The head of Sky has promised to safeguard the network's news division following concerns regarding potential financial support from its American parent company.
Dana Strong, the CEO of Sky, informed employees during a recent gathering that the media corporation will continue to back Sky News in the long run, irrespective of whether the parent company Comcast maintains its financial support.
Comcast has pledged to continue financing Sky News for a decade as part of its $39 billion (£29 billion) acquisition of the UK-based broadcaster in 2018.
There have been increasing worries that the US company will shut down theheavily loss-making channel when this commitment expires.
Sky News has an annual budget of £100 million and is believed to be experiencing losses of up to £80 million. Comcast has already reduced the value of its stake in Sky by $8.6 billion.
This week, the American conglomerate started reducing staff at NBC News as part of a larger restructuring plan that involves separating its struggling cable channels like MSNBC and CNBC. Last month, Sky News reached an agreement to broadcast its international news content on MSNBC.
Sources emphasized that Ms. Strong's remarks pertained to Sky's dedication to its news operations, not an assurance of financial support from Comcast. The American company has been reached for a response.
Nevertheless, the guarantee is expected to calm worried reporters at Sky who have beenfearful of job losses.
‘Sky News 2030’
David Rhodes, the executive chairman of Sky News, revealed a significant transformation of the network earlier this year as part of a strategy to lessen its dependence on decreasing advertising income and explore alternative revenue streams like subscription models.
The shift will cause Sky News to reduce its emphasis on live and urgent news, redirecting efforts toward fields like in-depth analysis, along with podcasts and email updates.
The restructuring, humorously referred to as "Sky News 2030," has already resulted in several notable exits, such as the long-time business correspondent Ian King and morning host Kay Burley, who was part of the initial team that launched the network under Rupert Murdoch in 1989.
This month, Sky News introduced its redesigned main breakfast program featuring Sophy Ridge and Wilfred Frost, son of British television icon Sir David Frost.
At the RTS Cambridge industry conference a month ago, Mr. Rhodes stated that reliable, independent news was not disappearing but instead "transforming."
Nevertheless, he admitted that contemporary audiences tended to have greater faith in individual journalists and content producers compared to established news organizations.
The ambiguity regarding the future of Sky News occurs alongside wider staff reductions at the network as it adapts to the transition into the streaming era.
Sky, which has approximately 23,000 employees, initiated a survey last month that isexpected to result in 600 employee cuts. It is the third round of workforce reductions in less than two years.
The British media company is struggling to strengthen its standing in the market amid adrop in its traditional satellite television business.
Leaders have detailed strategies to reduce funding for new technology following a series of costly product releases, such as the Sky Glass Smart TV and a streaming set-top box.
The organization will concentrate on enhancing its current offerings while competing for members against entities such as Netflix and Disney.
A representative from Sky stated, “We are dedicated to the sustained success of Sky News. Sky is honored by the acclaimed, independent reporting it provides daily, as well as the significant advancements being achieved through the 2030 plan introduced earlier this year, which involves funding for digital platforms, video content, and high-quality journalism.”
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