fans, and nearly two-thirds of them spent five or more hours per week watching sports. “This serves as evidence that access to live sports is no longer a differentiator between traditional and virtual multichannel services.”

Robson warned that the friction between rising costs and falling value has intensified, with 2025 marred by carriage disputes, including blackouts of Walt Disney and TelevisaUnivision networks on YouTube TV, as distributors pushed back against rising rates for diminishing audiences.

As 2026 approaches, the industry outlook is one where underperforming networks face relegation to expensive tiers or outright closure.

The situation is akin to an estate sale for a once-grand mansion. The owners (media conglomerates) are systematically selling off the furniture (cable networks) and moving the most valuable heirlooms (premium content and sports rights) into a modern apartment across town (streaming), leaving the old house to slowly empty out, room by room.

Editor’s note: The author worked for Netflix from June 2024 through July 2025.

This story was originally featured on Fortune.com



Source link

Continue Reading

Business

Homeland Security investigates Minnesota for apparent fraud costing taxpayers up to $9 billion

Published

on



Federal Homeland Security officials were conducting a fraud investigation on Monday in Minneapolis, Department of Homeland Security Secretary Kristi Noem said.

The action comes after years of investigation that began with the $300 million scheme at the nonprofit Feeding Our Future, for which 57 defendants in Minnesota have been convicted. Prosecutors said the organization was at the center of the country’s largest COVID-19-related fraud scam, when defendants exploited a state-run, federally funded program intended to provide food for children.

federal prosecutor alleged earlier in December that half or more of the roughly $18 billion in federal funds that supported 14 programs in Minnesota since 2018 may have been stolen.

Minnesota Gov. Tim Walz said then that fraud will not be tolerated and that his administration “will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.”

Noem on Monday posted a video on the social platform X showing DHS officers going into an unidentified business and questioning the person working behind the counter. Noem said that officers were “conducting a massive investigation on childcare and other rampant fraud.”

“The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found,” U.S. Immigration and Custom Enforcement posted.

The action comes a day after FBI Director Kash Patel said on X that the agency had “surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs.”

Patel said that previous fraud arrests in Minnesota were “just the tip of a very large iceberg.”

President Donald Trump has criticized Walz’s administration over the fraud cases to date.

In recent weeks, tensions have been high between state and federal enforcement in the area as the Trump administration’s immigration crackdown focused on the Somali community in the Minneapolis-St. Paul area, which is the largest in the country.

Among those running schemes to get funds for child nutrition, housing services and autism programs, 82 of the 92 defendants are Somali Americans, according to the U.S. Attorney’s Office for Minnesota.

Walz spokesperson Claire Lancaster said that the governor has worked for years to “crack down on fraud” and was seeking more authority from the Legislature to take aggressive action. Walz has supported criminal prosecutions and taken a number of other steps, including strengthening oversight and hiring an outside firm to audit payments to high-risk programs, Lancaster said.



Source link

Continue Reading

Business

Down Arrow Button Icon

Published

on



President Donald Trump warned Iran against reconstituting its nuclear program Monday as he welcomed Israeli Prime Minister Benjamin Netanyahu to his home in Florida for wide-ranging talks.

The warning comes after Trump has insisted that Tehran’s nuclear capabilities were “completely and fully obliterated” by U.S. strikes on key nuclear enrichment sites in June. But Israeli officials have been quoted in local media expressing concern about Iran rebuilding its supply of long-range missiles capable of striking Israel.

“Now I hear that Iran is trying to build up again,” Trump told reporters soon after Netanyahu arrived at his Mar-a-Lago estate. “And if they are, we’re going to have to knock them down. We’ll knock them down. We’ll knock the hell out of them. But hopefully that’s not happening.”

Trump’s warning to Iran comes as his administration has committed significant resources to targeting drug trafficking in South America and the president looks to create fresh momentum for the U.S.-brokered Israel-Hamas ceasefire. The Gaza deal is in danger of stalling before reaching its complicated second phase that would involve naming an international governing body and rebuilding the devastated Palestinian territory.

Iran has insisted that it is no longer enriching uranium at any site in the country, trying to signal to the West that it remains open to potential negotiations over its atomic program. But Netanyahu was expected to discuss with Trump the need to potentially take new military action against Tehran just months after launching a 12-day war on Iran.

The Iranian mission to the United Nations did not immediately respond to a request for comment on Trump’s warning.

Trump criticized Iran anew for not making a deal to completely disarm its nuclear program ahead of the U.S. and Israeli strikes earlier this year.

“They wish they made that deal,” Trump said.

Gaza ceasefire progress has slowed

Trump, with Netanyahu by his side, said he wants to get to the second phase of the Gaza deal “as quickly as we can.”

“But there has to be a disarming of Hamas,” Trump added.

The ceasefire between Israel and Hamas that Trump championed has mostly held, but progress has slowed recently. Both sides accuse each other of violations, and divisions have emerged among the U.S., Israel and Arab countries about the path forward.

The truce’s first phase began in October, days after the two-year anniversary of the initial Hamas-led attack on Israel that killed about 1,200 people. All but one of the 251 hostages taken then have been released, alive or dead.

The Israeli leader, who also met separately with Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, has signaled he is in no rush to move forward with the next phase as long as the remains of Ran Gvili are still in Gaza.

Gvili’s parents met with Netanyahu as well as Rubio, U.S. envoy Steve Witkoff and the president’s son-in-law, Jared Kushner, in Florida on Monday. The Gvilis are expected to meet with Trump later in the day, according to the Hostages and Missing Families Forum, a group that advocates for families of abductees of the Oct. 7, 2023, attack.

“They’re waiting for their son to come home,” Trump said of the family of the young police officer known affectionately as “Rani,”

Next phase is complex

The path ahead is certainly complicated.

If successful, the second phase would see the rebuilding of a demilitarized Gaza under international supervision by a group chaired by Trump and known as the Board of Peace. The Palestinians would form a “technocratic, apolitical” committee to run daily affairs in Gaza, under Board of Peace supervision.

It further calls for normalized relations between Israel and the Arab world and a possible pathway to Palestinian independence. Then there are thorny logistical and humanitarian questions, including rebuilding war-ravaged Gaza, disarming Hamas and creating a security apparatus called the International Stabilization Force.

Much remains unsettled

Two main challenges have complicated moving to the second phase, according to an official who was briefed on those meetings. Israeli officials have been taking a lot of time to vet and approve members of the Palestinian technocratic committee from a list given to them by the mediators, and Israel continues its military strikes.

Trump’s plan also calls for the stabilization force, proposed as a multinational body, to maintain security. But it, too, has yet to be formed. Whether details will be forthcoming after Monday’s meeting is unclear.

A Western diplomat said there is a “huge gulf” between the U.S.-Israeli understanding of the force’s mandate and that of other major countries in the region, as well as European governments.

All spoke on the condition of anonymity to provide details that haven’t been made public.

The U.S. and Israel want the force to have a “commanding role” in security duties, including disarming Hamas and other militant groups. But countries being courted to contribute troops fear that mandate will make it an “occupation force,” the diplomat said.

Hamas has said it is ready to discuss “freezing or storing” its arsenal of weapons but insists it has a right to armed resistance as long as Israel occupies Palestinian territory. One U.S. official said a potential plan might be to offer cash incentives in exchange for weapons, echoing a “buyback” program Witkoff has previously floated.

Trump makes case once again for Netanyahu pardon

The two leaders, who have a long and close relationship, heaped praise on each other. Trump also tweaked the Israeli leader, who at moments during the war has raised Trump’s ire, for being “very difficult on occasion.”

Trump also renewed his call on Israeli President Isaac Herzog to grant Netanyahu, who is in the midst of a corruption trial, a pardon.

Netanyahu is the only sitting prime minister in Israeli history to stand trial, after being charged with fraud, breach of trust and accepting bribes in three separate cases accusing him of exchanging favors with wealthy political supporters.

Trump has previously written to Herzog to urge a pardon and advocated for one during his October speech before the Knesset. He said Monday that Herzog has told him “it’s on its way” without offering further details.

“He’s a wartime prime minister who’s a hero. How do you not give a pardon?” Trump said.

Herzog’s office said in a statement that the Israeli president and Trump have not spoken since the pardon request was submitted, but that Herzog has spoken with a Trump representative about the U.S. president’s letter advocating for Netanyahu’s pardon.

“During that conversation, an explanation was provided regarding the stage of the process in which the request currently stands, and that any decision on the matter will be made in accordance with the established procedures,” the Israeli president’s office. “This was conveyed to President Trump’s representative, exactly as President Herzog stated publicly in Israel.”



Source link

Continue Reading

Business

Silicon Valley summit offers rare insight into humanoid robots—and China is the clear winner

Published

on



Robots have long been seen as a bad bet for Silicon Valley investors — too complicated, capital-intensive and “boring, honestly,” says venture capitalist Modar Alaoui.

But the commercial boom in artificial intelligence has lit a spark under long-simmering visions to build humanoid robots that can move their mechanical bodies like humans and do things that people do.

Alaoui, founder of the Humanoids Summit, gathered more than 2,000 people this week, including top robotics engineers from Disney, Google and dozens of startups, to showcase their technology and debate what it will take to accelerate a nascent industry.

Alaoui says many researchers now believe humanoids or some other kind of physical embodiment of AI are “going to become the norm.”

“The question is really just how long it will take,” he said.

Disney’s contribution to the field, a walking robotic version of “Frozen” character Olaf, will be roaming on its own through Disneyland theme parks in Hong Kong and Paris early next year. Entertaining and highly complex robots that resemble a human — or a snowman — are already here, but the timeline for “general purpose” robots that are a productive member of a workplace or household is farther away.

Even at a conference designed to build enthusiasm for the technology, held at a Computer History Museum that’s a temple to Silicon Valley’s previous breakthroughs, skepticism remained high that truly humanlike robots will take root anytime soon.

“The humanoid space has a very, very big hill to climb,” said Cosima du Pasquier, co-founder of Haptica Robotics, which works to give robots a sense of touch. “There’s a lot of research that still needs to be solved.”

The Stanford University postdoctoral researcher came to the conference in Mountain View, California, just a week after incorporating her startup.

“The first customers are really the people here,” she said.

Researchers at the consultancy McKinsey & Company have counted about 50 companies around the world that have raised at least $100 million to develop humanoids, led by about 20 in China and 15 in North America.

China is leading in part due to government incentives for component production and robot adoption and a mandate last year “to have a humanoid ecosystem established by 2025,” said McKinsey partner Ani Kelkar. Displays by Chinese firms dominated the expo section of this week’s summit, held Thursday and Friday. The conference’s most prevalent humanoids were those made by China’s Unitree, in part because researchers in the U.S. buy the relatively cheap model to test their own software.

In the U.S., the advent of generative AI chatbots like OpenAI’s ChatGPT and Google’s Gemini has jolted the decades-old robotics industry in different ways. Investor excitement has poured money into ambitious startups aiming to build hardware that will bring a physical presence to the latest AI.

But it’s not just crossover hype — the same technical advances that made AI chatbots so good at language have played a role in teaching robots how to get better at performing tasks. Paired with computer vision, robots powered by “visual-language” models are trained to learn about their surroundings.

One of the most prominent skeptics is robotics pioneer Rodney Brooks, a co-founder of Roomba vacuum maker iRobot who wrote in September that “today’s humanoid robots will not learn how to be dexterous despite the hundreds of millions, or perhaps many billions of dollars, being donated by VCs and major tech companies to pay for their training.” Brooks didn’t attend but his essay was frequently mentioned.

Also missing was anyone speaking for Tesla CEO Elon Musk’s development of a humanoid called Optimus, a project that the billionaire is designing to be “extremely capable” and sold in high volumes. Musk said three years ago that people can probably buy an Optimus “within three to five years.”

The conference’s organizer, Alaoui, founder and general partner of ALM Ventures, previously worked on driver attention systems for the automotive industry and sees parallels between humanoids and the early years of self-driving cars.

Near the entrance to the summit venue, just blocks from Google’s headquarters, is a museum exhibit showing Google’s bubble-shaped 2014 prototype of a self-driving car. Eleven years later, robotaxis operated by Google affiliate Waymo are constantly plying the streets nearby.

Some robots with human elements are already being tested in workplaces. Oregon-based Agility Robotics announced shortly before the conference that it is bringing its tote-carrying warehouse robot Digit to a Texas distribution facility run by Mercado Libre, the Latin American e-commerce giant. Much like the Olaf robot, it has inverted legs that are more birdlike than human.

Industrial robots performing single tasks are already commonplace in car assembly and other manufacturing. They work with a level of speed and precision that’s difficult for today’s humanoids — or humans themselves — to match.

The head of a robotics trade group founded in 1974 is now lobbying the U.S. government to develop a stronger national strategy to advance the development of homegrown robots, be they humanoids or otherwise.

“We have a lot of strong technology, we have the AI expertise here in the U.S.,” said Jeff Burnstein, president of the Association for Advancing Automation, after touring the expo. “So I think it remains to be seen who is the ultimate leader in this. But right now, China has certainly a lot more momentum on humanoids.”



Source link

Continue Reading

Trending

Copyright © Miami Select.