Private equity firms are likely to emerge as the primary consolidators of traditional TV networks starting in 2026, as regulatory challenges continue to stall large-scale mergers between major Hollywood studios, according to a new research note from TD Cowen analyst Doug Creutz.

Creutz said consolidation among linear TV networks could accelerate if companies like Warner Bros. Discovery follow Comcast’s lead in spinning off non-core linear assets. “We tend to think 2026 is a more likely timeframe, with private equity being the most likely consolidator,” he wrote.

The prediction comes amid a broader rethink within the media sector, where profitability challenges and rising subscriber churn are forcing companies to reassess direct-to-consumer (DTC) streaming strategies. Creutz argued that media firms should abandon standalone streaming models—which require costly consumer acquisition spending and high content production costs—and refocus on bundling content to drive profitability.

“We think the only way the industry returns to real health is to give up on the standalone DTC dream and figure out a way to rebundle everyone’s content together,” Creutz said, pointing to recent bundling initiatives such as the Disney+/Max offer as directionally positive.

TD Cowen warned that long-term profitability for streaming remains elusive, with slowing subscriber growth, increased price sensitivity, and further advertising revenue pressure expected—particularly in a weaker macroeconomic environment.

Private equity’s expected role in reshaping the TV landscape mirrors moves seen in other disrupted media sectors, as investors look to capture value by consolidating legacy assets, streamlining operations, and preparing platforms for digital transition or asset optimisation.

Source: The Wrap