Too Much TV: Your TV Talking Points For Thursday, August 8th, 2024

The dumpster fire that is Paramount Global

Here's everything you need to know about the world of television for Thursday, August 8th, 2024:

PRODUCTION NOTES
I mentioned in yesterday's letter that I would posting my long "Building Your Perfect $50 TV Bundle" piece today, but I had to put that off until tomorrow. It was an unexpectedly busy day, which honestly is a mixed blessing. 

THE DUMPSTER FIRE THAT IS PARAMOUNT GLOBAL
A day after Warner Bros Discovery announced it was taking a massive $11.2 billion in write-downs & charges in Q2, Paramount Global announced today it was taking a $5.98 billion write-down of its cable networks ahead of the Skydance deal. That charge-off was meant to bring the book value of the company's cable networks closer to the actual market value. Which coincidentally makes it easier to sell off the networks once Skydance takes control.

Paramount+ global subscribers dropped 2.8 million in the quarter to 68 million. The company attributed much of the dip to the loss of a hard bundle deal in South Korea. Although it didn't reveal the amount of that total drop that came from South Korea.

Another thing Paramount Global has in common with Warner Bros. Discovery is a substantial drop in licensing revenue. Licensing and other revenue plunged 48%, led by a lower volume of licensing in the secondary market. Which is similar to the same explanation given by WBD for its licensing revenue drop.

This might point to a hitch in the argument that both WBD and Paramount Global should become content "arms merchants." There are a limited number of possible customers for high-end, expensive content and the content licensing fees and ad revenue for the proliferation of FAST channels continues to be relatively modest. So the future of being an "arms merchant" might not be as glowing as some analysts suggest.

But the biggest news out of the earning call is that co-CEO Chris McCarthy confirmed the media company plans to cut its U.S.-based workforce by about 15%, which translates to around 2,000 jobs. Marketing, communications and Paramount+ are areas that are expected to feel the brunt of the cuts. Several people told me the rumor is that as much as half of Paramount Global's overall marketing team is in danger of losing their jobs.

And while marketing and communications teams are a favorite target for layoffs in the media business, it's a move that has severe long-term consequences. PR and marketing is a core function for any media company, whether you are talking about theatrical releases or television. Cutting back on original content while making even larger cuts to the marketing side of the business does reduce expenses. But it is the media business equivalent of eating your seed corn. It's impossible to grow your business long-term if you aren't investing in the things that allow you to retain customers and promote your content. 

As was the case yesterday with Warner Bros. Discovery, I find myself increasingly pessimistic about the future of Paramount Global. I don't see the company making the moves necessary to fix its struggling business model. Instead, it's cutting costs in hopes that will allow it to eventually make money with a reduced revenue flow. 

TWEET OF THE DAY

THERE'S OLD AND THEN THERE'S CABLE TV NEWS
The median age of viewers watching cable news is old. Even for linear television. Depending on the network, the range is somewhere between 65 and 70. Which explains in part why most of the commercials focus on various medicines, arthritis supplements and easy ways to buy gold.

And the average age makes sense, because younger viewers tend to get much of their news from other sources. And the structure of cable news also makes it less attractive to viewers who are more engaged online. The top stories tend to be repeated every quarter hour and much of the content tends to focus on so-called "insider" access rather than a wider range of viewpoints and knowledge bases.

I watched a segment last night on MSNBC that managed to perfectly encapsulate precisely why the network has a median age of 69. Guest anchor Ali Velshi was interviewing Politico's Jonathan Martin and they were discussing the Kamala Harris campaign and their success creating social media memes. Velshi mentioned that he did know that the campaign was "Brat" and that the campaign's new camo-style hat was similar to one sold by the pop singer Chappell Roan. He even had a graphic to highlight the two trends. Then he and Martin both joked about the fact they had no idea what "Brat" meant and had never even heard of Chappell Roan.

Which is close to cable TV news malpractice. I can almost guarantee I am older than both of these guys and not only do I understand the "Brat" reference, I've listened to Roan's music. It's not my thing, but she's not some trendy unknown pop singer. Earlier this year she had five songs on the Top 100 single chart and she's mainstream enough to have received the softball NY Times profile. 

So highlighting that you have never heard of her isn't something to be proud of. And I certainly wouldn't go out of my way to point it to viewers. It's a bit like producing a segment entitled "I'm Clueless And I'm Proud."

No wonder younger viewers aren't tuning in.

ODDS AND SODS
* Season two of the Keri Russell drama The Diplomat will premiere Thursday, October 31st on Netflix.

* An all-new season of OWN's Love & Marriage: Detroit will premiere Saturday, September 7th, following the season finale of Love & Marriage: Huntsville.

WHAT'S NEW TONIGHT AND TOMORROW

THURSDAY, AUGUST 8TH:
* Are You Sure? Series Premiere (Disney+)
* Dying For Revenge (Britbox)
* Kennedy, Sinatra, And The Mafia (Sundance Now)
* Kold x Windy (ALLBLK)
* Mr. Throwback Series Premiere (Peacock)
* One Fast Move (Prime Video)
* Shahmaran (Netflix)
* Stepmom From Hell (LMN)
* Taken Together: Who Killed Lyric And Elizabeth? (Max)
* The Mallorca Files (Prime Video)
* The Shakedown (Prime Video)
* The Umbrella Academy Season Premiere (Netflix)
* Tyler Perry's Ruthless Season Five Premiere (BET+)

FRIDAY, AUGUST 9TH:
* Blue Ribbon Baking Championship Series Premiere (Netflix)
* Inside The Mind Of A Dog (Netflix)
* Mission: Cross (Netflix)
* Nadie Nos Va a Extrañar Series Premiere (Prime Video)
* Phir Aayi Hasseen Dillruba (Netflix)
* Tales Of The Teenage Mutant Ninja Turtles Series Premiere (Paramount+)
* The Braxtons Season Premiere (WE tv)
* The Instigators (Apple TV+)
* 13 Days In Ferguson (CBS)
* Wiggin' Out with Tokyo Stylez Series Premiere (WE tv)
* Yo Gabba Gabbaland Series Premiere (Apple TV+)

SEE YOU ON FRIDAY!