Commentary

Layoffs, Revamped Film/TV Marketing - As Business Concerns Mount Over AI

• by Wayne Friedman , Staff Writer, June 4, 2025

Walt Disney is laying off hundreds of staffers across its film and TV divisions, with many coming from marketing positions, according to news reports.

Somewhat regular announcements related to media companies' layoffs can seem like ordinary business to some -- regardless of industry-disruptive phrases attached to those moves like "cord-cutting," or even less media industry-specific words such as "pandemic."

But now layoffs are coming amid heightened business concerns around "AI" -- artificial intelligence. What does this have to do with anything, especially entertainment marketing? Savings, anywhere you can get it.

The rise of AI-influenced marketing efforts is coming at a fast and furious pace -- and especially to those more savvy media and digital-first companies.

In a recent announcement, Meta Platforms and its CEO Mark Zuckerberg said that in a couple of years, AI will not only replace many decisions related to brands' media-planning efforts on Facebook/Instagram, but much of the creative activations as well.

Meta is looking to fully automate ads on its platforms by 2026, enabling brands to activate a campaign by just inputting their business URL. Meta’s AI creative and targeting systems will do the rest.

So specifically, what are we talking about in the future of marketing of entertainment?

Video content, primarily -- trailers, video clips, content of TV shows and original theatrical and streaming movies. All that may seem easy for AI to figure out.

While legacy media platforms TV networks --and now streamers -- are a critical and obvious place for video engagement to attract consumers, this also looks like fertile ground for AI efforts to take hold.

This all comes in tandem with movie and TV marketing on social media. (Hello, Meta!)

Consider the explosion of entertainment options out there, especially now with streaming. AI coming from a TV network or streaming group -- a la Meta -- could be around the corner.

More broadly, Sam Altman, co-founder/former of CEO of OpenAI, predicted over a week ago that AI would replace 95% of ad agency work in the future.

Considering the looming clouds looming over much of the legacy media business these days -- linear TV, cable-network centric TV channel bundles, and everything in between -- should we expect other media companies to peacefully acknowledge defeat and issue their own staffing reductions .. with future efforts offered to Meta?

Perhaps a few AI-generated press releases are on the way.

 

Commentary

Is Cord-Cutting Hurting Everyone? Not Exactly

• by Wayne Friedman , Staff Writer, June 6, 2025

Cord-cutting continues to eat into the traditional linear TV pay TV business -- with subscriber declines of around 10% in recent quarters -- now landing at an estimated 40-or-so million, according to Bernstein Research.

Adding in virtual pay TV providers has not helped much -- contributing to a total decline over the last couple of quarters of around 5%, resulting in a total of about 62 million subscribers.

All this has driven declines in linear TV affiliate revenues --- anywhere from 3% (for Walt Disney) to a recent 8% drop (for Warner Bros. Discovery).

At the same time, only one legacy TV-network-based media company still shows gains: Fox Corp. And you probably know the reason why: High-valued sports and news content.

Fox Corp. posted an eye-opening 5% gain in the most recent first quarter to about $2 billion in linear affiliate revenue -- a number that has been trending higher, growing from a 2% increase starting in the third quarter of 2023.

Fox is still big on what linear TV can do for its business. Only recently did it announce a broad-based premium streaming platform -- Fox One -- that will house news, sports, and entertainment content. But this is about six years after legacy TV media companies launched their own premium streaming platforms.

Even then, Fox's announcement of its forthcoming streamer is designed to “complement” -- not replace -- its traditional broadcast and cable channels.

This, of course, is why Fox has been able to weather the rise of premium streaming competitors, which currently have been seeing some maturing of their business and cutbacks. That said, many premium streamers are now profitable.

Walt Disney and Warner Bros. Discovery are now regularly posting quarterly positive cash flow. Paramount Global and Comcast (NBCUniversal) are improving, but are still in the red.

To be fair, Fox Corp. -- like other legacy media companies-- has been impacted by losing cord-cutting subscribers -- down 6.5% in the first quarter of this year, according to Bernstein Research. But this is a smaller decline than Disney (8%) and WBD (9%).

Does it expect this to continue? Possibly.

Think about this: For Fox One, the company doesn’t even intend to target the usual suspects -- longtime pay TV customers. Instead, it looks to target mostly “cord-nevers” -- those who have never had traditional cable/satellite TV subscription in the first place.

This makes sense in terms of explaining why Fox Corp. still focuses on preserving legacy TV partnerships.

Hard-pressed executives at companies like Comcast Corp., Charter Communications, YouTube TV, Sling, Hulu+Live TV must be smiling -- at least a little bit.

 

Commentary

WBD Slicing Away Cable Nets an Easier Split Than Comcast? Something Else?

• by Wayne Friedman , Staff Writer, 8 hours ago

Warner Bros. Discovery now follows the strategy of where Comcast Corp. has gone with its spinning off its declining, mostly cable TV networks. But it could be a bit more complicated.

On the surface, and plainly, WBD keeps the good stuff -- and not just because of high-level streaming and studio-production business. Think about cash flow.

Estimated EBITDA for the WBD Streaming & Studios is a combined $4.3 billion for this year. This includes not just TV and moviemaking abilities, but Warner Bros. Games and Experiences businesses.

WBD did not disclose anticipated WBD Global Networks, however. The problem now is that much of the still eye-popping $38 billion debt will be put onto WBD Global Networks.

In a presentation on Monday, WBD executives talked up the positive -- that the company is now left in a unique position as a pure-play streaming and studio company.

In that regard, it is different from Comcast's Versant -- a forthcoming cable TV, network-centric business.

Comcast Corp. will keep the NBC Television Network and Bravo. In this regard, WBD does not have a live, linear broadcast TV network, which as a strict legacy TV business, can be viewed positively.

That said, Comcast isn't exactly splitting up all business operations of its legacy TV business.

Initially, analysts believe splitting NBC Television Network and Bravo from its cable networks could significantly hamper and harm the advertising leverage for NBCUniversal cable networks -- MSNBC, CNBC, USA Network, Syfy Channel, Oxygen, and Golf Channel.

Fixing this problem for Versant to an extent last month, it has struck a two-year deal with NBCUniversal -- a commercial service agreement -- to sell domestic advertising inventory, this is to keep the bigger ad-selling operation together.

While that would seem to ameliorate the separation of the publicly traded pieces of the business, it doesn't seem to address more declines for live, linear TV viewing usage.

NBCUniversal still has its big, growing premium streaming business in-house: Peacock. This is similar to where WBD will be with regard to HBO Max -- the returning brand name of Max.

For its part, WBD is left to try to build up discovery+ -- as well as the possibility of finding new streaming platform businesses for CNN -- on the Global Network side of things. Comcast has similar issues with boosting MSNBC/CNBC streaming activations.

WBD now has its TNT network without the NBA. It does retain the three-week, end-of-the-season college basketball event, "March Madness." Versant probably will look to grow some of its limited sports business on the USA Network.

Which newly spun-off cable TV network groups are poised to do better? Few are placing bets. That said, analysts might consider the idea of a merger -- further complicating these moves.

What remains? Paramount Global could be next.

AI Adoption is More Than Just Tech, It’s A Mindset Shift for Marketing Teams

 

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AI Adoption is More Than Just Tech, It’s A Mindset Shift for Marketing Teams

Jonathan Milne

May 29, 2025

Adopting artificial intelligence (AI) is not about picking the right tools and technologies, it actually requires a shift in thinking. The people who will succeed in AI are not just technologists; they have a particular set of traits. They are curious, use systems-thinking and understand the importance of starting with “why” instead of “what” or “how.” And, yes, they commonly have a growth mindset, as they are always curious to learn new things.

Great AI change leaders foster an environment where all team members learn from each other.

AI Adoption Is About Change Management

Imagine you’ve stocked your kitchen with the finest ingredients: organic flour, farm-fresh eggs, rich Belgian chocolate (my favorite). You’ve purchased the latest top-of-the-line mixer. But here’s the challenge: You don’t have a recipe. This is how most marketing teams are approaching AI adoption.

They invest in the newest tools with the expectation of immediate return on investment. Tools don’t bring success; People who know how to use them do. And just like with baking without a recipe, success happens with the right people in an environment where experimentation and learning will ultimately result in creating something that fits your goals.

Now some will ask, “Why not simply ask AI for a recipe?” Certainly, you can. You can give AI a list of instructions, your flavor preferences and dietary needs and get a personalized recipe back. That’s amazing. However, it’s still your guidance that makes the outcome remarkable. It’s your input, your adjustments, your taste-testing that turn a generic recipe into something remarkable.

Here is where marketing leaders need a mindset shift. AI is not a shortcut; It’s a partner that is available 24/7. And like any partnership, it requires collaboration, transparency and trust.

That’s why adopting AI is not a tech launch, it’s about change management. It is a question of empowering your organization to build the skills, the confidence and the curiosity to work with AI. To experiment. To fail fast. To learn what’s optimal for your business.

There is a simple seven-step approach that can help marketing leaders lead this change. Because the goal isn’t just to make cookies – it’s to make the right cookies, together, in a way that works for your team.

7 Steps to Lead AI Change in Your Marketing Team

AI adoption is a people-first journey, grounded in best practices from change management. The following framework can help marketing leaders guide their teams from AI uncertainty to confidence.

1. Define the Why and Paint the Vision

Help your team understand why AI matters to your business and how it aligns with your values – and most importantly the goals of the individual team members, the department and the organization itself. Create a compelling vision of how AI can elevate their work and replace the more mundane tasks. When people see the destination, they’re more likely to take the first step.

2. Demystify AI for Leadership

Many senior leaders have read about AI in research reports, studies and social media headlines, but few have seen it in action. Carve out time to demo real tools, show outputs and spark curiosity. A live experience of AI often flips the switch from doubt to buy-in, and trust from the top makes change much easier.

3. Build Skills, Not Just Awareness

Understanding AI basics, like what does GPT stand for (generative pre-training transformer) or how to write a useful prompt, is now considered table stakes. Now is the time to go deeper. Equip your team with skills they can use immediately. Host hands-on sessions, build prompt libraries and custom GPTs, and talk openly about limitations and risks. The more confident your team feels, the more likely they are to embrace experimentation.

4. Answer the Question: ‘How Does This Help Me?’

This is the most important step in people change management. As a manager, you must clearly state and show the benefit to your team members or they will never get onto the adoption curve. Show them how AI can eliminate the repetitive, time-sucking parts of the job, freeing up marketers to do more creative, strategic work. And be real. Those who can’t shift to this higher-value work may struggle in the AI era. This isn’t about creating fear, it’s about preparing your people to thrive. As they say, AI is not going to replace people, people using AI will.

5. Let Them Play and Experiment

Reading about the latest AI trends is one thing, but using it is another. Create as many opportunities as possible for your team to try tools in a safe, structured way. Encourage team members to share what they learn and share what the tools can and currently cannot do well.

Of course, you will need an AI Code of Conduct that will clearly define rules around data privacy and security. Think about how you can create a positive learning “sandbox,” not a free-for-all for your team to learn and play together.

6. Start Small and Scale

Often when we start with AI we think that these agents can tackle large, multiple-step tasks. Instead, look for small, bite-sized, well-defined use cases such as helping with outlines, reviewing a first-draft copy, crafting your meta titles and descriptions for blogs, or summarizing research. Smaller wins will roll out to bigger wins. Then scale those wins into more complex use cases as confidence grows.

7. Keep the Momentum Alive

Last but not least, every week ensure that the topic of AI is front and center in all your meetings and check-ins. AI adoption is not a singular workshop, announcement or training session. Consistently have team members share wins and challenges, celebrate experimentations and continually share use cases that will help inspire other team uses. Real change happens not when new tools are introduced, but when team members’ mindsets shift.

When you bring your team along for the ride, they stop seeing AI as a threat and start seeing it as a powerful teammate.

The Future of AI in Marketing: The Mindset Shift

Marketing teams must go beyond just adopting AI tools and embrace them as a teammate. AI won’t replace human creativity, but it will enable more of us to be creative, and it will definitely change how we work in the future. Marketers will be able to shift their focus from mundane, repetitive tasks to developing new ideas. Leaders who push for curiosity and experimentation, and who start to realize that AI creates new capabilities for us to execute campaigns more effectively, not just efficiently, will do well in this AI-driven future.

The future of AI in marketing isn’t just about automating – it’s about changing everything.

 

Young Adult Viewers: More Streaming Apps, Higher Churn

• by Wayne Friedman , Yesterday

Young 18-34 streaming viewers remain a volatile consumer group. While they have subscribed to more streaming platforms compared to the average streaming consumer, they are more likely to drop services on a month-to-month basis, according to Ampere Analysis.

Those consumers are 58% more likely to “churn” -- drop services and then re-subscribe -- over the next 12 months than the average global streaming consumer (40%).

Ampere says streaming and connected TV (CTV) services among this group compare unfavorably to social media -- with only 52% of those young consumers using CTV platforms, versus 85% of 18-34 consumers using social media.

“Many turn to social media for quick, frictionless content to avoid decision fatigue,” the Ampere Analysis authors say. “To stay relevant, streamers must either position themselves as lean, cost-effective complements to premium services, with a clear and defined role in the content stack or elevate their core value proposition to justify a higher price point.”

Premium streamers continue to battle some of this defection by young consumers -- especially with lower-priced advertising-supported options.

At the same time, premium streaming platforms -- such as Netflix, Disney+, Hulu, Paramount+ and Max -- all continue to raise prices for other options, especially ad-free subscriptions.

The survey notes that the young 18-34 demographic averages 4.2 streaming platforms versus the overall subscriber average of 3.3.

Ampere’s consumer survey occurred in the first quarter of 2025 among 56,000 participants from 30 markets, of which 21,107 were in the 18-34 group.

 INSIDERADIO

Proposed AI Ad Rules Face Resistance from Broadcasters, Ad Agencies.

• 15 hrs ago
 

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The One Big Beautiful Bill Act (H.R. 1) backed by President Trump runs 1,038 pages. The spending measure was approved by House Republicans last month, and it is what appears on page 278 that is something that has the eye of the broadcast and advertising industry alike. If passed, it would enact a 10-year moratorium on state laws regulating artificial intelligence.

Broadcasters are especially focused on proposals targeting the use of AI in advertising, like a pair of bills that are advancing in New York. They have prompted the New York State Broadcasters Association (NYSBA) to take the rare step of taking to airwaves to advocate against the proposals.

The bills (S.1228C/A.606B) would create a “synthetic performer disclosure requirement” that will require any AI voice in a radio or TV spot, or an AI-generated image in a TV, print or digital ad to be clearly labeled so that the average person will be able to quickly decipher the person isn’t real. Failure to properly label a synthetic performer will result in fines of $1,000 for the first violation, and up to $5,000 for subsequent violations.

State Sen. Michael Gianaris (D-Queens) says the increase in the use of generative AI across all forms of media necessitates action. “Without notice that the content one is viewing is not real, synthetic performers and manipulated media contribute to a false news narrative and undermine one's ability to accurately distill fact from fiction,” he writes in a sponsor’s memo to fellow lawmakers.

But New York broadcasters are fighting the proposal, saying it would make advertising more expensive for small businesses, while also effectively preventing radio and TV stations from using new technology to compete against Big Tech. Since AI is often used to produce the localization tags in spots for each market, NYSBA says local radio stations will be especially hurt if the law passes because advertisers will not buy time on a station if they are required to place lengthy labels on every radio spot. It also points out that stations receive thousands of advertisements per week from national networks and programming syndicators. Not only would it be impossible to pre-screen them all, NYSBA says local stations may also be bound to air them under contract. The association is also worried that the definition of AI in the proposed law is so expansive, it could apply to just about any advertisement that was stored or modified in some way by a computer.

To help push back against the proposal, NYBSA has created ads for radio and television that it asking members to air. The spots urge listeners to contact their local lawmakers and urge them to reject the bills.

Broadcasters aren’t along in sounding the alarm. The American Association of Advertising Agencies is also going on record opposing the effort. While the legislation aims to promote transparency for consumers, the 4A’s says the unintended consequences would be “substantial” for advertising. It says it would inject “compliance uncertainty” into the advertising process, burdening brands and their agencies, and undermining creative and technological innovation.

“There are plenty of legitimate use cases for AI-generated advertising, and the vast majority of brands and agencies have absolutely no intention of deceiving or misleading their target audiences with content developed or altered using GenAI tools,” the 4A’s writes in a letter to lawmakers.

It too argues that not only is the definition of AI overly broad, but it would include a wide array of long-standing post-production practices that have been standard for decade. The 4A’s says the required labels would also inundate consumers with repetitive, overly cautious notices. By “overregulating and over-labeling,” the ad group says a well-intentioned measure would turn into “a source of misinformation and consumer fatigue.”

The National Association of Broadcasters and the Association of National Advertisers have also spoken out against the New York effort and AI regulations related to advertising overall. When the Federal Communications Commissions was considering an AI disclosure rule targeted at political ads last year, the NAB pointed out that the technology is becoming a tool for broadcasters. “Generative AI is not the enemy,” it said in a filing, calling it the equivalent of a studio microphone.

New York’s legislature previously considered proposals to mandate AI labels in its two previous sessions, but none of the legislation got past committee. This time, the bills have moved onto the floors of the Senate or Assembly. Time is short, however. The legislature’s session is expected to draw to a close on June 15, which will make the next few weeks critical in its latest effort

 

Commentary

Sports TV, Streaming Rights Fees Headed... South? It's Possible

• by Wayne Friedman , Staff Writer, May 28, 2025

Could sports rights fees -- against all logic -- see a decline in the coming months?

There is a slight possibility. But the trend is still an overall upswing.

One seemingly narrow trend arises from the NBA contracts. The league’s long-term contracts will end in a couple of weeks, following the conclusion of the playoffs and the championship series.

Then, rising sports fees will begin to flow again in the fall. This will begin in October, when the new 11-year deals start up again -- some with new players NBCUniversal and Amazon Prime Video.

The NBA’s 11-year deals -- valued at $76 billion and struck last year -- come just after the NFL's 11-year deal, valued at $110 billion and completed in 2023. Both have seen sharp increases compared to previous, respective contracts.

But going forward -- perhaps starting now and continuing through a five-year outlook -- we could see a different trend, and one with fewer potential buyers.

Under financial stress, legacy TV-network focused media companies could see a consolidation in the coming years -- which will result in fewer players bidding on sports deals of all types.

For example, major media companies like Paramount Global and Warner Bros. Discovery are considering spinoffs -- even outright sales -- of their traditional TV networks, according to analysts.

Some believe this could result in possible mergers of these businesses. This might also include that of Versant, a spinoff of Comcast’s cable TV network including USA Network, MSNBC, CNBC, E!, and Golf Channel.

One major deal from the selling side could be for Major League Baseball -- with a new sports TV/streaming deal -- from at least one of its partners.

ESPN and the league have agreed that the big sports cable network can get out of its last contract a year after the current season is completed.

ESPN has seen much thinner profit margins with baseball content.

There have been much sharper financial declines, with regional sports networks (RSNs) that have carried baseball -- including the biggest RSN, Diamond Sports Group, owned by Sinclair Inc, which has been in bankruptcy protections since 2023 due to cord-cutting pay TV issues.

NBCU is, according to reports, considering buying ESPN’s piece of its MLB media deal. But knowing ESPN fairly public reasoning in abandoning the league, it could be in a great bargaining position going forward.

Is this a tip of the sports iceberg? And will cord-cutting look to have all types of current media partners asking for financial relief?

TV News Check

Industry News - Television, Cable, On-demand

Key Trends in Ad supported Streaming In 2025

May 28, 2025| Dave Dembowski| Add comment

Operative’s Dave Dembowski: Media companies face a key decision this year to focus top CTV inventory on direct premium sales or leverage technology for more automated buying and delivery.

The first half of 2025 has been a roller coaster for advertisers and media companies alike. U.S. political instability in particular created uncertainty that tempered the Upfront and NewFront ad sales season. Of course, every action has a reaction, and the CTV advertising industry is no different. As traditional direct ad sales decline, new opportunities emerge in the second half of the year that could alter the way buyers and sellers do business for years to come.

Media companies have a decision to make focus their top inventory on direct premium sales to make up for a down year of Upfronts or leverage technology to capture growing demand for more automated CTV media buying and delivery. Many factors are in play, which will determine how each media company moves forward in 2025 and beyond.

First-Half Of 2025: CTV Growth Amid Market Uncertainty

Key trends in streaming and advertising are intertwining. In 2025, ad-supported streaming has transitioned from an alternative to the standard. Two-thirds of adults prefer ad-supported streaming over other streaming business models. This shift is driven by rising subscription costs and fatigue over managing multiple paid services. Platforms like Netflix, Disney+ and Amazon Prime Video have introduced or expanded their ad-supported tiers, offering consumers more affordable options while providing advertisers with broader reach.

CTV Continues to outpace traditional linear TV in both viewership and advertising growth. By 2025, CTV ad spending in the U.S. is projected to exceed $25 billion, with 72% of households having cut the cord. Advertisers are increasingly attracted to CTV’s high engagement rates and advanced targeting capabilities, making it a central component of modern media strategies.

While ad-supported streaming is a bright spot of growth for the market, tariffs and economic uncertainty could reduce the growth significantly in the second half of the year. Streaming services are competing for finite ad dollars in an already hotly contested field, and a looming recession may place additional pressure on advertising budgets. This environment necessitates strategic planning and adaptability from media companies to navigate potential market fluctuations.

Creating A Stable Platform For Growth

In the rest of the year ahead, media companies are going to be focused on the all-important Q4 holiday season. Even with economic turmoil Q4 will inevitably make or break media companies. The brands that didn’t commit in the first half of the year may lean in starting in September as they realize they can’t generate sales without advertising spend regardless of the risks at play in the larger economy. Advertisers are going to want the opportunity to reach precise audiences across channels and platforms and will want to have control over pricing and targeting more than ever before.

Media companies are facing a turning point in their TV business. Demand for automation and targeting on CTV channels is merging with demand for premium placement on linear TV. Once left to separate digital and linear processes, media companies are faced with the need to unify their business to meet this new breed of advertiser demand. Creating a monetization strategy that is competitive requires agility, data and total control over audience and product.

Many media companies have been reluctant to share audience data, to unlock targeting on premium inventory and to sell their best inventory programmatically. All of these elements will be tested in the second half of 2025, when advertiser demand could push media companies to change their strategies.

The good news is that media companies don’t have to relinquish their ad sales strategies but rather modernize them. Live events, sports and other premium spots can still be sold directly, but need to be incorporated into a larger, agile, automated process. Media companies can hold onto control while streamlining their platforms for greater efficiency and agility.

Working on putting technology and processes in place now to capture demand in a way that can also be profitable is critical.  Media brands must focus on direct-sold innovation such as “linear streaming” which enables premium sales with dynamic delivery across streaming and linear TV. They also need to have the infrastructure in place to deliver and optimize ads fluidly across all content to reduce manual work and increase margins.

Key technology upgrades that media companies need to be considering in 2025 include programmatic capabilities, dynamic ad insertion and more sophisticated measurement frameworks that can validate business outcomes and help capture additional revenue.

Unified data platforms that connect viewer behavior across live, on-demand and digital touchpoints will also be key. With the right infrastructure, media companies can go beyond reach to deliver targeted, outcome-based campaigns that attract performance-driven marketers as well as traditional brand advertisers.

Dave Dembowski is SVP of global sales at Operative.