The Hollywood Reporter
It wasn’t that David Zaslav wasn’t cautioned. He was, explicitly, in a December 2022 conversation with CAA’s Bryan Lourd, who said that damaging the relatively small but beloved Turner Classic Movies would lead to backlash from “a lot of important people”— people who Zaslav most admired and wanted to be admired by, such as Steven Spielberg, Martin Scorsese and Paul Thomas Anderson.
But while Zaslav repeatedly declared and continues to declare his love for TCM, by the time that conversation took place the channel had been undergoing months of layoffs and budget reductions that ultimately led top executives to depart on June 20. Among them: Charles Tabesh, the longtime programmer considered by many to be the heart of the network.
In the aftermath of the predicted backlash, WBD is announcing today that creative oversight of the channel will move from the division that imposed those cuts, headed by WBD TV networks chief content officer chief Kathleen Finch, to filmmaker friendly Warner Bros. Pictures bosses Michael De Luca and Pamela Abdy, as previously reported by The Hollywood Reporter. “Part of this is the creation of a more sustainable structure behind the screen, one that benefits from the vast resources and promotional engine of WBD’s networks group, so that TCM is set up for long-term success,” said a Warner Bros. Discovery spokesperson who confirmed the moves.
The directors who rushed to TCM’s defense are pledging to be involved meaningfully in nurturing the channel — though obviously they can do nothing to stem the erosion of cable audiences at the root of the chaos. “We have already begun working on ideas with Mike and Pam, both true film enthusiasts who share a passion and reverence for classic cinema that is the hallmark of the TCM community. This unique arrangement, initiated by David Zaslav, reflects his commitment to honoring the TCM legacy while also involving us on curation and programming,” Spielberg, Scorsese, and Anderson said in a statement to THR. Added De Luca and Abdy: “TCM is a cultural treasure, and we are honored to help steer the future direction of this beloved brand with the partnership of three of the most iconic filmmakers of our time.”
Critical to the sense that this will be a meaningful reset is the fact that Tabesh will be returning. While financial decisions at TCM will still rest with Finch’s division, the potential for conflict should be minimized, assuming everyone can finally read the room.
The filmmakers’ special love for TCM was evident in 2018, when new owners at AT&T shut down TCM’s FilmStruck streaming service. Martin Scorsese called then WarnerMedia CEO John Stankey to air his dismay and express his support for the channel. CAA’s Bryan Lourd called Pola Changnon, then TCM’s executive vp and general manager, and said one of his important clients – Anderson, in this case – was also anxious about the fate of the network. Anderson, Lourd and Changnon met for a drink at the Polo Lounge and a line of communication was established.
Then came the deal that ushered in Discovery chief Zaslav as CEO of Warner Bros. Discovery. As he had positioned himself as an ardent TCM fan, an insider says, “We all thought maybe fortune is finally smiling upon us. It just didn’t work out that way.”
Even as Zaslav proclaimed his devotion to TCM, moves were underway that insiders believed would dismantle the bespoke but beloved channel. After WBD ordered TCM to cut a staggering two-thirds of its salary budget, the leadership team, including Changnon and Tabesh, departed on June 20 – some taking buyouts, some agreeing to be laid off. The leaders are said to have concluded that they couldn’t reach the goal without getting rid of themselves. Despite the cuts to areas like marketing and distribution, WBD claims that it is spending one-third more on TCM content this year over last year, though that comes as a surprise to some TCM sources.
The backlash was swift. Zaslav then called Scorsese, who called Spielberg, who called Anderson; eventually the four men ended up on a Zoom call that the directors found reassuring. According to a source, they discussed ways in which they would get more involved to support the channel; one of Zaslav’s wishes was to get more celebrities booked to talk about film. Spielberg, Scorsese and Anderson issued a statement that they were heartened by the talks.
Laden with debt and desperately looking to cut costs, WBD management has been chipping away at the channel for some time. “By last fall, they were already cutting people, trying to shrink down the human footprint,” says one informed source. WBD began looking to save money by creating “centers of excellence” – for example, eliminating a marketing executive dedicated exclusively to TCM and assigning the network to a team of marketing staff who also handled other channels, such as HGTV.
“What that shows is a fundamental misunderstanding or willful ignorance about how TCM works,” says an insider. “TCM is more than just scheduling films. We’re trying to present these movies in a way that honors the filmmakers and contextualizes the time in which they were made. That comes from us, not just someone who the day before was working on MILF Manor.” The Warner Bros. statement seems to indicate this aspect of the re-org will remain not change.
In November, TCM staffers were told to move out of the building that had been the network’s home for 20 years. The vintage posters — for John Ford’s Tobacco Road, among others — and archival photos that hung on the walls? WBD wanted them given away or thrown out. “It’s stuff that makes you feel proud of where you work,” says one insider. “Yet another thing they wanted to erase from our identity.” Says another: “TCM got moved into a temporary space that looks like a call center. It’s plastic and cold.” And in the new quarters, WBD imposed the “agile seating” model in which employees are not assigned a permanent office or cubicle. “They’re siloing us up,” this person says. “We are no longer a group. We’re not going to sit together.”
And the changes were not over. Before Christmas, TCM executives heard rumblings that Finch, a favored Zaslav exec who joined the company from Discovery, might start “meddling with programming,” as one TCM executive puts it. TCM leaders were uneasy that an executive who was handling Discovery’s middle- to low-brow reality shows would now oversee what they regarded as a jewel that had to be tended by people with a deep interest in and understanding of film history. Specifically, TCM execs believed that the plan was to have Tabesh report to Julie Taylor, Finch’s head of content strategy, rather than to Changnon.
According to this source, Changnon called Lourd, who responded that he was going to see Zaslav the next day and would convey a message — diplomatically, no doubt: “If you hurt TCM, a lot of important people are going to come out of the woodwork.” Sources say Spielberg also weighed in with Zaslav. Word filtered down that Zaslav then called Finch, expressing displeasure that people were telling him how to run his business. But Tabesh was not reassigned.
Spielberg and Anderson agreed to appear with Zaslav on a panel at the TCM Film Festival in April after WBD donated substantial money to the Film Foundation, Scorsese’s film nonprofit, where all three filmmakers are part of a 19-member board dedicated to restoring and exhibiting classic films. “The best press that David Zaslav got all year was at the TCM festival,” says one person involved in the discussions about the network. But the hope that Zaslav would protect the network from more cuts soon faded. Shortly after that appearance, TCM executives were directed to slash about $3 million from their budget. “Given that the network is tiny to begin with, $3 million is a lot,” says one TCM veteran.
One plan, since dropped, was to drop the two- to three-minute outros–segments that run after a film airs with a wrap-up from the hosts providing context. The network’s proposed changes didn’t deliver anything close to $3 million but TCM insiders were hoping they would be seen as a good-faith effort.
But then the channel was ordered to cut its salary budget by a staggering two-thirds. Changon took a buyout and Tabesh was laid off after 25 years. In all, five top executives departed, including Genevieve McGillicuddy, who ran the film festival, Anne Wilson, the head of studio production and Dexter Fedor, head of marketing and brand creative. Other individual contributors across marketing, design and production also left. “We were just bereft,” says one who remained. “We knew this was the end. If we don’t have Charlie to guide us, I don’t know how we were going to survive.”
Tabesh is expected to be able to bring some of his team back with him when he returns. One TCM source was pleasantly surprised that Zaslav had reversed course. “I didn’t think he’d listen,” the TCM source says. “I didn’t think he’d bring back the most important person at the channel.”
“TCM does so much with so little,” says one TCM veteran. “We’ve been so tiny and we’ve managed to run a cruise, a film fest, so many things. We’re very good stewards of the money as well as the movies. We just love this thing so much.”
Rebecca Keegan contributed to this report.
Source: Hollywood Reporter
