Reality-TV president will co-produce media shakeup
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Jennifer Saba
NEW YORK, Nov 8 (Reuters Breakingviews) -Donald Trump will have more than just a cameo role in the big media show under development. The former U.S. president’s successful run back to the White House already illuminated his influence over the industry and how it is changing. His interference last time around and his own fledgling social-media operation further suggest he’ll play a bigger part in the business models and deal-making taking shape.
Joe Rogan is a case in point. The popular Spotify Technology SPOT.N podcaster became an important stop on the campaign trail, one that Democratic contender Kamala Harris fatefully skipped. The former “Fear Factor” host endorsed Trump the day before the national vote, further extending his clout after a late-October interview with the candidate attracted 47 million views on YouTube.
Amazon.com founder Jeff Bezos also helped flatter Trump’s sway. The billionaire owner of the Washington Post yanked an editorial backing Harris, conveniently arguing that presidential benedictions create a perception of bias. Some 250,000 readers canceled their subscriptions, cementing the trend of consumers choosing news providers that hue to their views.
Meanwhile, large publishers and broadcasters have dropped to the least trusted civic or political group, just below Congress, at 31%, according to a recent Gallup poll. As media conglomerates and other companies wrestle with the problem, they’re also struggling to make streaming services profitable as traditional TV viewership tumbles. Fickle consumers are being inundated with pricey offerings, including HBO Max, Disney+ and YouTube. A financial reckoning is quickly approaching.
Warner Bros Discovery WBD.O boss David Zaslav said on Thursday that his industry needs to meaningfully consolidate to survive. He also name-checked the incoming Trump administration as a potential catalyst. Days before Americans voted, Comcast CMCSA.O also said it was considering spinning off its cable networks after the division that houses it disclosed lousy results.
Trump’s tendencies also precede him. His Justice Department sued to block AT&T’s T.N $85 billion acquisition of Time Warner in 2016 as he fumed about coverage by CNN, a news channel included in the transaction. MSNBC, a liberal-leaning rival to Rupert Murdoch’s Fox News, may turn out to be a similar headache for Comcast boss Brian Roberts and his strategic plans.
The commander-in-chief’s backers, on the other hand, theoretically will have an easier path. Skydance Media, for example, which is buying Paramount Global PARA.O, is funded by Oracle founder and Trump supporter Larry Ellison, whose son also will be running the film studio and CBS network. Wherever media moguls stand, they should be prepared to edit their scripts.
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CONTEXT NEWS
Warner Bros Discovery Chief Executive David Zaslav said on Nov. 7 that he expects a friendlier environment for deals under incoming U.S. President Donald Trump, adding that the media industry needs to consolidate.
The company behind networks HBO and CNN reported an 18% decline in third-quarter adjusted EBITDA, to $2.4 billion, from a year earlier on a 3% drop in revenue, both figures excluding currency movements.
The Joe Rogan and Trump experience https://reut.rs/48EH01T
Editing by Jeffrey Goldfarb and Pranav Kiran
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