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Media Deals Show Linear in 'Terminal Decline': Analyst

Comcast's plans for spinning off most of its cable networks (see 2410310013), along with Diamond Sports Group having just four more years of MLB TV rights and the NFL possibly ending its linear TV deals indicate linear TV is in…

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"terminal decline," Macquarie's Tim Nollen noted last week. Nollen said an M&A-friendly government plus lower interest rates could see the Comcast spinoff becoming part of a larger cable network business using its scale to cut costs and negotiate better carriage terms. He said regional sports network Diamond emerges from its Chapter 11 reorganization with rights to at least six MLB teams until 2028 -- the same year national MLB contracts with ESPN, Fox and Turner networks end. He said MLB would like to get rid of RSNs and distribute games at a national rather than a regional level, and companies with strong direct-to-consumer platforms for national distribution, as well as deep pockets, will have the advantage. Nollen said the amounts streamers like Netflix and Comcast's Peacock are bidding for limited NFL rights raise the likelihood the league will exercise its opt-out clause in the 11-year rights deal it signed in 2021 with CBS, Fox, ESPN and NBC.