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Wednesday, April 12, 2023

Judge sanctions Fox News, NPR abandons Elon Musk's Twitter, news orgs sue for 1/6 footage, The WSJ marks two weeks of Evan Gershkovich's detention, Vox Media reveals the new hosts of Code Conference, Meta's morale plummets, the WGA gets support from its British and Canadian counterparts, and so much more. But first, the A1.

THE A1

Zas Takes It To the Max

CNN Photo Illustration/Jeff Kravitz/Getty Images

Everything old is new again.

Warner Bros. Discovery unveiled its super-streamer, Max, to the world on Wednesday, with chief executive David Zaslav touting the platform as a service "every member of the household" can go to for their television needs.

Max unites some of the industry's most storied brands under one roof, giving consumers access to a library of programming across WBD's sprawling portfolio: films by Warner Bros., children's content from Cartoon Network, premium shows by HBO, and unscripted programming from HGTV, TLC, Food Network, and many others. Zaslav signaled the package will also at some point be infused with news and sports, given that WBD owns properties such as Turner Sports and CNN.

In effect, WBD announced that it is recreating the bundle, erecting the pillars of a one-stop shop for scripted and unscripted television, movies, news, and sports at a flat monthly rate. The only meaningful difference: instead of it being distributed through cable by a third-party, it will be transmitted direct-to-consumer over the internet.

"It's the one to watch because we have so many of the world's iconic and globally recognized franchises," Zaslav said at the press event, both referencing the service's new tagline and also leaning into the concept of a bundle that marries all the elements of traditional linear television.

"It's our superpower," Zaslav added, describing the package as "streaming's version of must-see TV."

It's a notably different approach from what Disney has done in the streaming space. Insider Intelligence analyst Paul Verna noted to me that the WBD competitor has "resisted the temptation" to combine Disney+, Hulu, and ESPN+. Instead, Verna observed that Disney is "leaning into each brand's core strength," though Disney does offer the ability to purchase the individual services in a bundle.

"WBD has clearly decided on the opposite approach," Verna said.

Which company is ultimately proven to have the more effective strategy remains to be seen. But it goes without saying that Max — the product of the merger between WarnerMedia and Discovery — represents the future for WBD, which has been entrenched in the declining traditional TV business. Zaslav nodded at this during the press event, saying that Max positions the company for the "next century."

For now, Max's pricing will be divided up into three tiers: The least expensive is the $9.99 ad-supported model, while the ad-free version will cost $15.99, matching the price of the existing HBO Max service. Users who want 4K will have to buy the Max "ultimate plan" for $19.99.

The Max service launches May 23.

THE SIDEBAR

WBD's stock slid after the announcement. Shares closed ⬇️ 6%.
Asked on CNBC by Julia Boorstin about some Democratic lawmakers wanting the WarnerMedia-Discovery deal to be re-examined, Zaslav said he thinks the company demonstrated that it is "pro-consumer." WBD, he added, wants to "provide as much great content as we can and make it available in different ways." (CNBC)
Regarding ultimately integrating news and sports, Zaslav said, "You will see news and sports deployed to drive our overall streaming domestically and around the world." Zaslav also vowed, "In a few months we will come back to you on our attack plan." (Deadline)
Zaslav said WBD "hopefully" has NBA rights "for the long term." (CNBC)
WBD vowed that the technology powering Max will improve the experience over HBO Max. (TechCrunch)
WBD streaming head JB Perrette explained why HBO was dropped from the streamer's name: "We all love HBO. And it's a brand that has been built ... to be the edgy ... trendsetter in entertainment for adults. But it's not exactly where parents would most eagerly drop off their kids. (The Verge)
On the content front, WBD announced that another "Game of Thrones" series is en route. (Variety)
"The Big Bang Theory" is also getting a spinoff. (The Wrap)
And a "Harry Potter" series is on the way. (CNN)
Casey Bloys was asked about J.K. Rowling and her anti-trans stance. Bloys said, "Our priority is what's on the screen." (Variety)
Here's the headline atop Lesley Goldberg's piece: "With 'Harry Potter,' 'Big Bang' and 'Thrones,' Warner Bros. Discovery pushes franchises to the Max." (THR)
WBD also announced three new kids-focused projects. (Deadline)
Missed the event? The Verge has a recap with all the news. (The Verge)

——— BELOW THE FOLD ———

CNN Photo Illustration/Michael Nagle/Bloomberg/Getty Images

The Stuff Dreams Are Not Made Of: This is not how Fox News wanted proceedings to go on the eve of jury selection for the $1.6 billion defamation trial brought by Dominion Voting Systems. Delaware Superior Court Judge Eric Davis sanctioned the right-wing talk network and said he will appoint a special master to probe whether it lied to the court and/or withheld key evidence. "I am very concerned… that there have been misrepresentations to the court," Davis said. "This is very serious." CNN's Marshall Cohen, who has been in the Wilmington courthouse all week, has all the details here.

IN THE FOX HOLE

This is really happening: Jury selection in the case will begin on Thursday.
Rupert Murdoch could testify as soon as Monday when opening arguments are scheduled to begin, Jef Feeley reports. (Bloomberg)
Matt Drudge seems to be trying to send a message to Murdoch via this headline on Drudge Report: "SETTLE! SETTLE! SETTLE!" (DRUDGE)
If you have not already done so, drop what you are doing and read Gabe Sherman's juicy Vanity Fair cover story about Murdoch and the succession drama playing out in real life. (Vanity Fair)
Erik Wemple describes the state of affairs as "disaster upon disaster" for Fox News: "These sort of litigation questions are creating a new front for them altogether—and one that I don't think they saw coming." (MSNBC)

THE INFO WARS

CNN Photo Illustration/Charles Dharapak/AP

NPR Abandons Twitter: NPR on Wednesday became the first major news outlet to quit Elon Musk's Twitter, explaining that the org will not be "putting our journalism on platforms that have demonstrated an interest in undermining our credibility and the public's understanding of our editorial independence." The move comes after Musk slapped a "state-affiliated media" warning label on the NPR account, which is usually reserved for state-controlled propaganda outlets. Musk later tweaked the label, but NPR boss John Lansing was not moved. In fact, Lansing told David Folkenflik that even if the labels were to be removed, the company would still remain off the platform. "At this point I have lost my faith in the decision-making at Twitter," Lansing said. "I would need some time to understand whether Twitter can be trusted again." CNN's Clare Duffy has more here.

🔎 Zooming in: Will other news orgs follow suit? The adversarial relationship between Musk and the press does seem untenable long term. Musk behaves like a childish troll who enjoys poking news orgs, so it would be a good bet that he will continue to assail the press in various ways on his platform in the future. One can easily see him, for instance, deciding one day to slap other accounts with labels like "liberal bias." At what point do news orgs choose to cut ties with the site? Will they ever band together and take collective action? I won't hold my breath. Outlets like The Washington Post and The Wall Street Journal continue sending Musk ad dollars, despite the abhorrent manner in which he has treated their outlets and news orgs writ large.

Suing for Surveillance: Nine media outlets are suing for access to January 6 surveillance tapes. The outlets consist of CNN, The Associated Press, The New York Times, Gannett, ProPublica, Advance Publications, E.W. Scripps, and CBS News — all of whom want to get their hands on the 44,000 hours of tape after the footage was handed over to right-wing extremist Tucker Carlson for his Fox News program. "Plaintiffs here are among the many news organizations that have been denied access to the Capitol Surveillance Videos by the Speaker's Office," lawyers for the group of news orgs wrote. CNN's Katelyn Polantz has details here.

IN THE BATTLEFIELD

Fox News will host the first 2024 GOP primary debate in Milwaukee. Chair Ronna McDaniel made the announcement on the right-wing talk channel's morning program, "Fox & Friends." (NYT)
While Fox News will broadcast the debate on cable, the RNC said it will exclusively stream the debate on its Rumble channel. (MMFA)
Tucker Carlson's broadcasting of Donald Trump rambling about various issues drew an average of 3.7 million viewers. (Mediaite)
The GOP-led House Judiciary Committee subpoenaed the FTC's chair for all documents about the agency's Twitter inquiry. (CNN)

THE BUSINESS

CNN Photo Illustration/Lucy Gilmour/Wall Street Journal

Expressing Support for Evan: It has now been two weeks since Russia arrested Wall Street Journal reporter Evan Gershkovich. Staffers at the newspaper on Wednesday marked the occasion by reiterating their demands his release. Colleagues and supporters of Gershkovich again flooded the #IStandWithEvan hashtag. In WSJ's New York newsroom, staffers wore t-shirts featuring the hashtag, with a large image of Gershkovich projected on a screen over the office.

► Meanwhile, the Russian Foreign Ministry said Wednesday that access to Gershkovich by U.S. representatives "is being considered."

First in Reliable | The Code Crew: Vox Media is gearing up for its first Code Conference without Kara Swisher at the helm. The invite-only event, which attracts top tech execs and journalists, will be hosted this year by The Verge Editor-In-Chief Nilay Patel, Platformer founder Casey Newton, and CNBC senior reporter Julia Boorstin. Swisher, who co-founded the news-making conference with Walt Mossberg and hosted it for the past two decades, will still participate in the conference, albeit in a less outsized role. The conference, which will take place September 26 to 27, also moves to the Ritz Carlton, Laguna Niguel.

► "This year, there will be more to discuss than ever," Vox Media boss Jim Bankoff told me. "Code will build on Kara's legacy, and we'll continue to evolve the conference to best serve its audience. We're proud to announce three new hosts, who are also leaders in tech journalism."

IN THE INDUSTRY

Vox Media is spinning off NowThis as an independent media company. "The spinoff allows Vox Media to reap financial benefits from NowThis without having to fund the operating cost of the news site," Benjamin Mullin reported. (NYT)
Digital ad revenue "rose 10.8% to $209.7 billion last year as marketers continued to spend in online channels despite slower economic growth, market uncertainty and mass layoffs at big tech companies," Megan Graham reported. (WSJ)
Tom Jones spoke with The WaPo's Ukraine bureau chief, Isabelle Khurshudyan, about covering Russia's war on the country: "I've seen the best of humanity, the absolute worst of humanity, and sometimes I've seen both within minutes." (Poynter)
The WaPo's opinion section announced it will rename its internship program after the late Fred Hiatt. (WaPo)
RIP: "Alicia C. Shepard, an award-winning media critic who as NPR's ombudsman backed the organization's refusal to label waterboarding as torture, died on April 1 at her home in Arlington, Va. She was 69." (NYT)
RIP: Crisis comms specialist Richard Levick has died at 65. (WaPo)

THE VALLEY

CNN Photo Illustration/Rafael Henrique/SOPA Images/LightRocket/Getty Images

Meta's Morale Morass: Working at Meta is no longer rainbows and sunshine. The NYT's Sheera Frenkel and Mike Isaac reported Wednesday that layoffs, among other factors, "have devastated employee morale at Meta." Per the duo, employees "have created memes and inside jokes about how much time workers have left" before being they are laid off, as well as "griped about reduced bonuses and perks." Read Frenkel and Isaac's story here.

🔎 Zooming in: What is happening at Meta is largely being reflected across Silicon Valley. Tech workers, accustomed to career stability and all sorts of various lifestyle benefits that have for years accompanied their employment, have faced a rude awakening, seeing thousands of their colleagues laid off and perks slashed as tech titans slash costs across the board.

TOO MANY TABS

"A plan to ban TikTok in Montana is a preview for the rest of the country," reports David McCabe. (NYT)
ChatGPT could make its return to Italy in just weeks. (POLITICO)
OpenAI is giving financial rewards to those who report bugs. (The Verge)
Researchers have found ChatGPT can be tweaked to be quite toxic, showing "the perils of today's AI chatbot tech even with mitigations in place to prevent toxic text outputs," Kyle Wiggers writes. (TechCrunch)

CURTAIN CALL

CNN Photo Illustration/BauerGriffin/MediaPunch/IPX/AP

Supporting the WGA: "The British and Canadian writers' unions are demonstrating solidarity with their American counterpart as the threat of a potential strike looms," THR's Katie Kilkenny reported Wednesday. The unions asked members not to work that falls under WGA jurisdiction, if a strike should take place. Kilkenny has more here.

OFF STAGE

French actor Gérard Depardieu has been accused of sexual assault and harassment by 13 women. (LAT)
Ariana DeBose will host the Tony Awards. (NYT)
Mel Gibson was conspicuously absent from the trailer for the "John Wick" franchise's upcoming spinoff, "The Continental." (THR)
Sylvester Stallone signed a first-look deal with Amazon. (Deadline)
Ariana Grande asked that fans be "gentler" when it comes to making remarks about others' physiques. (BBC)
Matthew McConaughey teased his upcoming Apple TV+ comedy series with Woody Harrelson. (Deadline)
"The Ark" has been green lit for a second season on SyFy. (THR)

Thank you for reading! This newsletter was edited by Jon Passantino and produced with the assistance of Liam Reilly. Have feedback? Send us an email here. We will see you back in your inbox tomorrow.