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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?”
Jack Ely, Who Sang the Kingsmenās āLouie Louieā, Dies at 71
A 2-minute-42-second demo recording captured in one take turned out to be a one-hit wonder for Mr. Ely, who was 19 when he sang the garage-band classic.
Dave Goldberg, Head of Web Survey Company and Half of a Silicon Valley Power Couple, Dies at 47
By VINDU GOEL and QUENTIN HARDY
Mr. Goldberg was a serial Silicon Valley entrepreneur and venture capitalist who was married to Sheryl Sandberg, the chief operating officer of Facebook.
Rhapsody, a Lofty Literary Journal, Perused at 39,000 Feet
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.
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.
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.”
Gilbert Haroche, Builder of an Economy Travel Empire, Dies at 87
Mr. Haroche was a founder of Liberty Travel, which grew from a two-man operation to the largest leisure travel operation in the United States.
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