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Wednesday, January 17, 2024

Sam Altman downplays fears about A.I., Condé Nast folds Pitchfork into GQ, Amazon invests in Diamond Sports Group, CNN cancels its planned New Hampshire debate, Sheryl Sandberg exits Meta's board, YouTube lays off dozens of staffers, Ariana Grande announces her first album in four years, and so much more. But first, the A1.

THE A1

The Thompson Transformation

CNN Photo Illustration/Ronen Tivony/SOPA Images/LightRocket/Getty Images

Mark Thompson, on his 100th day as CNN's new leader, sent his 4,000-person strong workforce a 2,300-word memo that said both a lot and very little at the same time.

Having spent his first few months on the job engaging in a listening tour that took him to bureaus across the world, Thompson said he was ready to formally unveil his roadmap for the iconic news organization's future.

Thompson began his manifesto by referencing how CNN's founder, Ted Turner, revolutionized the news by introducing a 24/7 live-feed on cable television. Thompson told his army of journalists that "technology and audiences are on the move again" and wrote bluntly about how linear television is dying at a brisk pace while digital products balloon in size. CNN, he candidly acknowledged, "has been slow to respond to the challenge," having morphed over the years from a "scrappy outsider" to a "tenured incumbent."

"We need to recapture some of the swagger and innovation of the early CNN," Thompson wrote as he laid out the formidable challenges facing the entire media industry. "It's time for a new revolution."

The revolution Thompson spoke of was, unsurprisingly, about transitioning CNN from a legacy television-focused outlet into a multi-platform destination for news and news-adjacent content, giving the organization not only different ways to reach audiences, but perhaps more importantly diversifying its business model, which is in grave jeopardy as the cable bundle collapses. Thompson said CNN "will still stand for the same things – video-led breaking news, delivered as it happens with honesty and insight – but with greater flexibility about the how and multiple new forms of monetization to complement existing revenues."

"We need to organize around the future, not the past," Thompson declared, though he went out of his way to send love to the television teams, describing the division as "one of the jewels in our crown" that will "play a central and vital role in CNN's success as far out as the eye can see."

To help steer the ship, the newly minted CNN boss announced his leadership team, keeping the quadrumvirate of seasoned hands who led the organization after the firing of former CNN chief Chris Licht in place. That group, colloquially known internally as "The Quad," is comprised of Virginia Moseley, executive vice president of editorial; Amy Entelis, executive vice president of talent; Eric Sherling, executive vice president of programming; and David Leavy, chief operating officer.

In other words, Thompson opted out of shaking up the c-suite ranks, which had been a topic speculated on inside the company for some time. Instead he signaled a vote of confidence in "The Quad" by empowering them with expanded responsibilities. Most notably, Thompson named Moseley as the network's first executive editor, announcing he will unify CNN's domestic and international operations under one roof, reporting to her. Mike McCarthy, who has for years led CNN International, will become managing editor of CNN, reporting to Moseley, Thompson said.

Instead of subtracting from "The Quad," Thompson decided to grow it to a quintet by formally announcing that Alex MacCallum will once again join forces with him — and CNN — as the network's executive vice president of digital products. Thompson said MacCallum, who worked closely with him as they modernized The New York Times, will lead a team "focused on developing the products and the subscription and other relationships with users that will make CNN once again indispensable to younger, as well as older audiences, and secure our economics into the future."

Outside the personnel moves, there was little granular detail in Thompson's manifesto about transforming the organization into the digital behemoth he spoke of. Those looking for specifics will have surely been disappointed. The memo was a broad look at CNN's past, its present, and where it needs to go in the future to continue to thrive as a world class news organization. But how it finds a way to arrive at its final destination and what it looks like after it touches down there were left up in the air.

That is something Thompson, himself, acknowledged. Thompson said he wanted to give MacCallum, who will officially join CNN in March, "time to develop her plans after her arrival," granting that would mean "it will be a while before we can share details of the new roadmap."

Regardless of what that final roadmap looks like, it will unquestionably result in organizational changes, which will translate into cuts in certain areas. While Thompson didn't explicitly say this himself, he telegraphed as much in his memo. For instance, he wrote, "Expect to see us also looking hard at how best to put our TV production machine on a sustainable footing." (Thompson stressed he wanted to do so "without weakening" the product).

How many cuts will be required from parts of the organization to grow the others remains to be seen. The one certainty the CNN chief signaled to staffers is that, as the organization embarks on a journey of necessary metamorphosis, they must become acquainted with change.

"Change is essential if we're to secure this great news company's future," Thompson wrote. "It brings uncertainty – that I'm afraid is inevitable – but in my experience, it's also often rich in personal and shared opportunity. As we enter this new chapter in CNN's storied history, I'd encourage you to take a leaf out of Ted Turner's book. Let's build with confidence. Let's fulfill our mission. Let's learn some new tricks. Let's look after each other. Let's have some fun."

ADDITIONAL NOTES

Dylan Byers' assessment: "In an industry clinging to tradition, it is commendable that Thompson was willing to say this much out loud, and to state clearly that CNN's challenges won't be solved on the linear battlefield." (Puck)
Notably missing from Thompson's memo was his philosophy on editorial matters. While he has spoken internally to staffers about some of his preferences, Thompson has yet to really dive into some of the messy issues facing American newsrooms ahead of the 2024 election in a public forum or way.
It does seem clear, however, that Thompson believes CNN should take Donald Trump live, despite the MAGA leader's propensity to lie and mislead at a voracious pace. CNN was the only network Wednesday that cut into Trump's post-court remarks, airing the GOP frontrunner attack Judge Lewis Kaplan as a "nasty man" and a "radical Trump hater," assail E. Jean Carroll, as well as complain about supposed "election interference." That was followed by fact-checking from Jake Tapper and Elie Honig, the latter of whom stressed Kaplan operates without a partisan bent.
In his memo, Thompson voiced support for CNN's prime time lineup, which has had enormous difficulty gaining traction in the ratings, describing the bloc of shows as "promising" and saying it "still needs time to bed in, even as we look for other opportunities to improve audience flow and boost performance elsewhere in the schedule."
Thompson gave his first on-the-record interview this week to The WSJ's Isabella Simonetti where he was also asked about CNN's poor ratings. Thompson responded, "There are some viewers out there who simply don't want to hear the other side, don't want to hear it, and feel much more comfortable in an environment where typically they're hearing people whose opinions are very close to their own."
Speaking to Simonetti, Thompson poured cold water on the notion he plans to launch premium digital subscription products around verticals such as travel and health. "I think you might want to start with news," he said.
Thompson wrote in his memo he plans to "reinvest" in CNN Originals, a team led by Amy Entelis that was decimated in cuts under Chris Licht's leadership. The division historically produced award-winning works such as "Navalny" and "Searching for Italy." At what level will Thompson reinvest in this team? Thompson didn't say.
Thompson said in his memo CNN needs "to engage with GenAI and other emergent technologies." Thus far, CNN has not publicly staked out a position on this generationally defining technology. But the network has engaged in talks with companies about potentially licensing its content.
Thompson announced that he had promoted Emily Kuhn to senior vice president of communications, where she will oversee the network's global public relations department.

——— BELOW THE FOLD ———

CNN Photo Illustration/Chris Ratcliffe/Bloomberg/Getty Images

Altman Dismisses A.I. Apocalypse: Speaking at Davos on Wednesday, OpenAI boss Sam Altman and Microsoft chief Satya Nadella dismissed the notion that generative A.I. could lead to apocalyptic scenarios in the near future. "The world had a two-week freakout with GPT4," Altman said. "And now, people are like, 'Why is it so slow?'" Altman added, "People will go on with their lives. We are making a tool that is impressive, but humans are going to do their human things." For his part, Nadella said the "magical moment" for A.I. is near as the world begins to "grab onto" the technology and implement it. But he argued the results will be a net benefit for workers. The WSJ's Sam Schechner and Jamie Heller have more here.

► That said, Altman acknowledged to Axios' Ina Fried that ChatGPT will evolve in ways that "make a lot of people uncomfortable."

THE INDUSTRY

Pain at Pitchfork: The "most trusted voice in music" was left singing the blues Wednesday. Condé Nast announced that it would move Pitchfork into the GQ fold — a decision that resulted in some layoffs at the iconic music publication. In a memo, Condé boss Anna Wintour said the restructuring came after "a careful evaluation of Pitchfork's performance." Among the casualties of the organizational changes was the outlet's editor in chief, Puja Patel, Sopan Deb reported. Deb has more here.

THE FOURTH ESTATE

"Kaitlan Collins is in her prime": Wendy Kaur sat down with the CNN anchor and explored her meteoric rise to prime time. (Elle)
The Information revamped its website, unveiling a new logo and offering a fresh look for 2024. (The Information)
POLITICO launched a feature that allows its paying subscribers to quickly review federal bills using A.I.-generated summaries. (POLITICO)
Variety boasted that it was the No. 1 most trafficked entertainment trade in 2023. (Variety)

IN THE MARKET

Amazon will purchase a minority stake in Diamond Sports Group, creating "a framework for a reorganization plan" that would allow for the RSN owner to emerge from bankruptcy and continue operations. Parent company Sinclair, meanwhile, will pay $495 million to settle outstanding litigation. The deal means that, at some point, fans will be able to access Diamond content on Prime Video. (WSJ)
Amazon's MGM Studios inked a deal with Wonder Project, the independent studio that "develop[s] series and films rooted in spirituality" as Prime Video looks to corner the faith-based content market. (THR)
The studio also signed a multi-year first look deal with Tastemade to put out unscripted lifestyle content. (Variety)
Disney and 20th Century Studios settled a lawsuit with TSG Entertainment that alleged breach of contract. (THR)

MEDIA MOVES

The Ankler named Manori Ravindran as London correspondent. (The Ankler)
BBC News named Paul Royall its permanent executive news editor. (Press Gazette)
The NYT hired Austin Elias-de Jesus and Natasha Rodriguez as members of its editing residency. (NYT)

THE INFO WARS

IN THE BATTLEFIELD

No more debates? CNN confirmed that it has nixed its planned New Hampshire GOP primary debate, given that Nikki Haley opted not to participate unless Donald Trump also did. The network will host a town hall with Haley on Thursday instead. (POLITICO)
Trump continues to signal he will target news organizations should he regain power, with CNN and MSNBC being his latest targets. (The Hill)
Fox News already appears to be laying the groundwork to deny the 2024 presidential election, Matt Gertz argues. (MMFA)
Tucker Carlson continued his descent into the fever swamps, saying the Democratic Party won't drop Vice President Kamala Harris from its national ticket given she's a member of "the new master race." (Mediaite)
"Controlling the narrative": Miranda Green reports on how "an Alabama utility wields influence by financing the news." (The Guardian)
Michelle Fields and Jamie Weinstein have launched a production company with iHeartRadio. Its first project? The Chris Moody-hosted "Finding Matt Drudge" podcast. (Apple Podcasts)

THE VALLEY

CNN Photo Illustration/Eric Risberg/AP

Sandberg Says Sayonara: The divorce is becoming more official. Sheryl Sandberg — once the most powerful executive at Meta, outside Mark Zuckerberg — is leaving the company's board of directors. In a Facebook post (why not Threads?) announcing the move, Sandberg thanked Zuckerberg and said it "feels like the right time to step away." Zuckerberg, for his part, said he was "grateful" for her "unwavering commitment" to the company. CNN's Clare Duffy has more here.

TOO MANY TABS

✂️ Cuts, cuts, cuts: YouTube said Wednesday it will slash its workforce by 100 jobs as layoffs roiling Google continue. (NYT)
Google will amend the way its online search results appear in a bid to offer more sites prominence — and comply with E.U. rules. (Reuters)
A new study found that despite promising it would delete location data for users visiting abortion clinics, Google essentially failed to do so, Johana Bhuiyan reports. (The Guardian)
Google's DeepMind A.I. is getting close to being able to match the world's smartest students when it comes to solving geometry problems, Michael Peel reports, citing new research. (FT)
Elon Musk's X received a money transmitter license in Virginia as it continues to push toward launching some sort of peer-to-peer payment system. (Reuters)
ByteDance "has quietly launched four new generative A.I. apps for users outside of China," Emily Baker-White reports, adding that they have millions of downloads and are powered by OpenAI's tech. (Forbes)
How about them apples? Netflix won't launch an app for Apple's Vision Pro headset, instead saying that users can watch its content online, Mark Gurman reports. (Bloomberg)

CURTAIN CALL

CNN Photo Illustraton/Kevin Mazur/Getty Images

Good Decisions: After a four-year hiatus, Ariana Grande is set to drop a new album. The pop star announced Wednesday that her seventh album, titled "Eternal Sunshine," will be unleashed upon the public March 8. The news isn't entirely a surprise. Grande has been dropping hints and she released a new single, "Yes, And?," last week. Pitchfork's Jazz Monroe has more.

OFF STAGE

Lorne Michaels, the creator of "Saturday Night Live," says Tina Fay "could easily" run the show following his departure. (THR)
With the rights to Batman and Superman set to expire in a decade, Tatiana Siegel and Gene Maddaus ask how D.C. will protect its iconic superheroes. (Variety)
Netflix revealed the cast for the sixth season of its reality dating show, "Love Is Blind." (Variety)
MGM+ added Forest Whitaker to the cast of "Emperor of Ocean Park." (THR)
A newly remastered black-and-white version of "Godzilla Minus One" will hit theaters for a one-week special run. (THR)
Apple TV+ put out the trailer for "The New Look," its upcoming drama about Christian Dior and Coco Chanel. (YouTube)

Thank you for reading! This newsletter was edited by Rob McLean as Jon Passantino is off. It was produced with the assistance of Liam Reilly. Have feedback? Send us an email. You can follow us on Instagram, Threads, and LinkedIn. We will see you back in your inbox tomorrow.