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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.

Photo
 
At the Vice after-party, the rapper Action Bronson, a host of a Vice show, made a pizza. Credit Jesse Dittmar for The New York Times

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.

Photo
 
Vice showed a highlight reel of its TV series at the NewFronts last week in New York. Credit Jesse Dittmar for The New York Times

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?”

Jozef Paczynski, Inmate Barber to Auschwitz Commandant, Dies at 95

Mr. Paczynski was one of the concentration camp’s longest surviving inmates and served as the personal barber to its Nazi commandant Rudolf Höss.

Take the Money and Run

The career criminals in genre novels don’t have money problems. If they need some, they just go out and steal it. But such financial transactions can backfire, which is what happened back in 2004 when the Texas gang in Michael

Rhapsody, a Lofty Literary Journal, Perused at 39,000 Feet

Photo
 
United’s first-class and business fliers get Rhapsody, its high-minded in-flight magazine, seen here at its office in Brooklyn. Credit Sam Hodgson for The New York Times

Last summer at a writers’ workshop in Oregon, the novelists Anthony Doerr, Karen Russell and Elissa Schappell were chatting over cocktails when they realized they had all published work in the same magazine. It wasn’t one of the usual literary outlets, like Tin House, The Paris Review or The New Yorker. It was Rhapsody, an in-flight magazine for United Airlines.

It seemed like a weird coincidence. Then again, considering Rhapsody’s growing roster of A-list fiction writers, maybe not. Since its first issue hit plane cabins a year and a half ago, Rhapsody has published original works by literary stars like Joyce Carol Oates, Rick Moody, Amy Bloom, Emma Straub and Mr. Doerr, who won the Pulitzer Prize for fiction two weeks ago.

As airlines try to distinguish their high-end service with luxuries like private sleeping chambers, showers, butler service and meals from five-star chefs, United Airlines is offering a loftier, more cerebral amenity to its first-class and business-class passengers: elegant prose by prominent novelists. There are no airport maps or disheartening lists of in-flight meal and entertainment options in Rhapsody. Instead, the magazine has published ruminative first-person travel accounts, cultural dispatches and probing essays about flight by more than 30 literary fiction writers.

 

Photo
 
Sean Manning, executive editor of Rhapsody, which publishes works by the likes of Joyce Carol Oates, Amy Bloom and Anthony Doerr, who won a Pulitzer Prize. Credit Sam Hodgson for The New York Times

 

An airline might seem like an odd literary patron. But as publishers and writers look for new ways to reach readers in a shaky retail climate, many have formed corporate alliances with transit companies, including American Airlines, JetBlue and Amtrak, that provide a captive audience.

Mark Krolick, United Airlines’ managing director of marketing and product development, said the quality of the writing in Rhapsody brings a patina of sophistication to its first-class service, along with other opulent touches like mood lighting, soft music and a branded scent.

“The high-end leisure or business-class traveler has higher expectations, even in the entertainment we provide,” he said.

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Some of Rhapsody’s contributing writers say they were lured by the promise of free airfare and luxury accommodations provided by United, as well as exposure to an elite audience of some two million first-class and business-class travelers.

“It’s not your normal Park Slope Community Bookstore types who read Rhapsody,” Mr. Moody, author of the 1994 novel “The Ice Storm,” who wrote an introspective, philosophical piece about traveling to the Aran Islands of Ireland for Rhapsody, said in an email. “I’m not sure I myself am in that Rhapsody demographic, but I would like them to buy my books one day.”

In addition to offering travel perks, the magazine pays well and gives writers freedom, within reason, to choose their subject matter and write with style. Certain genres of flight stories are off limits, naturally: no plane crashes or woeful tales of lost luggage or rude flight attendants, and nothing too risqué.

“We’re not going to have someone write about joining the mile-high club,” said Jordan Heller, the editor in chief of Rhapsody. “Despite those restrictions, we’ve managed to come up with a lot of high-minded literary content.”

Guiding writers toward the right idea occasionally requires some gentle prodding. When Rhapsody’s executive editor asked Ms. Russell to contribute an essay about a memorable flight experience, she first pitched a story about the time she was chaperoning a group of teenagers on a trip to Europe, and their delayed plane sat at the airport in New York for several hours while other passengers got progressively drunker.

“He pointed out that disaster flights are not what people want to read about when they’re in transit, and very diplomatically suggested that maybe people want to read something that casts air travel in a more positive light,” said Ms. Russell, whose novel “Swamplandia!” was a finalist for the 2012 Pulitzer Prize.

She turned in a nostalgia-tinged essay about her first flight on a trip to Disney World when she was 6. “The Magic Kingdom was an anticlimax,” she wrote. “What ride could compare to that first flight?”

Ms. Oates also wrote about her first flight, in a tiny yellow propeller plane piloted by her father. The novelist Joyce Maynard told of the constant disappointment of never seeing her books in airport bookstores and the thrill of finally spotting a fellow plane passenger reading her novel “Labor Day.” Emily St. John Mandel, who was a finalist for the National Book Award in fiction last year, wrote about agonizing over which books to bring on a long flight.

“There’s nobody that’s looked down their noses at us as an in-flight magazine,” said Sean Manning, the magazine’s executive editor. “As big as these people are in the literary world, there’s still this untapped audience for them of luxury travelers.”

United is one of a handful of companies showcasing work by literary writers as a way to elevate their brands and engage customers. Chipotle has printed original work from writers like Toni Morrison, Jeffrey Eugenides and Barbara Kingsolver on its disposable cups and paper bags. The eyeglass company Warby Parker hosts parties for authors and sells books from 14 independent publishers in its stores.

JetBlue offers around 40 e-books from HarperCollins and Penguin Random House on its free wireless network, allowing passengers to read free samples and buy and download books. JetBlue will start offering 11 digital titles from Simon & Schuster soon. Amtrak recently forged an alliance with Penguin Random House to provide free digital samples from 28 popular titles, which passengers can buy and download over Amtrak’s admittedly spotty wireless service.

Amtrak is becoming an incubator for literary talent in its own right. Last year, it started a residency program, offering writers a free long-distance train trip and complimentary food. More than 16,000 writers applied and 24 made the cut.

Like Amtrak, Rhapsody has found that writers are eager to get onboard. On a rainy spring afternoon, Rhapsody’s editorial staff sat around a conference table discussing the June issue, which will feature an essay by the novelist Hannah Pittard and an unpublished short story by the late Elmore Leonard.

“Do you have that photo of Elmore Leonard? Can I see it?” Mr. Heller, the editor in chief, asked Rhapsody’s design director, Christos Hannides. Mr. Hannides slid it across the table and noted that they also had a photograph of cowboy spurs. “It’s very simple; it won’t take away from the literature,” he said.

Rhapsody’s office, an open space with exposed pipes and a vaulted brick ceiling, sits in Dumbo at the epicenter of literary Brooklyn, in the same converted tea warehouse as the literary journal N+1 and the digital publisher Atavist. Two of the magazine’s seven staff members hold graduate degrees in creative writing. Mr. Manning, the executive editor, has published a memoir and edited five literary anthologies.

Mr. Manning said Rhapsody was conceived from the start as a place for literary novelists to write with voice and style, and nobody had been put off that their work would live in plane cabins and airport lounges.

Still, some contributors say they wish the magazine were more widely circulated.

“I would love it if I could read it,” said Ms. Schappell, a Brooklyn-based novelist who wrote a feature story for Rhapsody’s inaugural issue. “But I never fly first class.”

The Uphill Battle to Better Regulate Formaldehyde

WASHINGTON — A decade after emergency trailers meant to shelter Hurricane Katrina victims instead caused burning eyes, sore throats and other more serious ailments, the Environmental Protection Agency is on the verge of regulating the culprit: formaldehyde, a chemical that can be found in commonplace things like clothes and furniture.

But an unusual assortment of players, including furniture makers, the Chinese government, Republicans from states with a large base of furniture manufacturing and even some Democrats who championed early regulatory efforts, have questioned the E.P.A. proposal. The sustained opposition has held sway, as the agency is now preparing to ease key testing requirements before it releases the landmark federal health standard.

The E.P.A.’s five-year effort to adopt this rule offers another example of how industry opposition can delay and hamper attempts by the federal government to issue regulations, even to control substances known to be harmful to human health.

Continue reading the main story
 

Document: The Formaldehyde Fight

Formaldehyde is a known carcinogen that can also cause respiratory ailments like asthma, but the potential of long-term exposure to cause cancers like myeloid leukemia is less well understood.

The E.P.A.’s decision would be the first time that the federal government has regulated formaldehyde inside most American homes.

“The stakes are high for public health,” said Tom Neltner, senior adviser for regulatory affairs at the National Center for Healthy Housing, who has closely monitored the debate over the rules. “What we can’t have here is an outcome that fails to confront the health threat we all know exists.”

The proposal would not ban formaldehyde — commonly used as an ingredient in wood glue in furniture and flooring — but it would impose rules that prevent dangerous levels of the chemical’s vapors from those products, and would set testing standards to ensure that products sold in the United States comply with those limits. The debate has sharpened in the face of growing concern about the safety of formaldehyde-treated flooring imported from Asia, especially China.

What is certain is that a lot of money is at stake: American companies sell billions of dollars’ worth of wood products each year that contain formaldehyde, and some argue that the proposed regulation would impose unfair costs and restrictions.

Determined to block the agency’s rule as proposed, these industry players have turned to the White House, members of Congress and top E.P.A. officials, pressing them to roll back the testing requirements in particular, calling them redundant and too expensive.

“There are potentially over a million manufacturing jobs that will be impacted if the proposed rule is finalized without changes,” wrote Bill Perdue, the chief lobbyist at the American Home Furnishings Alliance, a leading critic of the testing requirements in the proposed regulation, in one letter to the E.P.A.

Industry opposition helped create an odd alignment of forces working to thwart the rule. The White House moved to strike out key aspects of the proposal. Subsequent appeals for more changes were voiced by players as varied as Senator Barbara Boxer, Democrat of California, and Senator Roger Wicker, Republican of Mississippi, as well as furniture industry lobbyists.

Hurricane Katrina in 2005 helped ignite the public debate over formaldehyde, after the deadly storm destroyed or damaged hundreds of thousands of homes along the Gulf of Mexico, forcing families into temporary trailers provided by the Federal Emergency Management Agency.

The displaced storm victims quickly began reporting respiratory problems, burning eyes and other issues, and tests then confirmed high levels of formaldehyde fumes leaking into the air inside the trailers, which in many cases had been hastily constructed.

Public health advocates petitioned the E.P.A. to issue limits on formaldehyde in building materials and furniture used in homes, given that limits already existed for exposure in workplaces. But three years after the storm, only California had issued such limits.

Industry groups like the American Chemistry Council have repeatedly challenged the science linking formaldehyde to cancer, a position championed by David Vitter, the Republican senator from Louisiana, who is a major recipient of chemical industry campaign contributions, and whom environmental groups have mockingly nicknamed “Senator Formaldehyde.”

Continue reading the main story

Formaldehyde in Laminate Flooring

In laminate flooring, formaldehyde is used as a bonding agent in the fiberboard (or other composite wood) core layer and may also be used in glues that bind layers together. Concerns were raised in March when certain laminate flooring imported from China was reported to contain levels of formaldehyde far exceeding the limit permitted by California.

Typical

laminate

flooring

CLEAR FINISH LAYER

Often made of melamine resin

PATTERN LAYER

Paper printed to resemble wood,

or a thin wood veneer

GLUE

Layers may be bound using

formaldehyde-based glues

CORE LAYER

Fiberboard or other

composite, formed using

formaldehyde-based adhesives

BASE LAYER

Moisture-resistant vapor barrier

What is formaldehyde?

Formaldehyde is a common chemical used in many industrial and household products as an adhesive, bonding agent or preservative. It is classified as a volatile organic compound. The term volatile means that, at room temperature, formaldehyde will vaporize, or become a gas. Products made with formaldehyde tend to release this gas into the air. If breathed in large quantities, it may cause health problems.

WHERE IT IS COMMONLY FOUND

POTENTIAL HEALTH RISKS

Pressed-wood and composite wood products

Wallpaper and paints

Spray foam insulation used in construction

Commercial wood floor finishes

Crease-resistant fabrics

In cigarette smoke, or in the fumes from combustion of other materials, including wood, oil and gasoline.

Exposure to formaldehyde in sufficient amounts may cause eye, throat or skin irritation, allergic reactions, and respiratory problems like coughing, wheezing or asthma.

Long-term exposure to high levels has been associated with cancer in humans and laboratory animals.

Exposure to formaldehyde may affect some people more severely than others.

By 2010, public health advocates and some industry groups secured bipartisan support in Congress for legislation that ordered the E.P.A. to issue federal rules that largely mirrored California’s restrictions. At the time, concerns were rising over the growing number of lower-priced furniture imports from Asia that might include contaminated products, while also hurting sales of American-made products.

Maneuvering began almost immediately after the E.P.A. prepared draft rules to formally enact the new standards.

White House records show at least five meetings in mid-2012 with industry executives — kitchen cabinet makers, chemical manufacturers, furniture trade associations and their lobbyists, like Brock R. Landry, of the Venable law firm. These parties, along with Senator Vitter’s office, appealed to top administration officials, asking them to intervene to roll back the E.P.A. proposal.

The White House Office of Management and Budget, which reviews major federal regulations before they are adopted, apparently agreed. After the White House review, the E.P.A. “redlined” many of the estimates of the monetary benefits that would be gained by reductions in related health ailments, like asthma and fertility issues, documents reviewed by The New York Times show.

As a result, the estimated benefit of the proposed rule dropped to $48 million a year, from as much as $278 million a year. The much-reduced amount deeply weakened the agency’s justification for the sometimes costly new testing that would be required under the new rules, a federal official involved in the effort said.

“It’s a redlining blood bath,” said Lisa Heinzerling, a Georgetown University Law School professor and a former E.P.A. official, using the Washington phrase to describe when language is stricken from a proposed rule. “Almost the entire discussion of these potential benefits was excised.”

Senator Vitter’s staff was pleased.

“That’s a huge difference,” said Luke Bolar, a spokesman for Mr. Vitter, of the reduced estimated financial benefits, saying the change was “clearly highlighting more mismanagement” at the E.P.A.

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The review’s outcome galvanized opponents in the furniture industry. They then targeted a provision that mandated new testing of laminated wood, a cheaper alternative to hardwood. (The California standard on which the law was based did not require such testing.)

But E.P.A. scientists had concluded that these laminate products — millions of which are sold annually in the United States — posed a particular risk. They said that when thin layers of wood, also known as laminate or veneer, are added to furniture or flooring in the final stages of manufacturing, the resulting product can generate dangerous levels of fumes from often-used formaldehyde-based glues.

Industry executives, outraged by what they considered an unnecessary and financially burdensome level of testing, turned every lever within reach to get the requirement removed. It would be particularly onerous, they argued, for small manufacturers that would have to repeatedly interrupt their work to do expensive new testing. The E.P.A. estimated that the expanded requirements for laminate products would cost the furniture industry tens of millions of dollars annually, while the industry said that the proposed rule over all would cost its 7,000 American manufacturing facilities over $200 million each year.

“A lot of people don’t seem to appreciate what a lot of these requirements do to a small operation,” said Dick Titus, executive vice president of the Kitchen Cabinet Manufacturers Association, whose members are predominantly small businesses. “A 10-person shop, for example, just really isn’t equipped to handle that type of thing.”

Photo
 
Becky Gillette wants strong regulation of formaldehyde. Credit Beth Hall for The New York Times

Big industry players also weighed in. Executives from companies including La-Z-Boy, Hooker Furniture and Ashley Furniture all flew to Washington for a series of meetings with the offices of lawmakers including House Speaker John Boehner, Republican of Ohio, and about a dozen other lawmakers, asking several of them to sign a letter prepared by the industry to press the E.P.A. to back down, according to an industry report describing the lobbying visit.

Within a matter of weeks, two letters — using nearly identical language — were sent by House and Senate lawmakers to the E.P.A. — with the industry group forwarding copies of the letters to the agency as well, and then posting them on its website.

The industry lobbyists also held their own meeting at E.P.A. headquarters, and they urged Jim Jones, who oversaw the rule-making process as the assistant administrator for the agency’s Office of Chemical Safety and Pollution Prevention, to visit a North Carolina furniture manufacturing plant. According to the trade group, Mr. Jones told them that the visit had “helped the agency shift its thinking” about the rules and how laminated products should be treated.

The resistance was particularly intense from lawmakers like Mr. Wicker of Mississippi, whose state is home to major manufacturing plants owned by Ashley Furniture Industries, the world’s largest furniture maker, and who is one of the biggest recipients in Congress of donations from the industry’s trade association. Asked if the political support played a role, a spokesman for Mr. Wicker replied: “Thousands of Mississippians depend on the furniture manufacturing industry for their livelihoods. Senator Wicker is committed to defending all Mississippians from government overreach.”

Individual companies like Ikea also intervened, as did the Chinese government, which claimed that the new rule would create a “great barrier” to the import of Chinese products because of higher costs.

Perhaps the most surprising objection came from Senator Boxer, of California, a longtime environmental advocate, whose office questioned why the E.P.A.’s rule went further than her home state’s in seeking testing on laminated products. “We did not advocate an outcome, other than safety,” her office said in a statement about why the senator raised concerns. “We said ‘Take a look to see if you have it right.’ ”

Safety advocates say that tighter restrictions — like the ones Ms. Boxer and Mr. Wicker, along with Representative Doris Matsui, a California Democrat, have questioned — are necessary, particularly for products coming from China, where items as varied as toys and Christmas lights have been found to violate American safety standards.

While Mr. Neltner, the environmental advocate who has been most involved in the review process, has been open to compromise, he has pressed the E.P.A. not to back down entirely, and to maintain a requirement that laminators verify that their products are safe.

An episode of CBS’s “60 Minutes” in March brought attention to the issue when it accused Lumber Liquidators, the discount flooring retailer, of selling laminate products with dangerous levels of formaldehyde. The company has disputed the show’s findings and test methods, maintaining that its products are safe.

“People think that just because Congress passed the legislation five years ago, the problem has been fixed,” said Becky Gillette, who then lived in coastal Mississippi, in the area hit by Hurricane Katrina, and was among the first to notice a pattern of complaints from people living in the trailers. “Real people’s faces and names come up in front of me when I think of the thousands of people who could get sick if this rule is not done right.”

An aide to Ms. Matsui rejected any suggestion that she was bending to industry pressure.

“From the beginning the public health has been our No. 1 concern,” said Kyle J. Victor, an aide to Ms. Matsui.

But further changes to the rule are likely, agency officials concede, as they say they are searching for a way to reduce the cost of complying with any final rule while maintaining public health goals. The question is just how radically the agency will revamp the testing requirement for laminated products — if it keeps it at all.

“It’s not a secret to anybody that is the most challenging issue,” said Mr. Jones, the E.P.A. official overseeing the process, adding that the health consequences from formaldehyde are real. “We have to reduce those exposures so that people can live healthy lives and not have to worry about being in their homes.”

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