Why Cable TV is Quickly Becoming a Relic of the Past

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
Why Cable TV is Quickly Becoming a Relic of the Past
Evan Xie

This is the web version of dot.LA’s daily newsletter. Sign up to get the latest news on Southern California’s tech, startup and venture capital scene.

According to a new report in The Wall Street Journal, Disney plans to transition ESPN from a cable network into an internet streaming service. The project, internally codenamed “Flagship,” remains in its early stages, with Disney contacting partners and leagues to hammer out new licensing deals, should the entire network pivot from cable to the cloud.


In the short term, ESPN plans to launch the streaming service while keeping the cable network intact. But unlike ESPN+, the new streamer will no longer serve as a supplement to the flagship cable network; all original content and live games will be featured on both platforms. On a purely narrative side, this certainly represents the “end of an era” and a milestone in the entertainment industry’s gradual transition from linear television to streaming. But it could also, in a very real way, mean the end of the cable television industry as it has been known for decades.

ESPN is one of the most significant and popular cable networks, with exclusive access to a lot of high-profile sports and original programming like “SportsCenter.” It’s a key reason that millions of Americans have kept their cable subscriptions active to date. Without ESPN as an exclusive draw, it’s likely that many of these consumers will opt to finally cut the cord and move their TV viewing entirely over to streaming services.

Though Cable’s Losing Ground, It’s Not Dead Yet

YouTube launched in 2005, and Netflix first unveiled its “watch instantly” streaming option in 2007. That same year, Hulu arrived as an major ad-supported streaming service backed by legit entertainment and media companies like NBC and NewsCorp (which still owned Fox). By 2008, Amazon rebranded its native video platform as “Amazon Video on Demand.” For the first time, a multitude of original TV shows and films – not just user-generated content but mainstream Hollywood studio-backed productions – were available online and on-demand, without a cable subscription. This was the point when “cord-cutting” first entered the national lexicon.

Though the term has long-since entered everyday, common use, and over 47 million Americans have indeed cut the cord and canceled their cable subscriptions, we still haven’t really come close to actually leaving cable TV behind entirely. According to Nielsen, streaming viewership only surpassed overall cable viewing in the US for the very first time in July of 2022. Between March 27 and April 30 of this year, cable still accounted for 30% of overall TV viewing in the US.

Streaming shows and platforms soak up a lot of the press and attention, which can distract from the reality that a majority of Americans – particularly members of older generations – on the whole watch more network and basic cable shows than anything on Apple TV+ or Peacock. This cultural disconnect was highlighted on social media earlier this month, when a clip from the popular ABC medical drama series “The Good Doctor” went viral on social media. While cord-cutters who’ve long been ignoring network TV dramas in favor of critical favorites and streaming originals had no idea the long-running show even existed before clips popped up on Twitter, it’s a long-standing popular favorite for the Disney-owned network that’s now in its sixth season. The show actually hit a Season 6 viewership high in April with 3.7 million viewers.

Meanwhile, on basic cable, Paramount’s troubled “Yellowstone” ranks among the most popular TV series in the country. Around 16 million people tuned in for the Season 5 premiere back in November, making it 2022’s most-watched TV episode across all platforms. According to the Social Security Administration, the fastest-growing baby name in the US is “Dutton,” after the show’s ranch-owning protagonists. (This is why Paramount is so desperate to keep the franchise alive, despite the reluctance of former star Kevin Costner.)

But Signs Are Not Looking Good

Still, it’s not exactly smooth sailing for the cable industry. Streaming has always posed an existential challenge to cable and satellite on a conceptual level. But as Advertising-based Video on Demand (AVOD) and Subscription Video on Demand (SVOD) platforms continue to improve and offer a wider range of content, it gets increasingly difficult to continue making the case for hanging on to cable subscriptions.

Additionally, overall TV ad spending will sink by an estimated 5% in the US this year, and it’s hitting cable the hardest. AMC Networks reported a 16% revenue slump in late 2022 due to the advertising slide. The company has been unable to make up for its revenue losses via subscription streaming platforms like AMC+ and Shudder; it’s new plan is to join the FAST revolution and put ads on AMC+. Income from Disney’s TV networks is also down. ESPN revenue fell to $1.8 billion in the most recent quarter, from $2.8 billion during the same period one year earlier.

Unlike network TV or streaming services, which are moving forward with overall confidence that, eventually, the market will heat up again and advertisers will return, there’s generally less confidence that the cable’s former sponsors will ever come back en masse. Many of those ad buyers will likely move over to ad-supported streaming platforms instead, with rapidly-growing FAST platforms like Pluto, Roku Channel, Freevee, and Tubi reaching more and more homes through smart TVs and devices like Roku and Amazon’s Fire TV.

In another side of trouble on the horizon for cable lovers, US broadband operator Wide Open West (or WOW!) announced plans this month to eliminate cable service entirely for its 117,000 customers. The company will instead provide access to YouTube TV as a cable replacement, while freeing up the additional bandwidth for its ISP. Should other, larger cable providers begin following suit, that could genuinely mean the actual death of cable.

Still, nothing is certain, and most media and entertainment CEOs have hesitated to actually look ahead to the permanent end of cable TV. When he returned as Disney’s CEO in late 2022, Bob Iger told investors that while the industry “is inevitably heading toward streaming,” he didn’t plan to “abandon the linear or the traditional platforms while they can still be a benefit to us and our shareholders.”

So it’s still just a bit too early to begin publishing cable TV’s obituary. But getting one started and keeping it on deck, just in case, might not be the worst idea. - Lon Harris


Subscribe to our newsletter to catch every headline.

Wonder Dynamics: Redefining the Animation Landscape
Wonder Animation

🔦 Spotlight

Happy Friday, LA!

Wonder Dynamics, a Los Angeles-based company founded by Tye Sheridan and Nikola Todorovic, has launched Wonder Animation, a beta feature that is poised to transform the landscape of video production. Acquired by Autodesk in May, Wonder Dynamics is leveraging this innovative tool, which harnesses artificial intelligence to turn standard video footage into captivating 3D animated scenes, making sophisticated animation techniques more accessible to filmmakers of all budgets.

Wonder Animation allows creators to shoot from multiple angles, with the AI reconstructing these shots into a dynamic 3D space. This functionality enables filmmakers to seamlessly blend live-action scenes with interactive virtual environments while preserving original camera movements. Users can customize various aspects, including animations, characters, lighting, and camera tracking data, and the tool integrates smoothly with popular software like Maya, Blender, and Unreal Engine.

What sets Wonder Animation apart is its emphasis on artistic control. Unlike many AI tools that impose rigid outcomes, this feature empowers creators to guide their projects, ensuring that their unique style remains front and center.

As the boundary between video and 3D animation blurs, Wonder Animation invites creators to experiment and innovate in exciting ways. This development marks a significant step forward in digital storytelling, democratizing access to high-quality visual effects and making sophisticated animation achievable for a broader range of filmmakers.

With the global animation market projected to reach approximately $400 billion in 2024 and grow to over $587 billion by 2030—reflecting a compound annual growth rate (CAGR) of about 5%—tools like Wonder Animation are more relevant than ever. This growth underscores the increasing demand for animated content and highlights the necessity of innovative solutions to meet filmmakers’ evolving needs. For those looking to elevate their storytelling, Wonder Animation may just be the key to unlocking new creative horizons. According to Statista, this upward trend in the animation market emphasizes the significant opportunities ahead.


🤝 Venture Deals

LA Companies

  • Evite, an online platform enabling users to design, send, and manage digital invitations and eCards with tools for event organization and guest tracking, has received a strategic growth investment from Francisco Partners to accelerate innovation and expand its product offerings. - learn more
LA Venture Funds
  • F4 Fund participated in a $4.1M Pre-Seed funding round for Further, a platform designed to help first-time homebuyers determine how much home they can afford by providing personalized insights on interest rates and lender requirements, giving users a clear view of their purchasing power. - learn more
  • Alexandria Venture Investments participated in a $10M Seed funding round for CrossBridge Bio, a company focused on developing advanced dual-payload antibody-drug conjugate (ADC) therapies, with the funds supporting preclinical development of its next-generation cancer treatments. - learn more
  • Clocktower Ventures participated in a $5.6M Series A funding round for Morada Uno, a startup in Mexico focused on making apartment rentals easier by providing a platform that connects tenants with landlords and simplifies processes like lease agreements and rent payments. - learn more
  • Skyview Capital participated in a $5M Series A funding round for Web3 chain game A-World, a tower defense battle game set in the metaverse on the BNB Chain, where players build hero towers to defeat waves of monsters. - learn more

      LA Exits

      • Drive Hospitality, a leading provider of personalized parking and hospitality services, including valet, concierge, bell services, parking management, and advanced technology integration, has been acquired by Propark Mobility. - learn more
      • Vebu Labs, located in El Segundo and specializing in custom automation solutions for the food industry—including the innovative 'Autocado' system that automates the peeling, coring, and scooping of avocados to enhance operational efficiency—will be acquired by Serve Robotics. - learn more

            Download the dot.LA App

            Big Wins: Dodgers Take the Title ⚾, ChatGPT Levels Up🚀

            🔦 Spotlight

            Happy Friday, LA! It’s been a week of big wins, on and off the field. 🎉

            ⚾️ First up, let’s talk Dodgers. With a thrilling 7-6 comeback victory over the Yankees in Game 5, the Dodgers clinched their eighth World Series title, their first since 2020. The city is buzzing, and fans are ready to celebrate! A parade kicks off this morning at 11 a.m., starting at City Hall and winding down to Flower Street, with a ticketed celebration at Dodger Stadium for those wanting to keep the festivities going.

            Image Source: Dodgers

            💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.

            Image Source: ChatGPT

            🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.

            From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨


            🤝 Venture Deals

            LA Companies

            • Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
            LA Venture Funds
            • Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
            • Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
            • Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
            • SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more

                Download the dot.LA App

                Billion-Dollar Milestones and Snapchat’s New Features

                🔦 Spotlight

                Happy Friday Los Angeles!

                This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.

                Image Source: Snap

                Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.

                Image Source: Liquid Death

                ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.

                Image Source: Altruist

                Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.

                Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!

                Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!


                🤝 Venture Deals

                LA Companies

                • Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
                LA Venture Funds
                • Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
                • Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more

                LA Exits


                    Download the dot.LA App

                    RELATEDEDITOR'S PICKS
                    LA TECH JOBS
                    interchangeLA
                    Trending