The CW, once a struggling network, is on the path to profitability, with its parent company, Nexstar, confident it will turn a profit in 2026. CFO Lee Ann Gliha revealed this during the UBS Global Media and Communications Conference, echoing the optimism of Nexstar executives. The CW's journey to financial stability began when Nexstar acquired a 75% stake in the network in 2022, taking on its debt in exchange for control. This strategic move has led to a significant transformation, replacing long-running scripted dramas with live sports and unscripted content.
Gliha highlighted the network's impressive improvements, stating that each quarter and year has seen a positive trend. By 2025, profitability is expected to surge by 25% compared to 2024, and in 2026, the network aims to achieve profitability. This turnaround is attributed to a substantial reduction in programming costs, with a 40% increase in total programming hours, making sports a significant contributor to the network's success. The CW's aggressive licensing of sports events, including LIV Golf, NASCAR, and WWE NXT, has been a strategic move, despite the inherent volatility in the sports rights sector.
While the profitability discussion is encouraging, Gliha emphasizes that it's just one aspect of the story. The acquisition's key strategic goal is to couple the network with a large number of CW affiliates, allowing Nexstar to bring these stations back under its umbrella. This move has proven to be highly profitable, making the CW acquisition a successful venture for Nexstar.
