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As Vice Moves More to TV, It Tries to Keep Brash Voice
The live music at the Vice Media party on Friday shook the room. Shane Smith, Vice’s chief executive, was standing near the stage — with a drink in his hand, pants sagging, tattoos showing — watching the rapper-cum-chef Action Bronson make pizzas.
The event was an after-party, a happy-hour bacchanal for the hundreds of guests who had come for Vice’s annual presentation to advertisers and agencies that afternoon, part of the annual frenzy for ad dollars called the Digital Content NewFronts. Mr. Smith had spoken there for all of five minutes before running a slam-bang highlight reel of the company’s shows that had titles like “Weediquette” and “Gaycation.”
In the last year, Vice has secured $500 million in financing and signed deals worth hundreds of millions of dollars with established media companies like HBO that are eager to engage the young viewers Vice attracts. Vice said it was now worth at least $4 billion, with nearly $1 billion in projected revenue for 2015. It is a long way from Vice’s humble start as a free magazine in 1994.
But even as cash flows freely in Vice’s direction, the company is trying to keep its brash, insurgent image. At the party on Friday, it plied guests with beers and cocktails. Its apparently unrehearsed presentation to advertisers was peppered with expletives. At one point, the director Spike Jonze, a longtime Vice collaborator, asked on stage if Mr. Smith had been drinking.
“My assistant tried to cut me off,” Mr. Smith replied. “I’m on buzz control.”
Now, Vice is on the verge of getting its own cable channel, which would give the company a traditional outlet for its slate of non-news programming. If all goes as planned, A&E Networks, the television group owned by Hearst and Disney, will turn over its History Channel spinoff, H2, to Vice.
The deal’s announcement was expected last week, but not all of A&E’s distribution partners — the cable and satellite TV companies that carry the network’s channels — have signed off on the change, according to a person familiar with the negotiations who spoke on the condition of anonymity because the talks were private.
A cable channel would be a further step in a transformation for Vice, from bad-boy digital upstart to mainstream media company.
Keen for the core audience of young men who come to Vice, media giants like 21st Century Fox, Time Warner and Disney all showed interest in the company last year. Vice ultimately secured $500 million in financing from A&E Networks and Technology Crossover Ventures, a Silicon Valley venture capital firm that has invested in Facebook and Netflix.
Those investments valued Vice at more than $2.5 billion. (In 2013, Fox bought a 5 percent stake for $70 million.)
Then in March, HBO announced that it had signed a multiyear deal to broadcast a daily half-hour Vice newscast. Vice already produces a weekly newsmagazine show, called “Vice,” for the network. That show will extend its run through 2018, with an increase to 35 episodes a year, from 14.
Michael Lombardo, HBO’s president for programming, said when the deal was announced that it was “certainly one of our biggest investments with hours on the air.”
Vice, based in Brooklyn, also recently signed a multiyear $100 million deal with Rogers Communications, a Canadian media conglomerate, to produce original content for TV, smartphone and desktop viewers.
Vice’s finances are private, but according to an internal document reviewed by The New York Times and verified by a person familiar with the company’s financials, the company is on track to make about $915 million in revenue this year.
It brought in $545 million in a strong first quarter, which included portions of the new HBO deal and the Rogers deal, according to the document. More of its revenue now comes from these types of content partnerships, compared with the branded content deals that made up much of its revenue a year ago, the company said.
Mr. Smith said the company was worth at least $4 billion. If the valuation gets much higher, he said he would consider taking the company public.
“I don’t care about money; we have plenty of money,” Mr. Smith, who is Vice’s biggest shareholder, said in an interview after the presentation on Friday. “I care about strategic deals.”
In the United States, Vice Media had 35.2 million unique visitors across its sites in March, according to comScore.
The third season of Vice’s weekly HBO show has averaged 1.8 million viewers per episode, including reruns, through April 12, according to Brad Adgate, the director of research at Horizon Media. (Vice said the show attracted three million weekly viewers when repeat broadcasts, online and on-demand viewings were included.)
For years, Mr. Smith has criticized traditional TV, calling it slow and unable to draw younger viewers. But if all the deals Vice has struck are to work out, Mr. Smith may have to play more by the rules of traditional media. James Murdoch, Rupert Murdoch’s son and a member of Vice’s board, was at the company’s presentation on Friday, as were other top media executives.
“They know they need people like me to help them, but they can’t get out of their own way,” Mr. Smith said in the interview Friday. “My only real frustration is we’re used to being incredibly dynamic, and they’re not incredibly dynamic.”
With its own television channel in the United States, Vice would have something it has long coveted even as traditional media companies are looking beyond TV. Last year, Vice’s deal with Time Warner failed in part because the two companies could not agree on how much control Vice would have over a 24-hour television network.
Vice said it intended to fill its new channel with non-news programming. The company plans to have sports shows, fashion shows, food shows and the “Gaycation” travel show with the actress Ellen Page. It is also in talks with Kanye West about a show.
It remains to be seen whether Vice’s audience will watch a traditional cable channel. Still, Vice has effectively presold all of the ad spots to two of the biggest advertising agencies for the first three years, Mr. Smith said.
In the meantime, Mr. Smith is enjoying Vice’s newfound role as a potential savior of traditional media companies.
“I’m a C.E.O. of a content company,” Mr. Smith said before he caught a flight to Las Vegas for the boxing match on Saturday between Floyd Mayweather Jr. and Manny Pacquiao. “If it stops being fun, then why are you doing it?”
William Pfaff, Critic of American Foreign Policy, Dies at 86
Mr. Pfaff was an international affairs columnist and author who found Washington’s intervention in world affairs often misguided.
How Some Men Fake an 80-Hour Workweek, and Why It Matters
Imagine an elite professional services firm with a high-performing, workaholic culture. Everyone is expected to turn on a dime to serve a client, travel at a moment’s notice, and be available pretty much every evening and weekend. It can make for a grueling work life, but at the highest levels of accounting, law, investment banking and consulting firms, it is just the way things are.
Except for one dirty little secret: Some of the people ostensibly turning in those 80- or 90-hour workweeks, particularly men, may just be faking it.
Many of them were, at least, at one elite consulting firm studied by Erin Reid, a professor at Boston University’s Questrom School of Business. It’s impossible to know if what she learned at that unidentified consulting firm applies across the world of work more broadly. But her research, published in the academic journal Organization Science, offers a way to understand how the professional world differs between men and women, and some of the ways a hard-charging culture that emphasizes long hours above all can make some companies worse off.
Ms. Reid interviewed more than 100 people in the American offices of a global consulting firm and had access to performance reviews and internal human resources documents. At the firm there was a strong culture around long hours and responding to clients promptly.
“When the client needs me to be somewhere, I just have to be there,” said one of the consultants Ms. Reid interviewed. “And if you can’t be there, it’s probably because you’ve got another client meeting at the same time. You know it’s tough to say I can’t be there because my son had a Cub Scout meeting.”
Some people fully embraced this culture and put in the long hours, and they tended to be top performers. Others openly pushed back against it, insisting upon lighter and more flexible work hours, or less travel; they were punished in their performance reviews.
The third group is most interesting. Some 31 percent of the men and 11 percent of the women whose records Ms. Reid examined managed to achieve the benefits of a more moderate work schedule without explicitly asking for it.
They made an effort to line up clients who were local, reducing the need for travel. When they skipped work to spend time with their children or spouse, they didn’t call attention to it. One team on which several members had small children agreed among themselves to cover for one another so that everyone could have more flexible hours.
A male junior manager described working to have repeat consulting engagements with a company near enough to his home that he could take care of it with day trips. “I try to head out by 5, get home at 5:30, have dinner, play with my daughter,” he said, adding that he generally kept weekend work down to two hours of catching up on email.
Despite the limited hours, he said: “I know what clients are expecting. So I deliver above that.” He received a high performance review and a promotion.
What is fascinating about the firm Ms. Reid studied is that these people, who in her terminology were “passing” as workaholics, received performance reviews that were as strong as their hyper-ambitious colleagues. For people who were good at faking it, there was no real damage done by their lighter workloads.
It calls to mind the episode of “Seinfeld” in which George Costanza leaves his car in the parking lot at Yankee Stadium, where he works, and gets a promotion because his boss sees the car and thinks he is getting to work earlier and staying later than anyone else. (The strategy goes awry for him, and is not recommended for any aspiring partners in a consulting firm.)
A second finding is that women, particularly those with young children, were much more likely to request greater flexibility through more formal means, such as returning from maternity leave with an explicitly reduced schedule. Men who requested a paternity leave seemed to be punished come review time, and so may have felt more need to take time to spend with their families through those unofficial methods.
The result of this is easy to see: Those specifically requesting a lighter workload, who were disproportionately women, suffered in their performance reviews; those who took a lighter workload more discreetly didn’t suffer. The maxim of “ask forgiveness, not permission” seemed to apply.
It would be dangerous to extrapolate too much from a study at one firm, but Ms. Reid said in an interview that since publishing a summary of her research in Harvard Business Review she has heard from people in a variety of industries describing the same dynamic.
High-octane professional service firms are that way for a reason, and no one would doubt that insane hours and lots of travel can be necessary if you’re a lawyer on the verge of a big trial, an accountant right before tax day or an investment banker advising on a huge merger.
But the fact that the consultants who quietly lightened their workload did just as well in their performance reviews as those who were truly working 80 or more hours a week suggests that in normal times, heavy workloads may be more about signaling devotion to a firm than really being more productive. The person working 80 hours isn’t necessarily serving clients any better than the person working 50.
In other words, maybe the real problem isn’t men faking greater devotion to their jobs. Maybe it’s that too many companies reward the wrong things, favoring the illusion of extraordinary effort over actual productivity.
Edward Chambers, Early Leader in Community Organizing, Dies at 85
A lapsed seminarian, Mr. Chambers succeeded Saul Alinsky as leader of the social justice umbrella group Industrial Areas Foundation.
Cher and Marc Jacobs
The 2015 Met Gala has only officially begun, but there's a clear leader in the race for best couple, no small feat at an event that threatens to sap Hollywood of every celebrity it has for the duration of an East Coast evening.
That would be Marc Jacobs and his surprise guest (who, by some miracle, remained under wraps until their red carpet debut), Cher.
“This has been a dream of mine for a very, very long time,” Mr. Jacobs said.
It is Cher's first appearance at the Met Gala since 1997, when she arrived on the arm of Donatella Versace.
– MATTHEW SCHNEIER
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