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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?”
Mr. Bartoszewski was given honorary Israeli citizenship for his work to save Jews during World War II and later surprised even himself by being instrumental in reconciling Poland and Germany.
Finding Scandal in New York and New Jersey, but No Shame
From sea to shining sea, or at least from one side of the Hudson to the other, politicians you have barely heard of are being accused of wrongdoing. There were so many court proceedings involving public officials on Monday that it was hard to keep up.
In Newark, two underlings of Gov. Chris Christie were arraigned on charges that they were in on the truly deranged plot to block traffic leading onto the George Washington Bridge.
Ten miles away, in Lower Manhattan, Dean G. Skelos, the leader of the New York State Senate, and his son, Adam B. Skelos, were arrested by the Federal Bureau of Investigation on accusations of far more conventional political larceny, involving a job with a sewer company for the son and commissions on title insurance and bond work.
The younger man managed to receive a 150 percent pay increase from the sewer company even though, as he said on tape, he “literally knew nothing about water or, you know, any of that stuff,” according to a criminal complaint the United States attorney’s office filed.
The bridge traffic caper is its own species of crazy; what distinguishes the charges against the two Skeloses is the apparent absence of a survival instinct. It is one thing not to know anything about water or that stuff. More remarkable, if true, is the fact that the sewer machinations continued even after the former New York Assembly speaker, Sheldon Silver, was charged in January with taking bribes disguised as fees.
It was by then common gossip in political and news media circles that Senator Skelos, a Republican, the counterpart in the Senate to Mr. Silver, a Democrat, in the Assembly, could be next in line for the criminal dock. “Stay tuned,” the United States attorney, Preet Bharara said, leaving not much to the imagination.
Even though the cat had been unmistakably belled, Skelos father and son continued to talk about how to advance the interests of the sewer company, though the son did begin to use a burner cellphone, the kind people pay for in cash, with no traceable contracts.
That was indeed prudent, as prosecutors had been wiretapping the cellphones of both men. But it would seem that the burner was of limited value, because by then the prosecutors had managed to secure the help of a business executive who agreed to record calls with the Skeloses. It would further seem that the business executive was more attentive to the perils of pending investigations than the politician.
Through the end of the New York State budget negotiations in March, the hopes of the younger Skelos rested on his father’s ability to devise legislation that would benefit the sewer company. That did not pan out. But Senator Skelos did boast that he had haggled with Gov. Andrew M. Cuomo, a Democrat, in a successful effort to raise a $150 million allocation for Long Island to $550 million, for what the budget called “transformative economic development projects.” It included money for the kind of work done by the sewer company.
The lawyer for Adam Skelos said he was not guilty and would win in court. Senator Skelos issued a ringing declaration that he was unequivocally innocent.
THIS was also the approach taken in New Jersey by Bill Baroni, a man of great presence and eloquence who stopped outside the federal courthouse to note that he had taken risks as a Republican by bucking his party to support paid family leave, medical marijuana and marriage equality. “I would never risk my career, my job, my reputation for something like this,” Mr. Baroni said. “I am an innocent man.”
The lawyer for his co-defendant, Bridget Anne Kelly, the former deputy chief of staff to Mr. Christie, a Republican, said that she would strongly rebut the charges.
Perhaps they had nothing to do with the lane closings. But neither Mr. Baroni nor Ms. Kelly addressed the question of why they did not return repeated calls from the mayor of Fort Lee, N.J., begging them to stop the traffic tie-ups, over three days.
That silence was a low moment. But perhaps New York hit bottom faster. Senator Skelos, the prosecutors charged, arranged to meet Long Island politicians at the wake of Wenjian Liu, a New York City police officer shot dead in December, to press for payments to the company employing his son.
Sometimes it seems as though for some people, the only thing to be ashamed of is shame itself.
Dan Walker, 92, Dies; Illinois Governor and Later a U.S. Prisoner
As governor, Mr. Walker alienated Republicans and his fellow Democrats, particularly the Democratic powerhouse Richard J. Daley, the mayor of Chicago.
Marcel Pronovost, 84, Dies; Hall of Famer Shared in Five N.H.L. Titles
Pronovost, who played for the Red Wings, was not a prolific scorer, but he was a consummate team player with bruising checks and fearless bursts up the ice that could puncture a defense.
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