30 MAR 2020

WARNERMEDIA DEVELOPS $100 MILLION RELIEF PLAN FOR PRODUCTION CREWS

The offer will cover for employees whose jobs were halted by production delays. Despite the cancellations, TV ratings, have increased, specifically for news. CNN has increased more than 132% during the total day, and 167% in prime-time since March 9 in the U.S.. HBO as well, with HBO Now up over 40% from its four-week average.

30 MAR 2020

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Warner Media has committed $100 million to help production crew members whose jobs have been impacted by the coronavirus outbreak. The disclosure was made by the company’s Chief Executive, John Stankey in a Friday memo to staff. “We have paused many productions for the health and safety of employees, cast, crew, and community,” Stankey said. “We are stepping up with a commitment of more than $100 million to assist team members of those productions during this time. And as things evolve, we’ll continue to evaluate how we can best respond to the challenges we face as an industry as a result of this pandemic.”

Brokerage Cowen & Co. downgraded AT&T’s stock this week to “market perform” as a result of the expected damage from the pandemic, specifically to WarnerMedia. “Within its WarnerMedia business, we have reduced our estimates assuming heavy social distancing measures remain in place until June and that the economy is in a recession for the remainder of 2020,” Cowen & Co. said in its report. The crisis, however, has resulted in higher TV ratings, particularly for news. According to Stankey, CNN has increased more than 132% during the total day, and 167% in primetime since March 9 in the U.S. HBO as well, with HBO Now up over 40% from its four-week average. HBO Max is still scheduled for release, intended to compete with Disney+, Netflix and NBCUniversal’s Peacock. “We’re all focused on overcoming these business challenges, but let’s not forget the important role we play for our audiences around the world,” Stankey wrote. “We don’t know how long we’ll be in this situation, but I am incredibly proud of how we are adapting during our global work-from-home efforts.”

AT&T Inc-owned Warner Media, the parent company of the Warner Bros. movie and TV studio, HBO and Turner networks was obligated to pause multiple productions due to public health concerns. Burbank-based Warner Bros. also halted several films, including “The Batman” in Britain and an Elvis Presley biopic in Australia. Actor Tom Hanks, who is featured in the film, was among the first celebrities to contract the virus, as was his wife, Rita Wilson. HBO has stopped production of “Succession” and “Barry.” NBCUniversal CEO Jeff Shell, who tested positive for the virus, confirmed the Comcast Corp. subsidiary has committed $150 million to help TV, film, and theme park workers who have been affected by the coronavirus response. Netflix made a similar commitment last week, pledging $100 million to help the crew get through their lay-off days. About $15 million of the Netflix fund will go toward helping the broader television and film industry through third parties and nonprofit agencies.

We are stepping up with a commitment of more than $100 million to assist team members of those productions during this time. And as things evolve, we’ll continue to evaluate how we can best respond to the challenges we face as an industry as a result of this pandemic.” John Stankey Chief Executive of Warner Media