Unpacking Dr. Phil’s Media Downfall: What Went Wrong?

Phil McGraw’s Merit Street Media is facing bankruptcy and has filed a lawsuit against Trinity Broadcasting. Merit Street claims that Trinity, its distribution partner, didn’t uphold its end of their contract, which contributed to the financial difficulties leading to the Chapter 11 filing on July 2.

Trinity Broadcasting, known for its Christian programming, has a reach of about 65 million homes in the U.S. However, Merit Street argues that Trinity forced it into costly third-party distribution deals instead of utilizing its local stations. They also complained about poor production services for Merit TV’s shows. Financial struggles made it hard for Merit Street to secure additional funding, pushing them toward bankruptcy.

Before the bankruptcy, signs of trouble were evident. Merit Street launched Merit TV during a time when streaming was becoming the primary choice for viewers. Their distribution was scattered, often available on digital subchannels but not included on major platforms like Comcast and YouTube TV.

Merit TV’s flagship show is McGraw’s Dr. Phil Primetime. Other content included a morning and evening newscast and several original shows featuring hosts like Nancy Grace and Chris Harrison. They planned to broadcast Professional Bull Riders events starting in July 2024, but PBR pulled their programming over unpaid rights fees, leading to an ongoing arbitration.

After the bankruptcy filing, production of all shows, including Dr. Phil, halted, transforming Merit TV into a channel mostly airing reruns and infomercials. Their YouTube channel also struggled, with under 90,000 subscribers and minimal engagement—most recent videos barely reached 40,000 views.

Public interest hasn’t favored Merit TV, evidenced by its poor viewer ratings. In 2024, it managed only 27,000 average viewers during primetime, placing it 130th among broadcast and cable networks. While it briefly climbed to 65th place earlier in the year, numbers dropped significantly to just 17,000 by the second quarter of 2025.

In a broader context, this situation reflects the ongoing challenges traditional broadcast networks face against streaming giants. According to a recent survey, 82% of Americans use streaming services, leaving traditional TV networks struggling to retain audiences.

Merit TV’s struggles highlight the shift in viewer habits and the need for innovative strategies in a rapidly changing media landscape. As Dr. Robert Wright, a media expert, pointed out, “Networks must adapt or risk becoming obsolete.”

In summary, the road ahead looks uncertain for Merit Street Media, with the bankruptcy filing underscoring the tough climate for linear television channels. Amid these challenges, it remains to be seen how they will navigate the future.

For more insights on the state of media and viewer trends, check out this report on streaming services.

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Phil McGraw