All Access

Media Deals

Media Deals Alerts

Alert

Standard

Media Deals Thought Bubble

Thought Bubble

mustard

BFD Expert Voices - Media Deals

BFD Expert Voices

The Writers Guild of America is on strike for the first time in 15 years after negotiations for a labor deal with Hollywood studios broke down ahead of the current deal's expiration yesterday.

Why it matters: A work stoppage threatens to cripple Hollywood's already-messy transition to the streaming era, Tim writes.

Details: The strike began this morning, and writers will start picketing outside studios and media companies' offices this afternoon. 

During the strike, all WGA members are barred from performing writing duties for any of the struck companies, though they may perform other work like producing or directing.

Given the time of year, most broadcast shows will be in-between seasons. But a strike going deep into the summer would lead to delays for the 2023-24 season.

Late-night and daytime television shows will immediately halt production.

Streaming services and film studios are less affected initially because they produce their content well in advance.

What's next: This is just the beginning: The studios' labor contracts with the Directors Guild of America (DGA) and SAG-AFTRA, which represents the actors, both expire at the end of June.

Both the DGA and SAG-AFTRA have voiced support for the WGA, but will continue working during the WGA strike.

The DGA will begin negotiations on May 10, while SAG-AFTRA is slated to start its talks in early June.

1 big thing: Hollywood writers go on strike

A man with "writer" printed on the back of a t-shirt joins members of the Writers Guild of America, East picket Rockefeller Center, the headquarters of NBC, 05 November 2007, in New York

Vice Media is preparing to file for bankruptcy, according to two sources familiar with the matter.

Why it's the BFD: Vice was once considered one of the most successful news startups of all time when investors valued it at $5.7 billion in 2017. Now it's struggling to sell itself for more than $1 billion, Sara Fischer writes.

Details: The company has taken steps to file for possible bankruptcy if it cannot secure a buyer in the next few weeks, sources tell Axios.

Vice is still engaged in talks to sell itself, either in full or in pieces, two sources tell Axios. A sale would prevent bankruptcy, but finding a buyer willing to pay more than $1 billion for the company has been challenging, as has finding one willing to take on the company's debt load.

Vice raised more than $30 million in debt financing from Fortress Investment Group, one of its largest creditors, in February. Fortress had already participated in Vice's $250 million 2019 debt round.

The latest round gave the firm preferential treatment to be paid out first should the company sell, The Wall Street Journal reported. If the company did go bankrupt, it's likely Fortress would take control of Vice and run an auction to sell it, per The New York Times, which first reported the potential bankruptcy news.

A Vice Media Group spokesperson said the company "has been engaged in a comprehensive evaluation of strategic alternatives and planning. The company, its board and stakeholders continue to be focused on finding the best path for the company.”

Fortress did not respond to a request for comment.

2. The BFD: Vice prepares for bankruptcy

A general view of the VICELAND launch party at Village Underground on September 15, 2016 in London, England.

Photo: David M. Benett/Dave Benett/Getty Images for Vice

• Gersh, the Beverly Hills-based talent agency, sold a 45% stake to Crestview Partners and promoted Leslie Siebert to co-president. https://axios.link/3AMiM5S

• Sound Ventures, the VC firm co-founded by Ashton Kutcher and Guy Oseary, raised $240m for Sound Ventures AI Fund. Its portfolio includes OpenAI, Anthropic and StabilityAI. https://axios.link/3HwEY7X

3. Deal flow

• UMe, the catalog division of Universal Music Group, promoted Tim Plumley to VP of media and artist relations. https://axios.link/40WPDPO

• Snap hired Patrick Harris, a nearly 12-year veteran of Meta, as SVP of partnerships and David Sommer, former chief commercial officer of shopping app Fetch, as head of verticals. https://axios.link/41bIYBP

4. Movin' on up (or out)

🔥 Amazon debuts free, ad-supported streaming channels just for Fire TV (TechCrunch)

"Fire TV is gaining a set of new FAST channels from NHL, Xbox, and TMZ, as well as a new Travel category featuring content from Tastemade Travel, 'Rick Steves' Europe,' 'Travel Hacks,' and soon, Condé Nast Traveler. Later, Fire TV Channels will also include content from the PGA," Sarah Perez writes.

📺 Vizio debuts branded content studio, refreshed home screen at NewFronts (Adweek)

"Though Vizio has had sponsorship and integrations for years on its platform, such as a TurboTax integration with the Big Game/Super Bowl hub or a Progressive sponsorship of DIY channel Vizio House, the company is getting in on the branded content wave," Mollie Cahillane writes.

💰 YouTube puts Shorts at center of NewFronts pitch (AdAge)

"Kristen O'Hara, VP of agency and brand solutions, introduced [Alan Chikin] Chow as the No. 1 Shorts creator at YouTube's IAB NewFronts show [yesterday], as the video behemoth makes a play for TikTok's cultural resonance," Garett Sloane writes.

5. Channel surfing: NewFronts edition

Illustration of a surfer with a television in the place of his head.

🗣️ Quote of the day: "At the end of the day, it's interactive entertainment, so that interactive portion has to feel good," EA executive Vince Zampella tells Axios Gaming's Stephen Totilo. 

🏈 Situational awareness: This past February's Super Bowl is now the most-watched TV event in history, after a Nielsen recount added an additional 2 million viewers. 

@tim_bays: Roku's NewFront at the Chelsea Factory. These are going to get awkward now that the ones responsible for creating all the content are on strike. 

@kerrymflynn: Chance the Rapper at Racket NYC. Yahoo is hosting a concert, no presentation, for NewFronts tonight. 

✏️ Thanks to Michael Flaherty for editing and Katie Lewis for copy editing this newsletter.

Thank you for reading Axios Pro Media Deals! Please ask your friends, colleagues and WGA members to sign up.

May 02, 2023

1 big thing: Hollywood writers go on strike