Hold onto your remote control – The CW is poised for profitability, but the journey to that milestone in 2026 is filled with unexpected shifts and strategic gambles that could leave viewers divided. According to Lee Ann Gliha, the CFO of parent company Nexstar, the network is finally on track to flip from losses to gains, marking a significant turnaround for a channel that's been navigating turbulent waters since Nexstar acquired a commanding 75% stake back in 2022. But here's where it gets controversial – is this pivot away from beloved scripted dramas really the winning formula?
To set the stage, The CW was once a collaborative effort with CBS and Warner Bros. Discovery each holding a 50% share, but the landscape changed dramatically in 2022 when Nexstar stepped in to take control of 75%, leaving the others with just 12.5% each. At the time, executives optimistically forecasted breaking even – that's when revenues start matching expenses, a basic financial goal meaning no net loss or gain – by 2025. They committed to a sweeping overhaul without any immediate cash outlay, instead shouldering the network's existing debts. Fast-forward to now, and that timeline has extended to sometime in 2026, as Gliha explained during her appearance at the UBS Global Media and Communications Conference on Monday.
Reflecting on the progress, Gliha shared that the network began as a deeply unprofitable operation, but through consistent improvements quarter by quarter and year by year, it's steadily climbing toward sustainability. In 2025, she anticipates a 25% boost in profitability compared to the previous year, setting the stage for full profitability to kick in at some point during 2026. This transformation has come from drastic cost-cutting measures in programming, slashing costs by more than half, while simultaneously expanding the total hours of content by 40%. Sports programming, which now makes up 40% of the schedule, has been a major driver, replacing the network's long-running hour-long scripted dramas with a mix of live sports and unscripted reality fare. For instance, shows like the popular football drama All American – one of the few survivors from the old lineup – has just been renewed for its eighth and final season, offering a nostalgic nod to fans even as the focus shifts elsewhere.
And this is the part most people miss – the strategic embrace of sports rights, which weren't fully anticipated when the deal was struck. The CW has aggressively pursued licenses for high-profile events like LIV Golf tournaments, NASCAR races, college football and basketball games, and even the sports-adjacent WWE NXT wrestling. Nexstar CEO Perry Sook likes to frame this approach as a 'Moneyball' strategy, borrowing from the baseball metaphor of smart, data-driven investments. Yet, as Gliha pointed out, the sports sector carries inherent volatility – think unpredictable ratings or sponsorship deals that can swing wildly based on viewer interest or global events, making it a risky bet for long-term stability. Imagine, for example, how a major scandal in golf or a dip in wrestling popularity could impact the network's bottom line, potentially derailing those projected profits.
Gliha expressed pride in the achievements so far, emphasizing that profitability metrics don't capture the full picture. Another key win from owning The CW has been reclaiming a significant number of its affiliate stations – those local broadcasters that carry the network's signal – and integrating them back under Nexstar's umbrella. This move has proven highly lucrative, boosting overall revenues and proving the acquisition's value beyond just the network itself. When you consider the complete package, from cost efficiencies to affiliate gains, it's clear why Gliha views it as a solid deal for Nexstar.
But let's stir the pot a bit – the shift from gripping dramas to sports-heavy programming has sparked debate among fans. Some argue it's a savvy business decision to attract broader audiences and advertisers, while others lament the loss of original storytelling that defined The CW's identity, like teen mysteries or supernatural thrillers. Could this mean the network is alienating its core demographic in favor of casual viewers? Or is it a necessary evolution in an era where streaming giants dominate scripted content? What do you think – does the sports pivot energize The CW for the future, or is it a step too far? Share your opinions in the comments below; I'd love to hear if you're cheering for more touchdowns or craving a return to scripted sagas!
