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Old 10-08-2020, 07:13 PM   #57710
Emperor Smeat
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AEW's home network TNT is about to get hit with a huge wave of layoffs as part of WarnerMedia's current restructuring plans that are massive in scale.

Main reason is WarnerMedia has been getting hammered in revenues in several key areas during the coronavirus pandemic and their HBO Max streaming service being a big bust in terms of expectations and revenues since its launch.

Quote:
Originally Posted by WrestlingInc
The company is implementing the cuts due to the decline in revenue from cable subscriptions, television ad revenue and movie ticket sales. The company noted that "an acceleration in shifting consumer behavior, especially in the way content is being viewed" is responsible for much of the decline.

"Like the rest of the entertainment industry, we have not been immune to the significant impact of the pandemic," a WarnerMedia spokesperson said in a statement. "That includes an acceleration in shifting consumer behavior, especially in the way content is being viewed. We shared with our employees recently that the organization will be restructured to respond to those changes and prioritize growth opportunities, with an emphasis on direct-to-consumer. We are in the midst of that process and it will involve increased investments in priority areas and, unfortunately, reductions in others."

This is the second round of layoffs for WarnerMedia as they cut 500 jobs in August at Warner Bros. Both NBCU and WarnerMedia have implemented layoffs recently as they pivot towards streaming. While WarnerMedia's HBO Max service has only garnered 4.1 million subscriptions since it launched in May, overall HBO subscriptions, which includes viewers watching it on premium channel bundles, rose to 36 million. It was noted that the increase in subscriptions "hasn't offset deeper declines at the commercial entertainment cable networks TNT, TBS and TruTV."
The huge hit in ad revenues probably going to get worse for WarnerMedia and the TV industry in general since that was a huge fear experts had with the coronavirus pandemic if it didn't ease up prior to the Fall sweeps.

AEW got extremely lucky with the timing of their modified TV deal with TNT since they would be hurting just as badly if the only real money coming in was from their share of ad revenues.
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