This week in media and production, the industry is buzzing with change, and controversy.
New week, new media developments!
While much of the media chatter this week has focused on the blurred lines between politics and the entertainment business, several other key developments continue to reshape the landscape. From a blockbuster merger between legacy powerhouses and strategic restructures, to looming uncertainty around the U.S.'s most downloaded app, plus new leadership moves in the streaming wars — here’s a breakdown of the media shifts you might’ve missed:
Nexstar & Tegna Merger Begins Paperwork
Nexstar Media Group, leading media company, is set to undergo a merger for no less than $6.2B, with no other than its rival, Tegna. The two media companies will start the paperwork process by September 30th, forecasting a deal close by mid next year. Nexstar will acquire its rivals' outstanding shares, however the process is set to be somewhat lengthy, given Tegna's shareholder and regulatory approvals, including clearance from FCC.
Nexstar is among those pressing FCC to lift the 39% cap on broadcast ownership, which limits broadcasting companies to own more than 39% of the country's broadcasting channels.
Night Train Digital Names Neil Francis Managing Director
Ex-YouTube and Skydance exec, Neil Francis, was named Managing Director at company belonging to Night Train Media. Francis' professional background includes more than 20 years of work in online video and broadcasting, having occupied senior roles at Skydance, Blinkbox and Lickd. He has also had a 6-year run at YouTube, where he helped content partners build long-term strategies.
Francis declares: “I’m excited to be joining Night Train Digital to lead the business into its next stage of growth. With strong foundations already in place, there is a huge opportunity to build on our channels and rights across the group, bridging the gap between traditional TV and long-form content on digital platforms. I look forward to working with the team to deliver an industry-leading operation, develop strong partnerships with platforms, and explore digital-first, creator-led content as a key driver of Night Train Media’s future success.”
TikTok Investor Group to Include Fox Corp.
Fox Corp. is in talks to invest and own part of the famous video app TikTok, currently owned and fully-managed by Chinese parent-company, ByteDance. Fox Corps.'s CEO, Lachlan Murdoch, is reportedly interested in acquiring TikTok's share of business operations in the U.S. The acquisition might also include the input and management of Oracle's chairman Larry Ellison, and Dell Technologies CEO, Michael Dell.
While the final leadership strategy is not set in stone, the one thing for certain is that following the investment, the TikTok ownership (and algorithm) in the U.S. region, would be completely managed by U.S. companies.
YouTube, New Leader of US Media Industry, Calls AI Key Player in Content Creation
YouTube has become the new leader in the U.S. media industry, which is not a surprising fact. What once was the go-to platform for amateur, scrappy, home videos, YouTube is now the most popular platform used by Americans to watch TV and live events.
Just last Tuesday, September 16th, during its annual Made on Youtube product launch event, company executives talked about the crucial contribution of content creators to the success of the platform, but also about the implications of using AI. Most topics revolved around how this intelligent technology might reshape the content creation process for YouTube's users - or even replace it, statement which stirred various reactions.
One of the most vocal reactions to this was in fact YouTube's CEO, Neal Mohan, who quickly dismissed the idea of AI replacing content creators. He states: "These are tools, and really just that. Make no mistake: no studio, network, tech company, or AI tool will own the future of entertainment."
As YouTube is celebrating its 20th anniversary, Mohan declares that "video content creation is a viable, respectable and sustainable career path", amid the increasing popularity of AI-generated content.
Tune in next week for more media-centered news and summaries, here, On The Record.
