Macquarie sees Pay TV facing decline amid a shift to streaming

Investing.com — Following Comcast Corp (NASDAQ:CMCSA)plans to spin off most of its cable networks and MLB’s plan to exit regional sports, Macquarie analysts highlighted growing challenges for the traditional pay TV industry.

Comcast recently announced plans to spin off most of its cable networks, keeping only NBC broadcast and Peacock. This move is seen as modestly positive for the company, as it sheds a declining revenue business with a low implied trading multiple.

But analyst further argues that cable networks will likely struggle after its separation from its studios.

Major League Baseball (MLB) also revealed it will exit regional sports after 2028. The league is expected to bid out the rights for 14-16 teams without their own regional deals on a national scale, potentially opening the door for streaming services like Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Netflix (NASDAQ:NFLX) to make substantial bids. The move could further cement streaming’s dominance in sports, a sector historically reliant on traditional TV broadcasts.

The NFL’s long-term TV deals could be at risk, with analysts speculating that the league may opt out of its contracts with CBS, Fox, NBC, and ESPN starting in 2029 and 2030.

Note also pointed to Warner Bros Discovery (NASDAQ:WBD) securing some rights to NBA games in select international markets and continuing to license its popular Inside the NBA show to ESPN.