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Monday, August 7, 2023

Hello from Hollywood, where the state of affairs can still be described as hell — and I don't say that because of the typical California heat.

Scroll down for Paramount's earnings, The Atlantic's scathing words for Variety, why Elon Musk is probably not fighting Mark Zuckerberg anytime soon, and Ron DeSantis' NBCU reversal. Plus, can Barbie and Ken dethrone Mario and Luigi? But first, the A1.

THE A1

No Hollywood Ending

CNN Photo Illustration/Mike Blake/Reuters

Hollywood is still mired in a state of anguish.

As the writers' strike careens toward the 100-day mark this week, there is still no end in sight for the historic work stoppage that has brought the movie and television industry to a standstill and wreaked financial havoc on the interconnected web of people who rely on the business to make ends meet.

When news emerged last week that the studios and striking writers were set to meet for the first time since the strike commenced in early May, a ray of hope emerged in Hollywood. It seemed that maybe — just maybe — after a long, hot summer of picketing and trading barbs, hope might be on the horizon.

But it ultimately seemed to be a mirage. Even before the meeting occurred, it was clear that it would not prove to be very fruitful. The Writers Guild of America sent a statement to its members blasting the studios for alleged "calculated disinformation." That prompted an upset Association of Motion Picture and Television Producers, the organization that represents the major studios, to return the favor with a stinging statement of its own.

Which is to say that what started off as a promising indicator of a thaw in the frozen relations concluded with both sides effectively zinging each other in the news media and a continuation of the protracted standoff.

After Friday's rendezvous, the WGA released yet another statement, accusing the AMPTP of "leaking to the press" and stating that no agreement to resume negotiations had been struck because the AMPTP "needed to consult with their member studios before moving forward." The AMPTP chose not to comment.

The fire and brimstone that has overtaken Hollywood is on the path toward making history in the worst possible way. The current standoff has already surpassed the 2007-08 strike, which clocked in at 93 days, and is marching toward the longest writers' strike on record: 154 days in 1988.

Those strikes occurred when the industry was on far more stable ground than it is today. With disruptive streaming services upending the business and the prospect of A.I. threatening to further destabilize — arguably, revolutionize — the media sector, much is at stake during these negotiations. The WGA has made clear that the issues at hand pose an existential threat to the livelihood of writers and it does not intend to "make merely an incremental deal to conclude this strike."

And with 160,000 Hollywood actors, represented by SAG-AFTRA, also battling the studios on a second front over similar concerns, the studios will need to sufficiently satisfy their concerns if they want to climb out of this labor quagmire.

While the two sides are having difficulty coming to terms on such matters, both the WGA and AMPTP agree that the strike has gone on too long. The work stoppage is not only causing financial pain to the striking workers, but it is imposing prolonged hardship on the entire industry. Without production — a major economic engine that extends far beyond Hollywood — countless people who work in support roles are also without income.

But with no negotiating sessions on the books and with the relationship between the two sides defined by mud-slinging, don't hold your breath hoping the situation will be resolved soon. Arguably, passions have been aroused once more, leaving the state of affairs in a worse state than before the summit that dashed Hollywood's hope.

HOLLYWOOD HELL

"Many in the talent community remain baffled that the two sides can't put aside their grievances and make a deal," Jonathan Handel writes. "Hollywood is a dealmaker's town, and ... I understand the frustration. But this complaint rests on an erroneous premise: that collective bargaining is similar to one-on-one dealmaking." (Puck)
"Other than financial pain, what is going to bring these two sides back to the table? Trust would help," Lucas Shaw points out. "No negotiation can happen without trust, and it is evident there is little trust on either side at the moment." (Bloomberg)
"There's money on the line for the screenwriters and actors, yes, but also the connective tissue that shapes culture and society," LZ Granderson argues. (LAT)
One major point of contention is the writers' room: "Dozens of WGA members have told TheWrap over the past three months that ensuring that the writers room remains a major part of the entire production process, as it has been for decades, is an essential part of why they are striking," Jeremy Fuster reports. (The Wrap)
Not even game shows are entirely safe from the effects of the historic strike. "Jeopardy!" will recycle old questions and begin its 40th season with repeat contestants, showrunner Michael Davies says. (Variety)
Also on the Hollywood labor front: Marvel's visual effects crews have voted to unionize. (Variety)

——— BELOW THE FOLD ———

CNN Photo Illustration/Jason Mendez/Getty Images

The Picture at Paramount: Shares in Paramount jumped following the company's Q2 earnings on Monday, up 5% in after-hours trading. The big news to emerge from the quarterly report was that Paramount+'s losses had shrunk to $424 million (from $511 million last quarter) as the company moves toward its goal of profitability and comes down from its peak investment in streaming. THR's Caitlin Huston has more on that here.

► Paramount+ now boasts 61 million worldwide subscribers. The company hopes to increase average revenue per user more than 20% with its U.S. price hike and through the implementation of other measures.

► Partnerships with Paramount? Bob Bakish suggested the company could partner with another media powerhouse to form a streaming alliance. "We've been believers in bundling for a long time," Bakish said. "Bundling has been one of the tried-and-true methods of value creation in media and certainly as we enter the streaming space, bundling is part of our strategy."

► Bakish said Paramount remains hopeful "for a timely resolution" to the dual strikes in Hollywood. But he said the standstill will "significantly" boost free cash flow, telling investors that it will be "higher than previously expected."

► Paramount on Monday also said it had struck an agreement to sell Simon & Schuster to the private equity firm KKR for $1.6 billion in cash.

THE INDUSTRY

Vocal Against Variety: It's been two weeks since Variety published its widely panned story about the behind-the-scenes CNN drama that defined Chris Licht's brief tenure as network boss, but the subjects of the story remain upset. Semafor's Ben Smith reported that The Atlantic Editor-In-Chief Jeffrey Goldberg has been privately pushing Variety co-Editor-In-Chief Ramin Setoodeh to retract claims the story made about Tim Alberta, whose devastating profile of Licht was credited as the CNN chief's death knell.

► "I've asked the editor of Variety to retract those parts of the Tatiana Siegel story that mention The Atlantic and our reporter, Tim Alberta," Goldberg told Smith. "The passages that concern The Atlantic are riddled with errors and falsehoods. Variety has smeared Tim Alberta, who reported and wrote an impeccable story about CNN and Chris Licht. I hope that the editors of Variety take seriously our demand for a retraction. I have not yet received a response. I look forward to receiving one soon."

► Variety declined to comment about the matter on Monday and Goldberg reiterated to me that he is still waiting for a response.

THE FOURTH ESTATE

The NYT is investigating Jane Arraf, its Baghdad bureau chief who has been on leave since earlier this year, to determine whether she misused bureau funds, Max Tani reports. (Semafor)
Another 🍨 from Tani: Vice Media's editor-in-chief, deputy editor, and two of its reporters announced their departure from the company, marking a fresh wave of difficulties for the news outlet. (Semafor)
Lachlan Cartwright has more details on Emily Smith's departure from Page Six. Per Cartwright, New York Post boss Keith Poole chose not to renew the gossip queen's contract. The Post has declined to comment on Smith's exit. (Daily Beast)
"Not giving credit to someone's reporting is never acceptable in journalism": Yashar Ali hits "60 Minutes" Australia for using his Shelly Miscavige Scientology report "without crediting." (The Reset)
Do you feel the synergy? Food Network's Bobby Flay is the next correspondent for CNN's Sunday program, "The Whole Story." The celebrity chef will examine how the pandemic disrupted the restaurant industry, Brian Steinberg reports. (Variety)
Ofcom has launched four new inquiries into GB News after it received complaints that the outlet broke with impartiality rules. (BBC)
Over half of the reporters at France's Journal du Dimanche resigned after a protest they staged earlier this month failed to prevent the appointment of an editor with ties to the far-right. (The Guardian)

THE MARKET

⚾ Play ball! Warner Bros. Discovery "has targeted the beginning of the Major League Baseball playoffs to debut a sports tier for its Max streaming service," Alex Sherman reports, citing sources. (CNBC)
Jeff Zucker's first RedBird IMI media investment will be in launching a nonfiction studio with former Time Studios boss Ian Orefice, Alex Weprin reports. (THR)

MEDIA MOVES

CNN named Tim Carter as executive producer for "CNN Newsroom with Jim Acosta." (CNN)
NBC News hires David Noriega as a national correspondent based in Los Angeles. (X)
The NYT announced Robin Pogrebin will move to the Los Angeles bureau to cover the arts; Adam Nagourney will return to the politics team to help cover the 2024 presidential campaign. (NYT)
CW reupped its president, Dennis Miller, through 2027. (Variety)

THE INFO WARS

CNN Photo Illustration/Scott Olson/Getty Images

Ron's Reversal: Once upon a time, Ron DeSantis breathed fire on legacy newsrooms. In that distant era, or earlier this year, the Florida governor publicly vowed never to do an interview with an NBCU platform unless Andrea Mitchell issued an apology over a question she asked Vice President Kamala Harris about him. Well, guess how that one played out? Mitchell never issued an apology and DeSantis sat down with NBC News just months later for an interview that aired Monday. I wonder what could have possibly changed. 🤔

🔎 Zooming in: One of the top headlines to emerge from the sit-down, conducted by Dasha Burns, was DeSantis' acknowledgement that Donald Trump lost the 2020 election. Of course, DeSantis accepting the truth about the election is news. But the fact that his acknowledgment of reality is making news headlines speaks volumes about the state of the Republican Party.

IN THE BATTLEFIELD

Another embarrassing — yet predictable — legal loss for Donald Trump: A judge dismissed his counter lawsuit against E. Jean Carroll. (CNN)
Say what? Fox News anchor Julie Banderas sparked furor when she stated that Trump's "hatching schemes to stay in office" did not constitute a crime. (Daily Beast)
Steven Crowder's Rumble and YouTube video views have dropped precipitously since the conservative commentator picked a fight with The Daily Wire and was subsequently ensnared in reports that he abused both his family and staff, Jason Campbell reports. (MMFA)
Joe Rogan praised Tucker Carlson, claiming that he's a "no-nonsense guy" and even going as far as to say that he believes the right-wing extremist "could win" the presidential election in 2028. (Mediaite)
"Newsmax will apparently stop at nothing, including crossing clearly delineated ethical boundaries, to supplant Fox News as the GOP's de facto comms shop," Justin Baragona writes. (Daily Beast)
Trafficking survivors who have spoken out to confront issues included in "Sound of Freedom" are being harassed by the film's very vocal fans, Anna Merlan reports. (Vice)
Seattle's Museum of Pop Culture removed JK Rowling from its Harry Potter exhibition over her past transphobic remarks. (Deadline)
🎙️ I spoke with Brian Beutler and Jon Lovett about how news outlets can best deal with some of the bad faith actors on the right who exploit media attention. (Crooked)

THE VALLEY

CNN Photo Illustration/Allison Dinner/EPA-EFE/Shutterstock

The Reddit Revolution Reality: The Reddit revolt is effectively over — and the protesting users did not walk away victorious. "The last major holdouts in the massive protest against Reddit's controversial API pricing have relented, abandoning the so-called 'John Oliver rules' which only allowed posts featuring the beloved TV host in certain dissident subreddits," Gizmodo's Thomas Germain reported. In doing so, the demonstration, at one point so crippling that it hobbled Google's search results, quietly came to a conclusion. Read Germain's full story here.

🔎 Zooming in: "We're at the dawn of a platform shift. As Google tunes its algorithms and incorporates more AI content into its search results, the business model of the entire internet is undergoing an unpredictable change," Germain writes. "Over the long term, Reddit's scrambling efforts at financial security may prove just as futile as the moderators' attempts to fight back."

TOO MANY TABS

Mark Zuckerberg said over the weekend that he is ready to fight Elon Musk "today" and had proposed an August 26 date. But Musk, who has claimed to be lifting weights in preparation for the cage fight, now says he might need surgery before the two can throw down. (CNBC)
Musk also claimed over the weekend that X will pay the legal bills for anyone who has been "unfairly treated" for posting on the social media platform. Of course, serious people shouldn't hold their breath that this will actually come to fruition. (Reuters)
Media companies would be wise to heed Casey Newton's advice: "It's time for the press to take a more skeptical approach to stories about Elon Musk's social media posts." (X)
TikTok is launching a live streaming music competition similar to network talent shows like "The Voice" and "American Idol." (The Verge)
Meta is streamlining its A.I. practices to increase the engagement and monetization of its ads, Ryan Heath and Sara Fischer report. (Axios)
A.I.-powered chatbots continue to suggest pro-anorexia content to users — and tech companies are doing little to mitigate the issue, Geoffrey Fowler reports, citing new research. (WaPo)
Whew! Zoom said it is not stealing user data to train A.I. models. (Variety)

CURTAIN CALL

CNN Photo Illisutration/Warner Bros. Pictures

'Barbillion': Barbie is a billionaire! The Warner Bros. Pictures smash hit hurried past the $1 billion mark over the weekend, making more history as Greta Gerwig became the first female director ever to reach the milestone. The film, which has tremendously outperformed initial projections, now threatens to dethrone the "Super Mario Bros. Movie" for 2023's highest-grossing film at the global box office. (An aside, I just watched "Mario" and thought it was outstanding.) The Nintendo flick earned nearly $1.35 billion, meaning Barbie and Ken will have to earn about $320 million more to match Mario and Luigi.

► "'Barbie' has enough momentum to likely surpass Mario at the global box office before all is said and done," Boxoffice Pro chief analyst Shawn Robbins told me Monday. "On the back of sensational word of mouth and Barbenheimer meme magic, the film has surpassed all expectations as it charts a course toward potentially becoming the top worldwide earner of 2023."

OFF STAGE

"Barbie" will, after all, be released in Saudi Arabia and the UAE despite concerns the film would be banned over censorship disagreements. (THR)
"Oppenheimer" is extending its IMAX 70mm run through the end of August. (Variety)
Angus Cloud's mother said the actor's death was "not intentional." (BBC)
All hail the queen! Beyoncé paid $100,000 to keep the D.C. Metro's trains running after a storm delayed her Sunday concert. (Rolling Stone)
MrBeast is being sued by his ghost kitchen for $100 million. (Variety)
"Succession" and "The Bear" walked away with the top honors at the Television Critics Association's awards. (THR)
"By some metrics, at least, Apple out-HBOs HBO": Ben Lindbergh and Rob Arthur write about the "scripted-series hot streak" AppleTV+ is on. (The Ringer)
"Jersey Shore: Family Vacation" boosted MTV's Thursday primetime rating to its highest number seen in two years. (Deadline)
Paramount+ is planning to introduce five series from South Korea, Latin America, and the U.K. internationally this fall. (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.