Monday, June 5, 2023

It's the start of a new week. Gannett journalists take to the streets, Spotify cuts jobs in podcasting division, Apple announces Vision Pro at WWDC, Showtime pulls "Vice News Tonight" episode, Elon Musk chats with Robert Kennedy Jr., Twitter ad sales plummet, "Spider-Man" swings to success at the box office, and more. But first, the A1.

THE A1

Red Licht Flashing

CNN Photo Illustration/Mario Cantu/Cal Sport Media/AP

Chris Licht started CNN's daily network editorial meeting on Monday by directly addressing the elephant in the room.

"I want to say that I've spent the weekend doing a lot of thinking," Licht told staffers, many of whom had dialed into the meeting specifically to hear from their embattled chief executive.

Employees had not heard from Licht since The Atlantic's Tim Alberta on Friday published a blistering 15,000-word profile on him. The embarrassing piece, which reverberated all weekend throughout the media industry, called into serious question Licht's judgment, his ability to lead the network's staff, and his overall professional capabilities as CNN's top executive.

In a somber tone, Licht on Monday apologized to employees for having distracted from the work of the newsroom, which has broken a string of recent stories related to the probes into Donald Trump. He said that he "should not be in the news, unless it is taking arrows" for the network. And he said that he did not recognize the person portrayed in portions of The Atlantic article.

Most notably, Licht, who described the experience as "tremendously humbling," vowed to push on. He said that he would "fight like hell" to win over the trust of the 3,500-person news organization he leads.

Whether Licht can actually win over his army of journalists, however, is far from certain — especially now that he is attempting to reset relations more than a year into his tenure, having alienated much of the employee base and squandered the good will he had when he took helm of the network.

In the wake of The Atlantic's explosive story, I've spoken with dozens of staffers across the company. There are a wide range of emotions coursing through the halls of CNN. Some staffers are frustrated. Others are angry. Many are sad about the awful state of affairs that has taken hold of an organization they love.

There is one near-universal sentiment, however, that has been communicated to me: Licht has lost the room.

Licht's Monday remarks, according to the people I've spoken with, struck the right tone. He did appear humbled. Staffers could hear the raw emotion in his voice as he spoke. And he invited feedback and offered self-reflection in a way that represented a marked departure from how he has governed in the past.

But Licht, notably, did not apologize for having disparaged CNN's previous journalism, an omission in his remarks that did not go unnoticed by staffers, particularly the network's health unit which has been infuriated by the attacks he leveled against the outlet's Covid-19 coverage. And, overall, the comments did little to move the needle. "Too little, too late," more than one employee said, summarizing the widespread attitude from staffers that I spoke with.

In the eyes of so many at CNN, there isn't anything Licht can do at this point to win over their support. They've hit the wall with him. As one anchor texted me, in reference to Licht's announcement on Monday that he will relocate his office to a newsroom floor at Hudson Yards: "We don't want his office relocated to the 18th floor, we want it relocated out of the building."

Over the last 72 hours, top anchors and correspondents have reached out to David Leavy, CNN's newly installed chief operating officer and, more importantly, the trusted lieutenant of Warner Bros. Discovery boss David Zaslav, to offer their candid thoughts about Licht's leadership. Suffice to say, in these conversations, CNN journalists have not been shy in criticizing Licht.

Zaslav, I'm told, understands the dire state of affairs at his news network. He wouldn't have dispatched his top lieutenant before the publication of The Atlantic piece if he did not believe there was a problem. And the publication of the magazine's article added gasoline to the raging fire. "[Zaslav] had the same reaction that everyone else did to that article," a person familiar with the WBD chief's thinking told me. A second person familiar with Zaslav's thinking said the WBD boss was not happy about The Atlantic story and that he is not blind to what is transpiring at CNN.

Whether CNN's corporate ownership will force a change remains to be seen. Several media executives that I have spoken with in recent days have all said that it is hard to see how Zaslav doesn't do something. WBD put out a generic statement expressing lukewarm support for Licht's leadership on Friday, though that was before Leavy heard from much of the staff.

In the immediate future, I'm told, Leavy is counseling Licht and CNN leadership's primary goal is to stabilize the ship. Licht spent much of Monday having one-on-one conversations with top talent and executives. Beyond repairing relationships with staff, the hope is to get Licht out of the news and to refocus the attention on CNN's newsroom.

That attitude was reflected by Licht in his Monday remarks to employees. "Only the journalism matters," Licht said. "And I will not be distracted from that North Star."

THE SIDEBAR

"Forty-three years ago last week, CNN launched as an ambitious attempt to revolutionize TV news," Alex Weprin writes. "Now it's at the center of the media universe, and looking to redefine itself once again." (THR)
From poor ratings to declining profits, John Koblin and Benjamin Mullin outline all the reasons why CNN "faces a crisis." (NYT)
"Such a slice of humble pie coming from a chief executive is rare and a strong indication of Licht's cloudy future at the network," Stephen Battaglio and Meg James write. (LAT)
While much of the industry is leveling criticism at Licht, Joe Scarborough and Donny Deutsch offered a defense of their friend and former colleague during "Morning Joe." (Mediaite)
Joe Pompeo's conclusion after talking to WBD sources: "I didn't come away from those conversations thinking that he's definitely a goner; it may just be too early to gauge one way or another." (Vanity Fair)
"The deeper story insiders want to know is how David Zaslav got the network in this mess in the first place," Lachlan Cartwright reports. (Daily Beast)
Former CNN boss Jeff Zucker has been "a kind of grievance switchboard for current and former employees of the news network" who are seeking counsel, Benjamin Mullin reports. (NYT)
"Many journalists at the network still compare Licht, unfavorably, to former CNN president Jeff Zucker," notes Jeremy Barr. (WaPo)
"It's tempting to say Licht is entangled in a proxy war between Zucker and Zaslav and shrug at all the rich white guys fighting over a declining asset. But that would be a mistake," Brian Stelter says. "This argument is about the proper function of journalism in a fractured democracy." (NY Mag)

——— BELOW THE FOLD ———

CNN Photo Illustration/Mario Cantu/Cal Sport Media/AP

Protesting Paper Cuts: Hundreds of Gannett journalists on Monday staged a strike during the company's annual shareholder meeting, demanding an expression of no confidence for chief executive Mike Reed. Journalists demonstrated by picketing in local communities, holding signs saying journalists are "worth more." The protests, which occurred at a number of newspapers across the country and was the largest of its kind at Gannett, was scheduled to last one day for most participating newsrooms, though it will continue into a second day for others. Despite the protests, the company's board of directors was elected — a move NewsGuild President Susan DeCarava called a "slap in the face to the hundreds of Gannett journalists who are on strike." Gannett didn't release a new statement on Monday, but previously expressed confidence in Reed's leadership. The AP's Alexandra Olson has more here.

THE BUSINESS

Spotify's 'Strategic' Slashes: The podcasting division at Spotify is feeling more pain. On Monday, the streaming audio giant announced that it will cut approximately 200 jobs, as part of a "strategic realignment" of its podcasting division. The cuts represent a 2% reduction of Spotify's overall workforce and follow precious layoffs that occurred earlier this year. The podcasting cuts mean that Spotify will consolidate Parcast and Gimlet into a "renewed Spotify Studios operation." Variety's Todd Spangler has more here.

🔎 Zooming in: The WSJ's Anne Steele and Will Feuer noted that the layoffs are the "latest sign of struggles" in the podcasting business: "In the rush to the fast-growing medium, investment in many cases has so far outpaced profitability prospects."

IN THE INDUSTRY

Speaking of podcasts: Rachel Maddow's next audio series, which debuts June 12, "will consider the ways in which history repeats itself." (Deadline)
Showtime mysteriously pulled an episode of "Vice News Tonight" that raised questions about Ron DeSantis' role at the Guantanamo Bay prison camp. It was supposed to air May 28. (The Wrap)
"A publishers' trade association — which includes The New York Times, The Washington Post, Disney, and NBCUniversal — is reminding members that A.I. tools built on their archives could break copyright laws," Ryan Barwick reports. (Marketing Brew)
The publisher of the Mirror is pushing back in court against the notion its journalists hacked Prince Harry's phone, saying there is "simply no evidence" to support the allegation. (Press Gazette)
"The end of the network as we know it": Jose Alejandro Bastidas reports on the cuts at CNN en Español. (The Wrap)
NBCU is starting its Olympics marketing push, reminding viewers that the 2024 Paris games are on the horizon. (THR)

MEDIA MOVES

ABC News named Bonnie Mclean director, Los Angeles bureau chief; Dimitrije Stejic director, London bureau; and Andrea Owen executive director, deputy Washington, D.C. bureau chief. (Deadline)
ABC News also announced its 2024 presidential embeds. (TV Newser)

THE VALLEY

CNN Photo Illustration/Apple

Apple's Vision of the Future: Apple on Monday took the wraps off its highly-anticipated mixed-reality headset, the Vision Pro, marking the company's most ambitious product launch in many years. Tim Cook hailed the headset as a "revolutionary product," with the potential to change how users interact with technology, each other, and the world around them. While Meta, Google, and others have largely been unsuccessful at convincing consumers to strap on VR headsets, Apple is hoping to change all of that. But the Vision Pro — which resembles a pair of ski goggles with a battery dangling from a cable — was met with some skepticism that it would follow in the steps of iconic Apple products and quickly become the next consumer hit to transform the world. The launch ultimately failed to excite investors, with the company's stock falling about 1% after the announcement. CNN's Samantha Kelly and Catherine Thorbecke have more here.

► The WSJ's Joanna Stern was among the first to try the new headset: "During my 30-minute demo, it weighed down on my nose and made me a bit nauseous. But wow…the interface and hand gestures are intuitive, 3-D movies are finally making sense."

► TechCrunch's Matthew Panzarino also got a demonstration: "I came away convinced that Apple has delivered nothing less than a genuine leapfrog in capability and execution" of mixed-reality.

► "The Vision Pro is a bellwether for a new era at Apple, one led more by engineering and operations than design," Fast Company's Mark Wilson declares.

► Disney CEO Bob Iger also appeared on stage at the event to announce that Disney+ will be available on the Vision Pro from day one.

TOO MANY TABS

Twitter's ad sales have collapsed 59%, according to an internal review done by The NYT: "Twitter's ad sales staff is concerned that advertisers may be spooked by a rise in hate speech and pornography on the social network," Ryan Mac and Tiffany Hsu report. (NYT)
Four U.S. senators are scrutinizing Twitter's privacy practices and questioning whether the platform under Elon Musk may have flouted consumer protection laws, CNN's Brian Fung scoops. (CNN)
Twitter "failed to prevent dozens of known images of child sexual abuse from being posted on its platform in recent months," Alexa Corse reports, citing Stanford researchers. (WSJ)
"Political posturing:" A federal judge skewered Indiana's lawsuit against TikTok." (AP)
Microsoft Outlook was rocked by a major outage Monday, leaving many companies without working email. (CNN)

THE INFO WARS

CNN Photo Illustration/Reuters

Kibitzing With Kennedy: Elon Musk demonstrated on Monday that he is comfortable providing a large platform to those who spread misinformation. The Twitter owner, who has thrown the social media company into chaos and uncertainty since taking over last year, hosted the conspiracy theorist-turned-longshot presidential candidate Robert F. Kennedy Jr. on a Twitter Spaces for a lengthy chat that exceeded two hours. During the conversation, Kennedy (predictably) spread falsehoods, including blaming gun violence on pharmaceutical drugs and calling Covid-19 a "bioweapons problem." The NYT's Reid Epstein, Alyce McFadden, and Linda Qiu have more.

🔎 Zooming in: "The decision to host Kennedy again highlights, for the second time in as many weeks, Musk's unique potential to shape public opinion through a combination of his own personal celebrity and his private control of a social media megaphone," CNN's Brian Fung writes. "But this time, it also deepens doubts about Musk's claims to open-mindedness — and his willingness to use Twitter as anything other than a tool for his own activism." Read Fung's full piece here.

IN THE BATTLEFIELD

Right-wing media figures "have ramped up their attacks on special counsel Jack Smith, who is in charge of two criminal investigations of former President Donald Trump, following news reports on increasing evidence of Trump's alleged crimes," Zachary Pleat reports. (MMFA)
Alex Griffing wonders whether anyone is going to "retract their baseless claims" that Fox News leaked the Tucker Carlson tapes, noting pundits like Megyn Kelly baselessly accused the network's public relations department of doing so. (Mediaite)
Charlamagne Tha God says YouTube should be held legally liable for allowing election lies to spread on its platform, after the social media company softened its stance on the matter: "I cannot wait until YouTube starts getting named in a bunch of these lawsuits." (Mediaite)

CURTAIN CALL

CNN Photo Illustration/Sony Pictures Animation

Spider-Man's Success: It's the second-best domestic box office debut of 2023. "Spider-Man: Across the Spider-Verse" swung to major success over the weekend, catching $120.5 million in its web and proving that the box office is capable of attracting audiences for the right films. Meanwhile, "The Little Mermaid" fell to the No. 2 spot, dropping 58% from opening weekend to add $40.6 million to its haul. CNBC's Sarah Whitten has more here.

OFF STAGE

SAG-AFTRA members have approved a strike authorization. (LAT)
HBO's much-anticipated "The Idol" amassed 913,000 viewers for its Sunday premiere. (The Wrap)
Tyler Coates wonders whether dramas not named "Succession" happen to "stand a chance" this year at the Emmys. (THR)
Jennifer Coolidge wants Tanya's husband to die a gruesome death in "The White Lotus" season three: "I think he should, I don't know, end up in a meat-grinding machine." (Variety)
Fall Out Boy and Hayley Williams will be featured on Taylor Swift's version of her "Speak Now" album. (Variety)
ABC is working on rebooting the once popular "Extreme Makeover: Home Edition." (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.