There have been many quiet Mondays at the Burbank offices of Warner Bros. Pictures, Variety notes, usually after a bomb. This one followed Tom Cruise's "Digger," a cryptic eco-disaster that the studio has just finished absorbing, and it arrived with new owners.
The deal closed October 6. Skydance now holds Warner Bros., Paramount Pictures, HBO, CBS, CNN and TNT Sports under one roof. A roof like that needs a lot of chairs, and the first ones pulled out belong to the Warner film chiefs, who are out under Skydance.
Read the org chart, not the press kit. Skydance's new TV leadership, per Deadline, is built from Co-Chairs only, each sharing a division with a partner, and all the pairs come from the same side. Two executives per job is a merger's way of saying the other side of the deal has not been fully forgiven yet. It also means one more name on every approval email.
Meanwhile, David Zaslav walks away with $606 million, according to Yahoo Finance. A man leaves a company he ran into a sale holding a number like that. The people who get to watch "Digger" land on their performance reviews are, by comparison, on salary.
Zoom out to the customer, who is also tired. Investor's Business Daily reports that US consumers are growing dissatisfied with streaming services amid steady price hikes, and that the hikes are testing the limits of what people will spend. The industry's answer to subscribers running out of patience has been to raise prices and then consolidate the people who set them.
Netflix, which has no merger to blame, is reportedly planning to cut about 5% of its staff as soon as next week. Streaming's growth years rewarded everyone, and the repricing years are sending out invoices.
My read: the merger is celebrated as scale, but scale is also a bigger place to lay people off from. Expect the Warner lot to get quieter on more days than Monday, and expect Zaslav's number to be the one everyone remembers.