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PRO Tip Sheet: 5 Insights From This Week

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Sat, Feb 3, 2024 05:16 PM

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This week we reported on Jon Stewart's return to “The Daily Show,” on how Netflix’s $

This week we reported on Jon Stewart's return to “The Daily Show,” on how Netflix’s $5 billion WWE deal could shake up live sports, on the demise of The Messenger and its 270 layoffs, and on how the LA Times lost 6 top editors of color in January. [5 Insights From WrapPRO]( This week the tumult in the media business continued, and we reported on the demise of The Messenger and the laying off of its 270 staffers. We also evaluated the return of Jon Stewart to “The Daily Show” and what it could mean for Comedy Central’s future, explained how Netflix’s $5 billion WWE deal could shake up live sports, exclusively reported on how the chaos at the LA Times involved the loss of six top editors of color in January and commented on how AI “deep fakes” like the one involving Taylor Swift are a real threat to artists. 1. [Jon Stewart’s Return to ‘The Daily Show’ Is a ‘Baller Move’ for Comedy Central, but Show’s Future Still Uncertain]( By Cobb and Lucas Manfredi | Source:WrapPRO]( - Jon Stewart's return to “The Daily Show” after nine years is seen as a potential lifeline for Comedy Central, which has faced declining ratings, shrinking ad spends, and challenges in finding a permanent host, with industry insiders viewing it as a strategic move by the network. - Despite uncertainties about whether Stewart's once-a-week appearance can significantly boost overall network ratings, former Comedy Central executives and analysts acknowledge its potential to give the show a bump on Monday nights. - Advertisers are expected to benefit from Stewart's return, recalling his previous success as a ratings champ, with Stewart's iteration of “The Daily Show” in 2014 bringing in over $127 million from advertisers. - Stewart's influence on political comedy and his unique approach, characterized by research-intensive humor, is expected to rejuvenate the late-night format, offering a potential remedy for Comedy Central's struggles. - While Stewart's return is seen as a positive move for the network and advertisers, questions linger about the long-term strategy for “The Daily Show” and Comedy Central's ability to connect with a changing audience, particularly the under-25 demographic. [Keep Reading]( 2. [Netflix’s $5 Billion Rumble Into WWE’s ‘Monday Night Raw’ May Shake up Live Sports]( By Lucas Manfredi | Source: [WrapPRO]( - Netflix secures a $5 billion, 10-year media rights deal with TKO Group for WWE's “Monday Night Raw,” signaling its entry into live sports programming and challenging traditional linear TV networks. - Analysts predict Netflix's move into sports streaming will escalate competition, applying upward pressure on rights costs and potentially allowing Netflix to outbid competitors like Disney, Comcast, Warner Bros. Discovery, Paramount, and Fox. - Despite Netflix's co-CEO Ted Sarandos emphasizing the WWE deal doesn't signify a shift in its sports strategy, the addition of live WWE content offers global entertainment programming at an affordable price, driving engagement without the need for expensive sports rights. - Netflix's exclusive rights to “Raw” from 2025 in the U.S., Canada, U.K., and Latin America, alongside access to all WWE shows and events, marks a historic departure for “Raw” from linear television since its 1993 inception. - The Netflix-WWE deal opens doors for international growth, particularly in India, with the potential for significant ad revenue estimated at $260 million in the U.S., $35 million each in the U.K. and Latin America, and opportunities for further expansion beyond paid subscriptions. [Keep Reading]( 3. [Who Killed The Messenger? Jimmy Finkelstein Doubled Down on a Failed Media Business Model | Analysis]( By Emily Smith, Natalie Korach and Sharon Knolle | Source:WrapPRO]( - The Messenger's abrupt shutdown, just eight months after its $50 million launch, highlights the challenges of relying on a traffic-for-advertising business model, a trend observed in other recent digital media failures like BuzzFeed and Vice. - Despite attracting 11 million unique visitors and 89 million page views in December 2023, The Messenger's revenue model based on digital ad income was unsustainable, leading to layoffs of 270 people, including 200 journalists. - The digital media landscape, dominated by Big Tech companies like Google and Meta, has strained traditional revenue streams for news outlets, with over 60% of online advertising revenue now controlled by these tech giants. - Not all digital start-ups face failure, as smaller, focused outlets like Puck News and Semafor thrive with models less reliant on Google and Meta, incorporating subscriptions and event sponsorships for financial stability. - The Messenger's financial missteps included overspending on offices, with more than $8 million spent on multiyear leases, and an overly optimistic projection of generating $100 million in 2024, leading to a drastic shutdown without any employee severance. [Keep Reading]( 4. [Talent Drain: The LA Times Lost 6 Top Editors of Color in January | Exclusive]( By Sharon Knolle | Source:WrapPRO]( - The Los Angeles Times faced a significant leadership shakeup, losing six newsroom leaders of color within a month, exacerbating existing diversity challenges. - The Jan. 22 layoffs, including 120 staff members, disproportionately impacted people of color, and prominent editors like Kimbriell Kelly and Angel Rodriguez were among those let go. - Despite the upheaval, the L.A. Times' masthead still has diversity, with top editors comprising 40% white, 30% Latino, 15% AAPI or Southeast Asian, and 10% Black. - The paper's history of grappling with diversity issues includes the departure of Norman Pearlstine in 2020, amid pushback on diversity concerns, and ongoing efforts by owner Patrick Soon-Shiong to address racial inequality. - The revolving door of top editors at the Times continues, with interim executive editor Terry Tang becoming the 11th executive editor in the past 18 years, following a series of layoffs and challenges. [Keep Reading]( 5. [Taylor Swift and AI ‘Deep Fakes’: The Threat to Artists is Real, What’s the Solution?]( By Peter Csathy | Source: [WrapPRO]( - Recent instances of deepfake technology, including fake Taylor Swift videos and a deepfake George Carlin comedy special on YouTube, highlight the potential threats and harm, both commercial and reputational, posed by generative AI in the entertainment industry. - There is a need for vigilance and monitoring of generative AI developments to understand and address potential risks, and individuals in the creative economy should actively experiment with generative AI to grasp its capabilities. - Despite the risks, there are opportunities in generative AI, such as licensed AI dubbing for film and television, enabling localized international distribution without subtitles, with companies like Flawless AI leading in this area. - But there are concerns about the misuse of generative AI, illustrated by the fake Biden robocalls likely created using AI tools from Silicon Valley-based startup ElevenLabs, which recently secured $80 million in funding, emphasizing the importance of taking action to mitigate misuse. [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](

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