Is Corporate Media DEAD!? Oliver Darcy Weighs In | The Don Lemon Show

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The Don Lemon Show 44 min 8 speakers 5 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

Don Lemon Show Producer 0:13
There have been a lot of changes and a lot of upheaval in the media and news industry. And what better person to talk about it than Oliver Darcy, who is the editor-in-chief, am I correct, of Status?
Don Lemon 0:25
That is correct.
Don Lemon Show Producer 0:26
Yes. And media reporter and former colleague and friend. Oliver, thanks for joining.
Oliver Darcy 0:32
I'm very happy to be here.
Don Lemon Show Producer 0:34
Oliver, let's talk about the latest. We'll just go in order of what's happening. Big layoffs at the networks to CNN and MSNBC, but they're not alone. Others are going through it as well. But what is going on at those two networks?
Oliver Darcy 0:49
Well, I mean, I think what's going on at NBC and CNN is that they are dealing with the decline of traditional television. Linear television is in decline. These are television networks, and they are trying to lean out as their business model crumbles beneath them. And they're also trying to transition to a digital future. And so I think what you're seeing and what you're going to continue seeing is these companies spending less money producing television, traditional television, and taking that money, cutting, and moving it over to the digital side.
Don Lemon Show Producer 1:22
But isn't television still, isn't it like 70, close to 80% of their... income or?
Oliver Darcy 1:29
Yeah, it's most of it. I mean, that's where they're making the bulk of the money. And that's where it gets very tricky because you have to basically do this like transplant surgery. So you want to keep the patient that you're transplanting from alive. At the same time, you need to move over to digital. And so that's where it becomes dicey. And you can't really afford in this moment to completely forget about television. That's still a core product. That's still, as you said, making most of the money. At the same time, you do have to invest in the future. And so I think you're seeing executives, whether it's CNN or NBC or any anywhere that's doing television. I think you're seeing them try to do this delicate balancing act.
Oliver Darcy 2:12
And, you know, it's it does unfortunately result in some cuts.
Don Lemon Show Producer 2:16
Yeah, but I believe the biggest cuts are coming from CNN and NBC, which will talk about the ratings, especially post-election and even inauguration. Just real quickly on this subject, are we going to see any additional layoffs in the future? And by the way, how many people are you thinking here?
Oliver Darcy 2:33
Well, at CNN today, they're laying about 200 people off.
Don Lemon Show Producer 2:36
200 people.
Oliver Darcy 2:39
Yes.

What major layoffs and structural changes are happening at CNN, NBC and other networks?

Oliver Darcy 2:39
I think that this is going to be a continued trend. I don't expect that these numbers are, you know, this is not like this is going to be one layoff and then they're going to be fine for the next five years or something like that. I think you're going to continue to see these companies cut, cut, cut and reinvest some of that money in digital. But they're also got to lean out because the future business model, the digital business model is not going to produce as much money as the cable news bundle has. Or as just linear television has. It's just not. And so as a result, these organizations are going to have to shrink. That means their blueprint, their footprint, their footprint is going to shrink. And they're not going to be – and I think, too, you have to keep in mind that the media industry, the environment, it's fragmenting quite a bit.
Oliver Darcy 3:23
There are shows like this. I have a newsletter that's independent.

Why are traditional linear TV revenues collapsing and how are networks shifting to digital?

Oliver Darcy 3:27
The industry, the goner of the day is when there were like three big channels and people watched the evening news and that was it. Now it's completely broken up. And I think as a result, these organizations are going to shrink and there's not going to be that one voice or those big names necessarily who anchor television news. It's going to be split up.
Don Lemon Show Producer 3:48
Well, the thing that I've realized just from doing this that, you know, those organizations are like giant cruise ships, right? It's hard to turn them around. And in this media environment, correct me if I'm wrong, because you're more of an expert, but I am experiencing what it's like to be an independent journalist, is that you have to be nimble. and be where the trends are and um sometimes it's better usually it's better to get content on the fly rather than having the setup and the big camera and then feeding it back and all of those things that were important in traditional linear television like the shiny anchor desk and all that no one cares about that anymore especially with the advent of this people are getting content on this and getting more engagement than traditional television networks

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