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Businessweek | Screentime Cartoon Network’s Last Gasp
The irreverent animation factory once cranked out hits, talent and profits. But with David Zaslav’s retreat from streaming kids programming, the future of the network is in question.
By Felix Gillette May 13, 2025 at 11:00 AM UTC
One night in August, a group of animators headed out on foot through the streets of Burbank, California, cloaked in Mission: Impossible-style black outfits. At about 10 p.m., the crew arrived at its destination, a deserted office disconcertingly close to the neighborhood police station. For decades, the building had served as the bustling studio of Cartoon Network, which, like much of the cable universe, has fallen on challenging times. Until recently, the facility was a place where young animators daydreamed of launching their creations into the world. Now it sat empty and foreboding—another reminder of the grisly cost cuts that had been sweeping through Cartoon Network’s parent company, Warner Bros.
On the sidewalk outside, the animators hurriedly set up a generator, a projector and a laptop outfitted with video-loop software, and hit play. For the next several minutes, an animated vignette played on repeat across the building’s facade: A large disembodied hand clutching a pencil rubs out “Cartoon Network” from the top of the building, then tries to erase a nearby worker, who scampers for safety. After a brief pursuit, a pack of colleagues band together and collectively shove away the menacing pencil pusher. The film ends with an unsubtle message: “Dear studios: Don’t erase animation jobs!”
The group circulated the video online, adding to an expanding body of work bemoaning the state of the US animation industry, where concerns about unemployment are high, new series scarce, overseas outsourcing rampant and anxiety over artificial intelligence widespread. Among online commentators, much of the resulting ire has been directed at David Zaslav, the chief executive officer at Warner Bros. Discovery Inc., who’s emerged as a frequent target in Hollywood since orchestrating the stormy 2022 merger of WarnerMedia with Discovery Inc. Discovery was best known for low-cost reality-TV and crime shows—and not known at all for animation.
On Zaslav’s watch, sweeping cuts have roiled the combined company’s animation assets. Beyond the shuttering of the old Cartoon Network studios, Warner Bros. has backed out of theatrically distributing several almost-completed animated movies, including Fixed, a feature from revered cartoon auteur Genndy Tartakovsky (since picked up by Netflix); it pulled the plug on the Boomerang network’s standalone animation streaming service; it closed Rooster Teeth, a subsidiary in Austin that made several popular animated web series; and it removed numerous animated movies, classic Looney Tunes shows and Cartoon Network programs from the company’s streaming service, Max. Somewhere amid the changes, #RIPCartoonNetwork started trending on X while animation fans circulated the hashtag #FireDavidZaslav on YouTube. “Discovery came in, and it went downhill fast,” says Robert Alvarez, a retired animator who worked on popular Cartoon Network shows from the mid-’90s until 2023.
In August, Warner Bros. announced it was taking a $9.1 billion charge, writing down the value of its traditional TV networks, which include, along with the Discovery Channel and Cartoon Network, the Food Network, TBS and TNT. Warner Bros. doesn’t break out the individual financial performance of each channel, but Cartoon Network’s struggles have certainly contributed to the downturn. According to estimates from S&P Global Market Intelligence, the annual advertising revenue for Cartoon Network and Adult Swim, its spinoff animation brand for grown-ups, plummeted from $668.3 million in 2014 to $133.7 million last year.
The viability of the Cartoon Network brand in streaming doesn’t look much more promising. A few years ago, network executives were touting Max as the next natural step in Cartoon Network’s evolution. But since its debut five years ago, a string of programming misfires and increased competition from YouTube have meant that Max has largely failed to emerge as a go-to destination for young viewers. According to data from PreciseTV, a video advertising firm, only 13% of 10- to 12-year-old viewers have recently watched programming on Max, versus 32% for Hulu, 57% for Disney+ and 72% for Netflix. Among preschool audiences, the numbers for Max are even worse. The company recently decided that children’s programming is no longer a core part of Max’s strategy, further clouding Cartoon Network’s prospects.
Cartoon Network’s struggles have been playing out at a time when animation at large has arguably never been more popular. From Dog Man and Inside Out 2 to The Super Mario Bros. Movie, animated features continue to rule the box office. Bluey—a cartoon series from Australia that Cartoon Network executives once unsuccessfully sought to license—has been a huge hit for Disney+. And animated shows such as Peppa Pig and CoComelon regularly attract big audiences of youngsters on Netflix. The global anime market is projected to grow from $34.2 billion in 2024 to $60.1 billion by 2030, according to research by Jefferies Financial Group Inc. Surely, many animation fans still hope, there is room for the Cartoon Network brand to flourish once again.
Vanessa Brookman, a Warner Bros. executive in London who manages the brand abroad, says that the network has a strong, growing presence overseas and that the company is “dialing up” its investment in Adult Swim’s older-skewing shows, which jibe better with Max’s current strategy. (Both Zaslav and Sam Register, the head of Warner Bros. Animation, who now oversees Cartoon Network Studios and its diminished output of shows, declined to speak to Bloomberg Businessweek.) Brookman attributes the online uproar over the cutbacks at Cartoon Network to pent-up nostalgia for the time when it was first emerging as an engine of cutting-edge animation on par with the most esteemed anime shops in Japan. She says she’s optimistic about the network’s current direction. “It’s not maybe how the fans remember it,” the executive says. “But it’s not dead.”
About a decade after Ted Turner started CNN, he came up with an idea for a new cable channel that would air cartoons at all hours, not just on Saturday morning or after school. In 1991 he bought Hanna-Barbera Productions, a mother lode of classic series—Scooby-Doo, Yogi Bear, The Flintstones, The Jetsons and The Smurfs, among many others. The next year, he started Cartoon Network, initially reaching some 2 million US homes.
The tricky job of figuring out which of the thousands of episodes to air each day largely fell to an omnivorous consumer of pop culture named Mike Lazzo. Around Cartoon Network’s offices in Atlanta, Lazzo was hard to miss. With his shoulder-length blond hair, puckish eyes and curious wardrobe (including fishing hats and kilts), he looked more like a new wave pop star than a corporate middle manager. As they fiddled with the network’s schedule, Lazzo and his small team studied the competition. In the early ’90s, critics were buzzing over Nickelodeon, Sumner Redstone’s channel for kids, and its two growing hits, Rugrats and The Ren & Stimpy Show. Lazzo’s crew concluded that rather than just airing endless Hanna-Barbera reruns, Cartoon Network should also make shows of its own. “We went to Ted and said, ‘Give us money for originals,’ ” Lazzo recalls. “And he just threw us out of his office.”
Admittedly, Lazzo’s team had zero experience in such endeavors. What they needed was a clever idea and some minimal proof of production competence. At the time, the entertainment industry was enthralled with the drama taking place in late-night comedy. In 1992, Johnny Carson retired from The Tonight Show, touching off a fierce succession battle. That summer, HBO began airing The Larry Sanders Show, a parody of a late-night show that successfully drafted off interest in the real-world power struggle. Critics adored it, and so did Lazzo.
The Cartoon Network staff aimed to do something similar. On a threadbare budget, they cobbled together a pilot for a parody of a talk show hosted by Space Ghost—a caped, intergalactic crime fighter with laser-shooting fists who’d starred in a 1960s Hanna-Barbera series. By splicing together clips of the vintage cartoon hero with TV footage of contemporary, real-world personalities, such as comedian Carrot Top and Bill Nye (“the Science Guy”), they were able to mimic the familiar patter of a Hollywood talk show. Turner, impressed by the bizarre mashup of animation and celebrity, gave a thumbs-up to Space Ghost Coast to Coast—which would go on to run for 11 critically admired seasons—and agreed to fund more series.
For years, American cartoons had been mired in mediocrity. For much of the 1980s, shows based on toy lines from Transformers to G.I. Joe crowded the airwaves. The Cartoon Network team thought the merchandise-driven shows lacked the feral ingenuity of animation’s early years, when imaginative, wigged-out directors like Tex Avery and Chuck Jones ruled the rambunctious medium. It was time, they agreed, to re-embrace a creator-driven approach.
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