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Wednesday, September 20, 2023

Hollywood bosses meet with writers, Michael Wolff publishes "The Fall" excerpt, Project Veritas reportedly suspends operations, prosecutor shoots down Ray Epps conspiracies, authors sue OpenAI, Taylor Swift reveals tracks from "the vault," Selena Gomez talks about the "big responsibility" of her massive Instagram, and more. But first, the A1.

THE A1

Streaming's Slam Dunk

CNN Photo Illustration/Jeremy Freeman/Warner Bros. Discovery Sports

The cable bundle is losing its biggest edge over the streaming competition: live sports.

Warner Bros. Discovery announced this week that it will make its live sports offerings — which include MLB, NHL, NBA, NCAA Men's March Madness, and U.S. Soccer events — available in the Max app, at first for free and then for an additional $9.99 a month. Amazon has the rights to "Thursday Night Football," plus the new Black Friday game. And Apple has the rights to Major League Soccer and some Friday night MLB games.

For years, live sports and news have been the cornerstone of the immutable cable bundle. Yes, subscribers can binge seemingly limitless libraries of movies and television shows on the streamers, but for live appointment viewing events, a cable package has been a requirement. That advantage, however, is rapidly evaporating.

Live news, of course, has never been the big draw. But it has been an attraction — one that is also no longer exclusive to linear television. Max is set to launch a live news channel next week, with the birth of CNN Max, the first cable news network to offer a 24/7 live streaming news service. And the big broadcast news networks — NBC News, ABC News, and CBS News — all operate streaming options for those who wish to download their apps.

With live news and sports now making their way to streaming, piece by piece, the Jenga puzzle of the cable bundle has started to destabilize. The last major block holding the wobbly tower upright is arguably ESPN, which is working on its own direct-to-consumer platform that will stream its flagship channel. Once ESPN is available directly to consumers, the decades-long grip of the traditional cable bundle will surely fade considerably.

"Adding sports to streaming will exasperate cord cutting," Michael Pachter, an analyst at Wedbush Securities, told me on Wednesday.

Pachter said that the major content providers are "screwing themselves" by making such programming available to consumers through their streaming platforms, arguing that they are transitioning to a less profitable business model that will bring pain to the entire industry.

"Media is going to make less money," Pachter said, predicting that the moves would lead to deeper budget cuts and more labor disputes.

Ross Benes, an analyst at Insider Intelligence, said the "doom loops that have haunted cable TV for years are coming full circle."

"The Charter-Disney standoff, Diamond Sports bankruptcy, Warner Bros. Discovery offering its sports on its streaming service, and ESPN planning to go straight to consumers in a big way all point to the same trend — the collapse of traditional distribution for sports and streaming's inevitable rise," Benes said.

Benes cautioned that the demise of traditional linear television won't transpire overnight, noting older viewers are "too habituated" with it to cut the cord. But he noted that the bundle will get more expensive, "effectively punishing loyal subscribers who stuck with them." Such trends, he added, "cannot sustain indefinitely."

"What will result is a confusing mess where there will soon be a streaming option for nearly every major sporting event," Benes predicted. "It will become easier, and at least initially cheaper, to watch your favorite sport or team á la carte. But for sports superfans who want to watch all the leagues, sports viewing will become even more expensive than before."

Rich Greenfield, analyst at LightShed Partners, offered an alternative view. Greenfield said he believed that the fracturing of content across the media landscape felt "almost designed to make you want to stay in the bundle." He argued it is a better consumer experience to have access to a deep library of live news and sports than to attempt to "piece things together" with a plethora of streaming services.

Greenfield suggested that the Disney-Charter model, in which cable customers also gain access to an advertising-supported streamer with their traditional television subscription, could actually be the future.

"It feels," Greenfield said, "like we are at the start where streaming just gets included."

——— BELOW THE FOLD ———

CNN Photo Illustration/Getty Images

On the Write Path: Is Hollywood on the brink of a possible breakthrough? The studios and writers met Wednesday for negotiations as the deadline to hammer out a deal with the hope of salvaging the winter portion of a television season nears. In the room on Wednesday, I'm told, were the big four studio bosses: David Zaslav, Bob Iger, Ted Sarandos, and Donna Langley. After the meeting, both sides issued a joint statement, only saying, "The WGA and AMPTP met for bargaining today and will meet again tomorrow." Neither side is saying anything further. But the fact that the two sides — which at times have rebuked each other for comments to the media — issued a joint statement says volumes. I'm separately told that the Wednesday talks left people "feeling encouraged," and that the big four studio bosses will rejoin the talks on Thursday. All good signs that the negotiations are headed in the right direction.

HOLLYWOOD HELL

Peter Kiefer writes about how President Joe Biden has "avoided Hollywood and its coffers for months at a critical moment." (The Ankler)
Adriane Quinlan reports on how the strikes have forced prop makers to adapt to new jobs. (Curbed)
Picketers targeted the "Dancing With the Stars" rehearsal. (Deadline)

THE INDUSTRY

THE MARKET

Kim Masters asks, "Does CAA have a succession problem?" (THR)
Georg Szalai reports on how the Disney theme parks are "in focus" after the company's investor event. (THR)

THE FOURTH ESTATE

Dylan Byers reports on incoming CNN boss Mark Thompson's "message" and the backlash "Meet the Press" is facing after its Donald Trump interview. (Puck)
"CNN is returning to its roots": Daniel Wine writes about how CNN is heading back to Techwood. (Inside CNN)
A new media company is on the block. "Million Dollar Listing Los Angeles" star Josh Flagg and a group are starting an outlet "catering to the real-estate industry and its devotees," Megan Graham reports. (WSJ)
The Guardian launched a digital Europe edition that adopts "a European lens on world issues." (The Guardian)
Substack redesigned its app to make the platform feel more like a social media platform. (The Verge)
As newsrooms increasingly introduce A.I. into their daily practices, Ina Fried offers advice on how to best do so. (Axios)
First in Reliable | The New Yorker is launching its first podcast devoted to arts and culture. The weekly podcast, "Critics at Large," will post Thursdays and be hosted by Vinson Cunningham, Naomi Fry, and Alexandra Schwartz. (New Yorker)

MEDIA MOVES

First in Reliable | Early stage A.I. investor Merantix hired Steven Perlberg to run communications.
The NYT promoted Jaclyn Reiss to an assistant editor for targeted email and promoted Brian Rosenthal to a reporter on the investigations desk. (NYT/NYT)

THE INFO WARS

CNN Photo Illustration/Kent Nishimura/Los Angeles Times/Getty Images

The Eppside Down: Ray Epps, the Arizona man at the center of far-right conspiracy theories amplified by Fox News, pleaded guilty Wednesday to a misdemeanor charge for his actions during the January 6 insurrection. Prosecutor Michael Gordon asked to make a statement on the record, saying during the hearing that Epps "was not, before, during, or after" January 6 a confidential human source or undercover government agent, swatting down the bogus claims at the heart of Epps' defamation lawsuit against Fox News and Tucker Carlson. CNN's Holmes Lybrand has more here.

🔎 Zooming in: Following the hearing, Epps' lawyer, Michael Teter, issued a blistering statement, calling the plea agreement, "powerful evidence of the absurdity of Fox News's and Tucker Carlson's lies that sought to turn Ray into a scapegoat for January 6. Had Ray been charged earlier, Fox News would have called him a hero and political prisoner. Instead, Fox News spread falsehoods about Ray that have cost him his livelihood and safety."

IN THE BATTLEFIELD

🚨 The right-wing ambush video organization Project Veritas, which has been in a downward spiral since it ousted founder James O'Keefe, "suspended all operations on Wednesday after another round of layoffs," Diane Falzone reports. (Mediaite)
Michael Wolff published the first excerpt of his book in New York magazine: "Breaking Up Is Hard to Do: Rupert Murdoch didn't want to dump his ratings leader and favorite Fox host. But was Tucker Carlson giving him a choice?" (NY Mag)
But as we cautioned yesterday, Wolff has a history of publishing inaccuracies and anecdotes later denied by key subjects. For instance, Carlson told Bryan Metzger one of the book's claims, that Ron DeSantis got physical with his dog, is "absurd." A DeSantis spokesperson added that it is "false." (Insider)
Wolff to Joe Pompeo on getting nervous ahead of the book publishing: "I mean, the logical thing to think about is, what are the Murdochs going to do? How are they going to respond? I haven't thought about that until now, which is strange because I've been through this before." (Vanity Fair)
The $2.7 billion Smartmatic case against Fox News is "never going to be Dominion," a Fox lawyer said at a court hearing Wednesday. (Law360)
Joe Biden's campaign "is overhauling its strategy to fight misinformation on social media in the 2024 race," Rebecca Kern reports. (POLITICO)
Donald Trump Jr.'s account on X was hacked. (CNN)
Republicans are reportedly courting former ESPN host Sage Steele as a candidate for Connecticut's 5th Congressional District. (Mediaite)

BRAND BOXED IN

Channel 4 boss Alex Mahon said the allegations against Russell Brand "are horrendous," adding the alleged behavior described in the stories as "disgusting and saddening." (Variety)
Sponsors are dropping Brand amid the assault allegations, Katie Deighton reports. (WSJ)
While Brand is temporarily demonetized on YouTube, an executive for the video sharing giant said there are no plans to outright ban him. (Variety)

THE VALLEY

Jakub Porzycki/NurPhoto/Getty Images

Throwing the Book at 'Em: More than a dozen authors, including household names such as John Grisham and Elin Hilderbrand, have filed a lawsuit against ChatGPT-creator OpenAI, alleging copyright infringement. "The success and profitability of OpenAI are predicated on mass copyright infringement without a word of permission from or a nickel of compensation to copyright owners," the lawsuit said, echoing the claims made by comedian Sarah Silverman in her own case against the company. A spokesperson for OpenAI did not have a comment. The NYT's Alexandra Alter and Elizabeth A. Harris have more here.

TOO MANY TABS

Kevin Roose explains how Google's Bard "just got more powerful." Roose cautions, however, that the A.I. bot is "still erratic." (NYT)
What could go wrong? Amazon is introducing experimental A.I. tools to its Alexa-enabled Echo smart speakers, the same device that once told a 10-year-old girl to touch a live plug with a penny. (WaPo)
Speaking of experimental, Elon Musk's Neuralink is looking for volunteers for its brain-computer interface, which was cleared by the FDA for human clinical trials. (CNN)
LimeWire is back! But, instead of being the place to download albums with missing track titles, it's all about A.I., Ina Fried reports. (Axios)
Kaya Yurieff's latest: Meta Verified is working "out the kinks in public." (The Info)
Britain's Home Office launched a campaign that seeks to delay Meta's plan to introduce encrypted messaging across its various platforms, saying it will allow child predators to "hide in the dark." (The Guardian)

CURTAIN CALL

CNN Photo Illustration/Kevin Winter/TAS23/Getty Images

How You Get the Girl Tracks: One day after she sort of broke Google with a sleuthing game, Taylor Swift has revealed the titles to "1989 (Taylor's Version)." The new offering will include Swift's version of the songs off the original album, plus new tracks "from the vault." Those tracks include, "Say Don't Go," Now That We Don't Talk," and "Slut!" The A/V Club's Mary Kate Carr has more here.

OFF STAGE

Anther talk show is pausing production, but not because of the strikes. Sherri Shepherd announced Wednesday that "Sherri" will suspend new episodes because she had tested positive for Covid. (The Wrap)
Sylvester Stallone and his "Expendables" are looking to make around $15 million domestically during the opening weekend of the fourth installment of the franchise. (Deadline)
Selena Gomez dishes on her Instagram following to Alejandra Molina, saying it is a "big responsibility." (LAT)
Lionsgate released the first trailer for the "Hunger Games" prequel, "The Ballad of Songbirds and Snakes." (YouTube)
The trailer for "In The Fire," starring Amber Heard, is out. (THR)
Did you ever watch "Ghosted"? I tried. It was bad, as the critics promised. Now Chris Evans is conceding, "We could have been better." (GQ)
"Slow Horses" will debut its third season on AppleTV+ on December 1. (Deadline)
Sufjan Stevens was hospitalized and is receiving intensive treatment for Guillain-Barré Syndrome, which left him unable to walk. (Pitchfork)
Mikey O'Connell profiled Lana Del Rey. (THR)
A judge ruled that Netflix must face a defamation lawsuit by Linda Fairstein, a best-selling author and former Manhattan prosecutor, for its depiction of her in a 2019 crime drama. (Reuters)

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. You can follow us on Instagram and Threads. We will see you back in your inbox tomorrow.