logo
THE ECONOMIST: Streaming giants may be forced to spin off  news brands as Trump effect takes hold

THE ECONOMIST: Streaming giants may be forced to spin off news brands as Trump effect takes hold

West Australian05-06-2025
A recent Amercian episode of 60 Minutes began with items on medical-research funding, Islamist terrorism and Japan's population crisis. But its biggest story was delivered in the final 60 seconds.
'Our parent company, Paramount, is trying to complete a merger,' the correspondent, Scott Pelley, explained to the show's seven million or so viewers.
'The Trump administration must approve it. Paramount began to supervise our content in new ways.'
The on-air allegation of editorial meddling exposes the rift that has opened between the famous news brand and its Hollywood owner. It also exemplifies a broader problem for media firms.
As American politics has become polarised and, with Mr Trump's return, vindictive, news organisations that were once seen as crown jewels in their owners' portfolios are increasingly viewed as liabilities.
Century-old film and TV company Paramount has struggled in the streaming era and agreed last year to be acquired by Skydance Media, run by tech heir David Ellison in a deal which also includes Network Ten in Australia.
That deal has hit a problem in the form of a lawsuit from Mr Trump, who says that the US version of 60 Minutes misleadingly edited an interview last year with his opponent, Kamala Harris.
The claim is paper-thin, but many at Paramount believe that unless the company admits fault, the government will block its life-saving merger with Skydance.
That fear is all too plausible. The deal requires a nod from the Federal Communications Commission, a formerly easygoing regulator which has grown teeth under the new administration.
Its Trump-appointed boss, Brendan Carr, has argued that the agency's power to block mergers on public-interest grounds covers matters as tenuous as a firm's diversity policies. Paramount is negotiating with Mr Carr and, in parallel, with Mr Trump's lawyers over the 60 Minutes case.
It is not the only media firm to have become politically entangled by its news output. In Mr Trump's first term, antitrust authorities tried (but failed) to stop AT&T's acquisition of Time Warner, which at the time owned CNN, a persistent critic of the president. Last year Disney's ABC News paid Mr Trump $US15 million ($23m) to settle a defamation claim.
Before his re-election Mr Trump argued that Comcast, a cable giant, should be investigated for treason over the 'one-sided and vicious' output of its NBC News and MSNBC channels. Mr Carr has launched a probe into its DEI policies.
None of this has encouraged new media companies to add news to their output. Netflix, the all-conquering streamer, has marched into every genre, from live comedy to sport, but drawn the line at news. Apple TV+ ended its deal with a satirist, Jon Stewart, in 2023 after his political material became uncomfortable.
Amazon produced an election-night show last year, but the only political content on its slate since then has been a $US40m documentary about the first lady, Melania Trump.
What of the older media empires that already have legendary news brands? Some appear to be readying them for sale, as part of a broader separation of their streaming and so-called linear-TV assets.
In November Comcast said it would spin off its cable-TV interests, including MSNBC. In December Warner Bros Discovery restructured to separate streaming from its linear assets, including CNN.
Disney's boss, Bob Iger, has mused that linear networks like ABC 'may not be core to Disney', though he later rowed back. Rumours swirl that Fox News might be sold, given Rupert Murdoch's failure so far to win control of the family trust from his children.
Even if media firms shed their news divisions, it is no guarantee of escape from Mr Trump's attention. The White House recently suggested to Warner Bros that the president's son, Donald Jr, might like a hunting show on the Discovery Channel, according to
New York
magazine. Mr Ellison, Paramount's would-be acquirer, may wonder what he is getting into.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump, EU's von der Leyen to meet to clinch trade deal
Trump, EU's von der Leyen to meet to clinch trade deal

Perth Now

time2 hours ago

  • Perth Now

Trump, EU's von der Leyen to meet to clinch trade deal

European Commission President Ursula von der Leyen is set to meet US President Donald Trump to clinch a trade deal for Europe that would likely see a 15 per cent baseline tariff on most EU goods, but end months of uncertainty for EU companies. Before the meeting, expected at 1530 GMT Sunday (0130 AEST Monday) on Trump's golf course in Turnberry, western Scotland, US and EU teams were in final talks on tariffs for crucial sectors like cars, steel, aluminium or pharmaceuticals. US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland on Saturday and EU Trade Commissioner Maros Sefcovic arrived on Sunday morning. Lutnick told "Fox News Sunday" that the EU needed to open its markets for more US exports to convince Trump to reduce a threatened 30 per cent tariff rate that is due to kick in on August 1. "The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30 per cent tariffs that he set," Lutnick said, adding that the EU clearly wanted - and needed - to reach an agreement. A separate U.S. administration official was upbeat that a deal was possible. "We're cautiously optimistic that there will be a deal reached," the official said, speaking on condition of anonymity. "But it's not over till it's over." Ambassadors of EU governments, on a weekend trip to Greenland organised by the Danish presidency of the EU, held a teleconference with EU Commission officials on Sunday to agree on the amount of leeway von der Leyen would have in the talks. In case there is no deal and the U.S. imposes 30 per cent tariffs from August 1, the EU has prepared counter-tariffs on 93 bn euros ($A164 bn) of US goods. EU diplomats have said a deal would likely include a broad 15 per cent tariff on EU goods imported into the US, mirroring the U.S.-Japan trade deal, along with a 50 per cent tariff on European steel and aluminium for which there could be export quotas. The EU deal would be a huge prize, given that the US and EU are each other's largest trading partners by far and account for a third of global trade. EU officials are hopeful that a 15 per cent baseline tariff would also apply to cars, replacing the current 27.5 per cent auto tariff. Some expect the 27-nation bloc may be able to secure exemptions from the 15 per cent baseline tariff for its aerospace industry and for spirits, though probably not for wine. The EU could also pledge to buy more liquefied natural gas from the US, a long-standing offer, and boost investment in the United States. The US president, in Scotland for a few days of golfing and bilateral meetings, told reporters upon his arrival on Friday evening that von der Leyen was a highly respected leader and he was looking forward to meeting with her.

Trump, EU's von der Leyen to meet to clinch trade deal
Trump, EU's von der Leyen to meet to clinch trade deal

West Australian

time2 hours ago

  • West Australian

Trump, EU's von der Leyen to meet to clinch trade deal

European Commission President Ursula von der Leyen is set to meet US President Donald Trump to clinch a trade deal for Europe that would likely see a 15 per cent baseline tariff on most EU goods, but end months of uncertainty for EU companies. Before the meeting, expected at 1530 GMT Sunday (0130 AEST Monday) on Trump's golf course in Turnberry, western Scotland, US and EU teams were in final talks on tariffs for crucial sectors like cars, steel, aluminium or pharmaceuticals. US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland on Saturday and EU Trade Commissioner Maros Sefcovic arrived on Sunday morning. Lutnick told "Fox News Sunday" that the EU needed to open its markets for more US exports to convince Trump to reduce a threatened 30 per cent tariff rate that is due to kick in on August 1. "The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30 per cent tariffs that he set," Lutnick said, adding that the EU clearly wanted - and needed - to reach an agreement. A separate U.S. administration official was upbeat that a deal was possible. "We're cautiously optimistic that there will be a deal reached," the official said, speaking on condition of anonymity. "But it's not over till it's over." Ambassadors of EU governments, on a weekend trip to Greenland organised by the Danish presidency of the EU, held a teleconference with EU Commission officials on Sunday to agree on the amount of leeway von der Leyen would have in the talks. In case there is no deal and the U.S. imposes 30 per cent tariffs from August 1, the EU has prepared counter-tariffs on 93 bn euros ($A164 bn) of US goods. EU diplomats have said a deal would likely include a broad 15 per cent tariff on EU goods imported into the US, mirroring the U.S.-Japan trade deal, along with a 50 per cent tariff on European steel and aluminium for which there could be export quotas. The EU deal would be a huge prize, given that the US and EU are each other's largest trading partners by far and account for a third of global trade. EU officials are hopeful that a 15 per cent baseline tariff would also apply to cars, replacing the current 27.5 per cent auto tariff. Some expect the 27-nation bloc may be able to secure exemptions from the 15 per cent baseline tariff for its aerospace industry and for spirits, though probably not for wine. The EU could also pledge to buy more liquefied natural gas from the US, a long-standing offer, and boost investment in the United States. The US president, in Scotland for a few days of golfing and bilateral meetings, told reporters upon his arrival on Friday evening that von der Leyen was a highly respected leader and he was looking forward to meeting with her.

ASX seeks to calm investor anger with changes to listing rule waivers
ASX seeks to calm investor anger with changes to listing rule waivers

AU Financial Review

time6 hours ago

  • AU Financial Review

ASX seeks to calm investor anger with changes to listing rule waivers

The ASX is taking an initial, but important, step to calm investor anger over the hot-button issue of the bourse's granting of waivers to the listing rules. In April, the embattled ASX began conducting a wholesale review of the nation's listing rules, following a fierce backlash over James Hardie's $13 billion purchase of American company Azek. In that instance, a waiver was granted that allowed James Hardie to bypass a shareholder vote, issue new shares and make a wildly unpopular acquisition.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store