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The news: Warner Bros. Discovery (WBD) plans to split into two separate public companies by 2026, one focused on streaming and studios and the other on global cable networks, the company announced. Its streaming company will include HBO Max and WBD’s movie properties, while the global networks company will include TNT Sports, Discovery, and CNN. Our take: WBD’s move emphasizes that sticking with a one-size-fits-all model is no longer viable given traditional TV declines and the rise of streaming. Managing decline while pursuing growth requires two fundamentally different playbooks.

The trend: Gen Z is opting out of both traditional pay TV and ad-supported streaming tiers, signaling deeper changes in viewing behavior. Just 42% of Gen Z subscribers use ad-supported SVOD, while less than half of all US households now maintain a pay TV subscription. Our take: Streaming’s future depends on reaching the next generation, but current models—especially ad-supported tiers—aren’t meeting Gen Z where they are. With only 1.3 hours of streaming and 0.8 hours of traditional TV per day, Gen Z prefers social video, gaming, and music. To stay relevant, platforms must prioritize native formats, interactivity, and creator integration over legacy ad models.

NBCU highlights sports, streaming at Upfront event: The presentation outlined NBCU’s plan to offset declining traditional TV revenues.

This year, streaming services will finally earn more than traditional TV in subscription revenues.

Major creators will hold event to vie for YouTube ad dollars: The Spotter Showcase will unveil crucial data and content slates to draw marketers away from traditional TV.

The traditional TV bundle will further decay as more live sports embrace streaming.

Fox acquires Red Seat Ventures: As audiences shift from traditional TV, The company is expanding its digital-first media push.

In 2024, traditional TV accounted for less than half of US total video subscription revenues for the first time. Its share of video subscription revenues will slip to about one-third by the end of our forecast in 2028.

OTT video—including YouTube, subscription OTT, AVOD, and free ad-supported streaming TV—is extremely popular in nearly all forms. But traditional pay TV continues to reach new lows.

Digital sports viewership surpasses TV: Fragmentation challenges consumers, while younger audiences drive demand for highlights and streaming innovation.

Digital eclipsed traditional pay TV among live sports viewers in 2023. As that lead grows, the growth of women’s sports and betting apps provides marketers with opportunities to reach new audiences.

The news: US adults are increasingly dependent on digital platforms for news, with social media and video overtaking traditional news outlets for the first time. 54% of US adults get their news from social media, per the Reuters Institute’s 2025 Digital News Report, compared with 50% from TV news and 48% from news websites and apps. Our take: Linear platforms could offer personalized news digests and mobile- and social- friendly content to reengage younger users, while advertisers should diversify their campaigns across social media platforms to follow fragmented user engagement.

The news: The 2025 NBA Finals drew just 10.2 million viewers on average, among the weakest results in two decades—yet Game 7 peaked at 19.3 million, the highest since 2019. Traditional ratings miss the full picture, though: social views on NBA Finals content soared 215% year over year to 5 billion. Our take: Gen Z sports fans are watching differently—via highlights, short clips, and mobile-first formats on YouTube, Instagram, and TikTok. TV still matters, but leagues like the NBA must master new distribution models. With streaming growth and a massive $76B media deal in place, the future is already digital.

US political ad spending will hit new highs amid the 2024 presidential election, with connected TV (CTV) driving the biggest gains. Despite the digital shift, traditional TV—long a mainstay of political advertising—will hold its own.