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Megan McArdle

Cord Cutting and Hollywood: The Sequel

Viacom's $785 million write-down suggests that the heart of the cable industry is already feeling the disruptions of unbundling, and that more changes are probably coming.
Going up?

Going up?

Photographer: Andrew Harrer/Bloomberg

On Tuesday, I asked what the unbundling of cable would do to Hollywood. Today, a couple of follow-up notes.

The first is on Viacom's $785 million write-down, more than half of which was due to the falling value of reruns like "CSI," "Community" and "30 Rock." With advertising soft and people shifting away from cable, filling screens with a continuous loop of episodic dramas is no longer as lucrative as it once was.