TBS chief warns of cuts ahead

Turner Broadcasting System (TBS) CEO John Martin has accepted that some of the company’s brands are struggling and that cuts will be necessary.

Martin, who took over in January, told staff in a memo that TBS is planning to assess “every part of the company” to strengthen its business, adding that he would be “surprised” if this did not result in staff changes.

“We are rolling out a global initiative to maximise performance across the entire company: Turner 2020. As part of this process, we will assess every part of the company to ensure it is optimised against our strategic priorities, reducing spending and maximising growth and profitability,” he said.

“To commit to staying top of market, we need to prioritise programming, monetisation and innovation investment while reducing spending in less-impactful areas.”

There have already been a string of management changes at TBS since Martin replaced Phil Kent as chairman and CEO of the parent company in January.

Martin, who previously oversaw all of Time Warner’s finance, accounting, mergers and acquisitions, internal audit, investor relations, treasury and tax matters, took charge of a business housing channels including Cartoon Network, Boomerang, CNN, Adult Swim, TCM, TNT and TruTV.

David Levy, head of sales and distribution, was promoted to the post of TBS president soon after Kent announced his departure last year.

Meanwhile, Steve Koonin, president of Turner Entertainment Networks, and Stuart Snyder, president and chief operating officer of Time Warner’s Turner Animation unit, have both left the company,  along with two other execs.

Martin admitted that some of its highest-profile networks have “experienced ratings headwinds” recently and that this was something he wanted to put right.

He said: “We’re increasing investments in programming and content to keep our audiences engaged and bring new viewers to our brands.

“We are ramping up collaboration as we develop plans to elevate our global position in the kids’ business. And we’ll continue to invest in technology to create compelling, useable, scalable consumer experiences.”