In today’s Digest, we discuss media giants grappling with costs, the UK government considering social media time limits for children, as well as a global study comparing the impact of skippable and non-skippable ads.

Media Giants Struggle With Costs: Warner Bros Discovery to Split Streaming and TV Units; Paramount to Cut Additional 3.5% of US Workforce Amid Linear TV Decline 

Warner Bros Discovery has announced it will be restructuring, dividing its operations into two publicly traded entities. This move will see the separation of its streaming and studio business from its traditional television networks, including CNN and Discovery. 

The restructuring aims to unlock shareholder value and create more focused growth strategies for each business. It reflects a broader industry trend, as media giants look to separate fast growing digital businesses from declining linear TV operations.

Meanwhile, Paramount Global is implementing another round of layoffs, cutting 3.5% of its US workforce as part of continued restructuring efforts. The announcement, made in an internal memo from Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins, follows last year’s broader workforce reduction of 15%. The company cited ongoing declines in linear TV and broader macroeconomic pressures as driving forces behind the decision. 

The execs wrote: “As we navigate the continued industry-wide linear declines and dynamic macro-economic environment, while prioritising investments in our growing streaming business, we are taking the hard, but necessary steps to further streamline our organisation starting this week.”

UK Government Weighs Up Social Media Time Limits for Children

The UK government is reportedly considering new online safety measures that would impose time limits on children’s use of social media, including a proposed two-hour daily cap on individual social apps, and a 10:00 pm curfew.

Technology Secretary Peter Kyle confirmed the proposals are under review, citing concerns over the "addictive nature" of certain apps and smartphones during an appearance on the BBC’s Sunday with Laura Kuenssberg. However, campaigners have criticised the government for delays in introducing legislation to better protect children online.

MAGNA and Snap Unveil Global Study on Skippable vs Non-Skippable Ads

A new global study by IPG Mediabrands’ MAGNA in collaboration with Snap, sheds light on how skippable and non-skippable ad formats impact brand performance and where marketers can gain the most traction. Spanning five countries and nine industry verticals, the research recommends a hybrid ad strategy. The combination of skippable and non-skippable ads consistently outperformed either format alone across key metrics such as brand interest and preference.

According to the study, skippable ads resonate with users: 81% of global participants appreciated having control over their viewing experience, with UK and KSA (86% each) showing the strongest preference. In France and the UK (both 41%), people skip when an ad is too long, while users in Canada (48%) and the US (51%) fast forward when ads aren’t relevant to them.

Entertaining content remains key, 64% of users across all markets reported being willing to watch a non-skippable ad if the content is engaging. 

The findings reinforce that nuanced, audience-first planning backed by format flexibility and smart creativity is essential in navigating evolving viewer expectations.