Broadcasting business Discovery Communications (DISCA  ) just finalized a $11.9 billion deal to purchase a fellow media company, Scripps Network (SNI  ). According to the deal, Discovery Communications will pay the large amount by $90 per Scripps share, while accruing a debt of $2.7 billion. In doing so, Discovery Communications and the Scripps Network will create a reimagined network that is geared towards unscripted material.

The hefty deal proves to be beneficial for Scripps, a company that owns the fourth-most watched prime-time network in the United States, HGTV (Home and Garden Network). While Discovery Communications owns profitable channels such as TLC and the Oprah Winfrey Network, the combination between the two companies could create a new leading destination for reality and lifestyle shows. Scipps Chairman and CEO Kenneth W. Lowe expanded on the fortuitous deal, stating that their new relationship with Discovery "presents an unmatched opportunity for Scripps to grow its leading lifestyle brands across the world and on new and emerging channels including short-form, direct-to-consumer and streaming platforms."

Although the agreement proves to be advantageous for both companies, the competition between traditional cable programming and on-demand television streaming remains. Contenders such as Netflix and Youtube are at the forefront of successful television and web series, a factor that is supported by their viewers' ability to watch and subscribe to a plethora of series with a click of a button. The wide array of entertainment choices viewers have allow entertainment companies to provide enough options that will not only appeal to, but attract a dedicated audience. Even Discovery CEO David Zaslav has realized the strong pull that streaming sites have on viewers, stating that cable channels "don't want mere viewers, they want "super-fans," people who aren't tuning in because they like you, but are tuning in because they LOVE you."

While Discovery Communications will inevitably have to face web-based competition, the network itself may have an advantage in the digital world. The mass broadcasting company has already made investments into the digital through Group Nine Media, a digital media holding company that carries well known brands such as Thrillist and Now This. With Discovery Communication's presence as a leading media company, agreements with other digital media like Facebook (FB  ) and Snapchat (SNAP  ) can occur in the near future.

Until then, Discovery will have to continue to prove it's worth as a basic cable channel provider. Accompanying it's announcement concerning its combined future with Scripps Network, Discovery Communications stocks continued to fall 8% the same day. The combination of companies may prove to be out of desperation rather than strength, according to analysts. As a result, the two companies may face a difficult time gaining the confidence of investors, falling short of what could possibly be a strong force in the television industry. This possibility can be seen by the numbers alone. The combination between the two companies allows Discovery Communications to dominate 20% of ad-supported television. If the mass media giant can manage to reel in a new wave of devoted watchers, there may be a positive future for cable television after all.