PRO Tip Sheet: 4 Insights From This Week

This week we explored the impact of a brutal year of media layoffs, revealed the 2023 TV ratings winners, broke down pros and cons of a WBD-Paramount merger and discussed 2024 predictions for media, tech and entertainment. 4 Insights From WrapPRO ’Twas the week before Christmas…and we explored how Americans face the prospect of more “news deserts” as media companies continue to lay off journalists in high numbers. We also revealed the TV ratings winners in 2023, broke down the pros and cons of a potential acquisition by Warner Bros. Discovery of rival Paramount Global and highlighted 10 predictions for media, tech and entertainment in 2024. 1. [As More Media Layoffs Ring in the New Year, Americans Face Prospect of ‘News Deserts’]( By Korach | Source: [WrapPRO]( - Media giants like Condé Nast, G/O Media, Vice Media, and Vox Media have collectively cut 2,681 journalism jobs in 2023, marking a 48% increase from 2022 and highlighting the industry's struggle with advertising volatility. - Traditional media outlets face tough decisions in 2024, with legacy media grappling with advertising revenue declines, making staff cuts, and facing challenging market conditions that led to the closure of female-focused publication Jezebel. - Nonprofit newsrooms show promise amid industry challenges, growing by 17% in 2022 and increasing revenues by 19% to nearly $500 million between 2021 and 2022, suggesting a potential avenue for sustainable journalism. - The outlook for journalism is dimmed by a darkening advertising landscape, with U.S. newspaper publishers expected to lose $2.4 billion in advertising investment by 2026, emphasizing the need for diversified revenue streams and wider reach strategies. - Generative AI, driven by Wall Street and Big Tech pressure, enters the media landscape, leading to controversies like the use of AI by Sports Illustrated, while vulture capitalist strategies involving hedge funds and private equity firms contribute to newsroom staff reductions. [Keep Reading]( 2. [Breaking Down the Pros and Cons of a Potential Warner-Paramount Merger]( By Lucas Manfredi | Source: [WrapPRO]( - A potential Warner Bros. Discovery and Paramount Global merger could create the second-largest streaming service by combining Max, Discovery+, Paramount+, and Showtime, with a subscriber base surpassing Disney+ and aiming to challenge Netflix's dominance. - Warner Bros. Discovery's profitability in the direct-to-consumer division, coupled with Paramount's improvement in streaming losses, positions the merged entity for significant earnings improvement in 2024, while allowing Shari Redstone to retain influence in Hollywood. - The deal would enhance Warner Bros. Discovery's content portfolio, giving it access to Paramount's family-focused IP, including Nickelodeon and “Yellowstone,” and potentially allow it to control CBS News without violating FCC rules. - Even if the talks don't lead to a final deal, discussions between Paramount and Warner Bros. Discovery could spur other potential suitors like Comcast, Amazon, and Apple to make more attractive offers, increasing the likelihood of significant industry consolidation. - Potential regulatory hurdles, particularly related to antitrust concerns and FCC rules, could pose challenges for the merger. Additionally, the merger could lead to debt-related issues, triggering change-of-control provisions and drawing attention from lawmakers, while the impact on talent relationships may require strategic handling. [Keep Reading]( 3. [2023 TV Ratings Winners: The Biggest Hits and Unexpected Successes]( By Loree Seitz | Source:WrapPRO]( - Hollywood's linear television business faced continued decline in 2023, but unexpected pop culture events, such as Taylor Swift's impact on NFL viewership and the success of streaming sensation “Suits,” provided reasons for the industry to celebrate. - HBO's adaptation of the video game franchise “The Last of Us” became a tentpole series, with consistent viewership growth throughout its first season, marking the network's second-largest debut since 2010. - NBC's reboot of the sitcom “Night Court” brought in a substantial 7.5 million viewers for its premiere, outperforming other NBC shows on Peacock, setting the stage for a successful first season and a likely retention of viewers. - The scandal involving “Vanderpump Rules” stars Tom Sandoval and Rachel Leviss (Scandoval) fueled a ratings surge, with the March 8 episode achieving the highest total viewers and highest-rated episode in nearly three years, making it the most-watched Bravo episode in over nine years. - The legal drama “Suits” experienced an unprecedented streaming craze after its return to Netflix's library, breaking records for consecutive weeks as the most watched acquired series and prompting NBCUniversal to explore a spin-off set in the “Suits” universe. [Keep Reading]( 4. [10 Predictions for Media, Entertainment and Tech in 2024]( By Peter Csathy | Source:WrapPRO]( - Columnist Peter Csathy breaks down his predictions for 2024, which highlight the pivotal role of AI, evolving content consumption patterns, regulatory shifts and the dynamic landscape of media and entertainment. - AI's transformative impact on the entertainment industry will be the dominant narrative in 2024, with a focus on generative AI experimentation, AI-dubbing by companies like Flawless, and the potential disruption of traditional industry jobs. - Anticipate the U.S. catching up with the EU in regulating AI, as Congress aims to establish guardrails for transparency, content provenance, and protection against the misuse of names, images, and voices, with copyright remaining a crucial factor. - TikTok's growing influence and shift towards longer-form content will encroach on Netflix's territory, impacting streaming budgets and leading to a focus on evergreen franchise content, while free ad-supported television channels gain momentum globally. - Social media, driven by AI, will intensify its influence on society, especially during the election year, with Elon Musk's actions on Twitter contributing to a decline in X/Twitter's valuation and potential repercussions on global defense communications. - Hollywood mergers and acquisitions will surge in 2024, with Disney making strategic moves, Big Tech eyeing traditional media players, and the industry witnessing increased consolidation to capture and retain audience attention. [Keep Reading]( With a focus on delivering actionable intelligence, the PRO Tip Sheet empowers readers to stay ahead of the game in the industry. Want to go deeper? [Explore WrapPRO today](. TheWrap | 2034 Armacost Ave Los Angeles, CA 90025 [Unsubscribe](