Welcome to Best of the Week, written early on Saturday morning back home in sunny Evandale, Tasmania, where it’s a relief to get out of that Sydney rain.
Today: Will the Lehrmann verdict move up Warburton’s exit?; The future of Paramount firms up; and more detail for our HumAIn lineup.
Happy Tangible Karma Day.
This week we hosted a discussion on why the ad industry isn’t doing more to protect women at work.
Our panellists suggested that some of the trade press pulls its punches in championing the best interests of the industry because they are scared of losing advertising. Boardroom insider Liam Walsh revealed: “I've heard too many conversations where the person who pays for the ad has said we'll stop running ads with that trade publication for what they said.”
Maybe that’s why you don’t see certain media companies advertising on Unmade - why can say? Luckily Unmade’s paying members give us the confidence to do our best to tell it like it is.
Producing independent analysis of the media and marketing industry that goes beyond press releases takes time and resources. If you like what we do, you can support us by becoming a paying member. Upgrade today
The last days of James Warburton
Tim Burrowes writes:
Like everybody in the industry, I’m bursting with views on what the Bruce Lehrmann defamation case has to say about how Australia’s media does business.
However, I’m going to hold back until Justice Michael Lee - a former Fairfax media copyboy, incidentally - shares his definitive verdict on Lehrmann’s character, maybe as soon as next week.
For now, a modest prediction.
Last September, Qantas boss Alan Joyce fell on his sword when the news coverage of the ACCC’s investigation into his airline’s selling flights that were already cancelled reached fever pitch, citing a need for “renewal”. Joyce had already announced his departure; he merely brought it forward slightly. In real terms, it was a low cost transaction for the airline that acted as a PR circuit breaker. The only cost was to Joyce’s ego.
Depending on what the judge has to say about the man for whom Seven West Media has been paying the rent and (allegedly) the drugs and hookers, the broadcaster will be in need of a pressure release valve.
CEO James Warburton has already announced he will be leaving SWM by the end of June, with the industry anticipating a May exit.
If the judge rules against Lehrmann, the biggest favour Warburton can do for his colleagues, and boss Kerry Stokes, is to clear his desk and deliver the renewal that day.
Trust issues
Cat McGinn, curator of HumAIn writes:
In our latest update on the HumAIn program, we’ll be examining the pitfalls and possibilities in using generative AI to make marketing content.
The session will discuss strategies for AI adoption in organisations, guidelines and safeguards for using AI-created content, navigating copyright complexities, how to build trust with customers and audiences when using genAI; the creative opportunities and productivity benefits, issues of content authentication, how to protect brand assets and how the panellists are approaching transparency and disclosure.
The panel includes Sarah Yassien, SBS’s director of corporate strategy; Gavin Chimes, ECD at creative agency Howatson + Co, and Aaron Michie, Foxtel’s head of marketing operations.
HumAIn takes place in Sydney on May 28.
The conference opens with a keynote from Jeremy Somers, the founder of the world's first AI creative agency Not Content; AI entrepreneur and incoming UNLtd boss Stephen Hunt presenting a primer on how to get started in adopting AI, and The AI Upfronts, in which innovators pitch their new AI products for the media and marketing world.
Earlybird tickets for HumAIn, with a saving of 20%, are on sale for the next ten days.
A soft landing at Saunders Street?
Tim Burrowes resumes:
The future of Paramount, owner of Network Ten, began to look a little clearer this week with details of the investment bid from Skydance Media beginning to emerge. The Skydance offer is also starting to look like the one that would have the least dramatic impact on the Australian operation of Paramount.
The complicated deal, being led by studio Skydance Media, is not quite a full takeover. CNBC reported fresh details of the plan this morning. Skydance (the makers of movies like Mission Impossible) would buy out dominant shareholder Shari Redstone and merge its studio assets with Paramount’s, but leave the company as a publicly traded one.
Others involved in the bid alongside Skydance include private equity house KKR and RedBird which is run by the former boss of NBCUniversal Jeff Shell. Skydance is run by David Ellison, son of Oracle founder Larry Ellison who is also partly funding the offer. Oracle previously emerged as a possible buyer of the US arm of TikTok and looks after its US data.
The deal would potentially see the new look Paramount get access to Oracle’s AI and data technology.
A major question mark for the future of the ANZ operation of Paramount was what would happen if loss making streaming service Paramount+ was shut down.
The usually well informed Puck writer Matt Belloni reports it could go the other way: “Many analysts think Paramount should shut down Paramount+ and simply become a content supplier for other streaming platforms. But surprisingly, I’m told the Ellison pitch to Redstone has been the opposite: He wants to supersize Par+, either through a joint venture or simply by leveraging the tech prowess of Ellison’s father, Larry. Who knows if David is bluffing to make Shari feel more comfortable parting with the company, but Par+ powered by Oracle is an intriguing idea.”
There are plenty of other permutations, including an alternative offer from Apollo Global, but Paramount has now moved into exclusive talks with Skydance.
Paramount’s local team may yet see a soft landing.
Trapdoor beckons for Unmade Index
The Unmade Index came within a fraction of hitting a new all time low yesterday.
Out tracker of listed media and marketing stocks lost 0.98% to land on 562.8 points. The index previously hit an all time low a month ago of 562.6 points.
It was a poor day at the small end of town with Sports Entertainment Group losing 17.4%, Aspermont losing 12.5% and Motio 4%.
Meanwhile, Domain lost 2.16%, which sees it in danger of slipping below the $2bn market cap milestone.
The only stock to rise was the beleagured Seven West Media which gained 2.7%.
CotW: Blip goes home
In each edition of BOTW, our friends at Little Black Book Online highlight their Campaign of the Week
LBB’s APAC reporter Casey Martin writes:
CHEP has developed a short film for Hospitals United for Sick Kids titled 'Blip: Lightyears from Home' showcasing the alienation that can be felt by children in hospitals.
In a delightful four minute story, we see Blip, a loveable space creature attempting to make his way home. It ends with Blip determined to make that journey despite the difficulties, along with a message asking consumers to buy products endorsed with the Hospitals United for Sick Kids logo.
In case you missed it…
On Tuesday we returned from the Easter break with some exclusive analysis for Unmade’s paying members. We crunched the numbers of the best and worst performing listed media and marketing stocks in the first quarter of 2024. News Corp and Enero were among the winners, Seven West Media and Nine the losers.
On Wednesday, HumAIn curator Cat MGinn invited the local industry to participate in an effort to help shape how the industry works with AI
On Thursday, we hosted a frank - and concerning - discussion about the relatively poor progress being made by the industry in creating a safe environment for women
And on Friday, reporting for ther Powering Digital Out of Home conference, we explored why outdoor advertising has such strong prospects
Time to leave you to your Saturday.
Abe Udy, Cat McGinn and I will be back with an audio-led edition of Start the Week on Monday. Amongst other things, we’ll be discussing another busy few days for AI developments which will have implications for the media and marketing world, and a new report on the state of agency pitching in Australia.
And if you haven’t had enough of my writing this weekend, I’ve written a guest article on the battle over the future of news content on Facebook which you’ll find in this morning’s edition of The Saturday Paper. A print byline still carries a big thrill.
Have a great weekend
Toodlepip…
Tim Burrowes
Publisher - Unmade
tim@unmade.media
Great article in The Saturday Paper Tim!
If Facebook withdraws from Australia altogether I wonder if that will make the regulators happy.
Google and Facebook advertising has levelled the playing field for small business advertisers.
Seems the economic devastation from the withdrawal of Facebook from Australia will bring down a lot more than our local news industry.