Scarlett Johansson nukes OpenAI in a no-holds-barred statement, the fraud trial of one-time Ozy Media boss Carlos Watson gets underway, Donald Trump's media company posts a $327 million loss, Sundar Pichai defends Google's A.I. search amid publisher backlash, film critics savage Kevin Costner's pricey Western epic, Charlamagne tha God blasts Sean "Diddy" Combs, and more. But first, the A1. |
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CNN Photo Illustration/Vox |
Vox is preparing to celebrate its 10th birthday — making a major change to its business model that reflects how digital news publishers are scrambling to evolve as they are increasingly starved of referral traffic and advertising revenue.
Not only will Vox debut a refreshed website on Tuesday morning to mark its 10th trip around the sun (fear not, the trademark yellow is not going away), it will also launch a membership program, its executives told me Monday, as the digital publisher becomes the latest news outlet to lean into subscriptions to diversify and grow its revenue stream.
The subscription program — which will cost $5 a month, or $50 a year — will give members access to an array of exclusive content, including newsletters, a digital magazine, a monthly bonus episode of "The Highlight Podcast," live virtual tapings of audio programs, interactive video interviews, and more.
"It is so incredibly important to diversify our revenue and business model," Swati Sharma, the editor-in-chief and publisher of Vox, told me by phone Monday. "We have to be strategic."
While the site and its suite of content will continue to remain free to readers, its new members-only program is additive to Vox's existing content and will be the only programming behind a paywall. The outlet will count the revenue it earns from subscriptions as an added stream, with the publisher opting for a hybrid model consisting of multiple forms of revenue, including advertising and grants.
Sharma said that building a members-only tier for Vox's loyal fans was the natural step after finding success soliciting reader donations, which the outlet has done sine 2020. In those four years, it has received more than 100,000 contributions, Vox Media's consumer revenue chief Priyanka Arya told me.
Now, with members-only benefits aimed at enticing subscribers, coupled with the hiring of Bill Carey as executive director of memberships, the digital publication is hoping to strengthen its relationship with readers.
"We are taking a bet on people caring about news organizations," Sharma told me. "But I think that it's a bet worth taking."
The move could not come at a more critical juncture. News publishers are navigating challenging terrain, and most have been forced to undergo painful layoffs in recent years, including Vox. The stormy seas have been made even more tough by the rapid advancement and deployment of artificial intelligence. Not only has Meta turned its back on news publishers, but Google, which so many outlets have become quite dependent on, announced last week it will infuse its dominant search engine with A.I. That move has prompted alarm over the possibility referral traffic to news outlets will slow to a trickle. "It worries me and it should worry everyone in journalism," Sharma said.
The daunting circumstance has made establishing direct pipelines between news outlets and audiences as important as ever. Which is likely why so many major newsrooms have signaled they will, in one way or another, wade into creating and/or bolstering subscription models that include members-only content to supplement other revenue streams.
Looking ahead to its next decade, Sharma told me she wants to see Vox identify solutions to some of the biggest problems plaguing the world, expanding on its coverage of issues ranging from climate change to gun violence to loneliness. Sharma emphasized that while it is important to cover such paramount issues, it is equally important to offer readers a way to walk away empowered with steps they can take to help improve society.
"Vox was such an incredible bet to make," Sharma said. "It was offering something very specific at that time, which still resonates ... Vox pioneered the explainer format and that is everywhere today."
"We've explained the news," Sharma added. "The next step is shaping the world." |
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CNN Photo Illustration/RW/MediaPunch/IPx/AP |
The Scarlett Letter: Johansson sure has no problem taking on billion-dollar companies. The actress on Monday disclosed in a stunning statement that OpenAI boss Sam Altman tried to persuade her to record the voice of ChatGPT 4.0. Johansson said that she rejected the offer and was then "shocked, angered, and in disbelief" when the voice of "Sky" was unveiled to the public and it sounded "eerily similar" to her own. Johansson signaled that it was no coincidence, adding that "two days before the ChatGPT 4.0 demo was released, Mr. Altman contacted my agent, asking me to reconsider" the offer. And she noted that OpenAI itself referenced the voice in "Her," the film about the robot portrayed by Johansson. To that end, Johansson said she was "forced to hire legal counsel" who sent letters to Altman and OpenAI. The company, which has maintained another actress recorded the voice, said it has hit "pause" on the voice amid the backlash. "In a time when we are all grappling with deepfakes and the protection of our own likeness, our own work, our own identities, I believe these are questions that deserve absolute clarity," Johansson wrote. CNN's Brian Fung, Clare Duffy, and Ramishah Maruf have details here. 🔎 Zooming in: "Johansson is one of the world's most famous actresses, and she speaks for an entire class of creatives who are now wrestling with the fact that automated systems have begun to erode the value of their work," Casey Newton noted. "OpenAI's decision to usurp her voice for its own purposes will now get wide and justified attention." |
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- The fraud trial of Ozy Media cofounder Carlos Watson commenced on Monday. (NYT)
- Charlotte Klein wrote about Charlotte Behrendt, The NYT's so-called "inspector general" who was the force behind the Gray Lady's recent probe into leaks. (Vanity Fair)
- Apple News+ is sending reams of referral traffic — and the accompanying advertising revenue — to publishers, Maxwell Tani reported. (Semafor)
- First in Reliable | The Allbritton Journalism Institute announced its new class of reporting fellows. The fellows will first attend a boot camp taught by Tim Alberta, Josh Dawsey, and Wesley Lowery. They'll then work in the NOTUS newsroom. (AJI)
- The WaPo added A.I.-generated audio to three newsletters. (DigiDay)
- Ofcom is mulling whether to sanction GB News for "serious and repeated" violations of its impartiality rules. (Press Gazette)
- RIP: Alice Stewart, a longtime GOP strategist and CNN political commentator, died on Saturday at 58. (CNN)
- Stewart's death prompted an immediate outpouring from her colleagues. "My heart is broken," Jim Acosta said. (The Wrap)
- Philip Elliott wrote about why Stewart's death hit so hard: She was a "political pro who never lost her sense of decency." (TIME)
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- Lucas Shaw profiled Greg Peters, taking a look at how he made his way to Netflix, helped rescue the streamer with its password sharing crackdown, and how the co-CEO plans to lead the company into its next phase: "All he's got to figure out is live programming, sports, gaming, pricing, and, oh, advertising." (Businessweek)
- "Ahead of an expected appearance at Cannes Lions next month, Michael Kassan has prevailed in his bid to move to arbitration a lawsuit from UTA looking to block him from setting up a new venture after his messy exit from the agency," Winston Cho reported. (THR)
- Roku boss Charlie Collier spoke to Matt Belloni about the company's MLB deal, among other topics: "It's good to have the games, and it's good to be in that business." (Puck)
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- The NYT announced Vera Titunik rejoined the business desk. (NYT)
- The WaPo promoted Theresa Vargas to local enterprise editor; hired Martin Kady II as new general manager of professional products; and named Gabe Hiatt travel editor. (WaPo/WaPo/WaPo)
- The Guardian hired Rachel Savage as correspondent. (TBN)
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CNN Photo Illustration/Gabby Jones/Bloomberg/Getty Images |
The Expensive Truth: Need more proof that Donald Trump's media company is struggling? The Trump Media and Technology Group on Monday reported a net loss of $327.6 million last quarter, sending shares of the Truth Social owner down about 5%, closing at $48.38. And yet, that means the money-losing company is still worth north of $6 billion! "I can't emphasize enough how unusual it is for a company with this little revenue to have this high a valuation," analyst Matthew Kennedy told CNN's Matt Egan. Read Egan's full story here. |
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- Wikileaks founder Julian Assange can appeal his first challenge against extradition to the U.S., a U.K. court ruled. (CNN)
- The Committee to Protect Journalists, with a coalition of civil society organizations in tow, has pressed the Justice Department to drop charges against Assange. (CPJ)
- More talk of retribution from another Trump ally: Sebastian Gorka declared some Donald Trump critics "must be charged." (MMFA)
- While Trump faces actual criminal charges himself, Matt Gertz notes that his "effort to delegitimize this trial leans heavily on favorable commentary from his friends at Fox." (MSNBC)
- CNN and Fox News — once again — carried Trump live as he rambled outside court on Monday, bashing President Joe Biden and reading absurd supporting statements from right-wing propagandists like Mark Levin. MSNBC did not carry the remarks.
- CNN's Tom Foreman did, however, note after Trump's remarks engaged in "a lot of cherry picking" when he claimed CNN's legal analysts are on his side. "We haven't had anybody say there's no case against him." (Mediaite)
- Switching gears: Jen Psaki said she didn't "hate" Peter Doocy "at all" during her time as White House press secretary. (Daily Beast)
- Ayman Mohyeldin blasted the news media — including referencing a segment on "Morning Joe" — for "absolute hysteria" reporting on college protests. (Mediaite)
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CNN Photo Illustration/Kyodo News/Getty Images |
Sundar Speaks: Sundar Pichai sat down with The Verge Editor-In-Chief Nilay Patel for a hard-hitting interview on the "Decoder" podcast published Monday, in which the Google boss defended implementing its new A.I. search feature and repeatedly insisted it will likely benefit publishers. Asked directly about News/Media Alliance chief executive Danielle Coffey telling me last week that the feature will be "catastrophic" for publishers, Pichai said he remains "optimistic" and stressed Google realizes "the value of this ecosystem" and the "symbiotic" relationship it has with news outlets. "If there isn't a rich ecosystem making unique and useful content, what are you putting together and organizing? So we feel it," Pichai explained. Pichai added that Google is "engaging with a lot of players, both directly and indirectly." He said he understands their concerns. "It's a big change," Pichai acknowledged. "These are disruptive moments." Check out the full interview here. |
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CNN Photo Illustration/Gisela Schober/Getty Images |
Costner's Costly Catastrophe: Yikes! Kevin Costner's Western epic "Horizon" — which he told Zach Baron for GQ that he spent $38 million of his own money to make — is getting savaged by critics after its debut at the Cannes Film Festival. With 14 reviews in, the 3-hour epic has a stunningly low 29% score on Rotten Tomatoes. "The first film in the actor-director's planned four-part passion project is baffling – like a three-hour pilot episode for a TV show, with half-formed characters and no discernible structure," the BBC's Nicholas Barber wrote in a scathing review. Barber concluded his review wondering, "How can Horizon be so incoherent?" And that was kind compared to other reviews! The Daily Beast's Esther Zuckerman called the film a "misogynistic, racist, retrograde mess." ► While promoting the film, Costner addressed questions about whether he will return to "Yellowstone" for the show's final season, which Paramount said on Monday has resumed production. Costner told the AP's Jake Coyle that he's "open to" the idea of resuming his role. |
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- The reviews are in for Ali Abbasi's Donald Trump biopic "The Apprentice" — and they're mostly positive. (Deadline/Variety/THR)
- The rape scene in the film, in which Trump forces himself on then-wife Ivana, has stirred controversy. (Variety)
- Trump's team is already raging against the movie, trashing it as "garbage" and "pure fiction." (Deadline)
- Oliver Stone's publicist tried to "wave him off" as he started talking about "lawfare" supposedly being waged against Trump. (Variety)
- Demi Moore spoke candidly about filming the frontal nudity scenes in "The Substance," saying it pushed her out of her comfort zone. (CNN)
- Harvey Weinstein has been in touch with his friends at Cannes, Liza Foreman and Emily Smith report. (The Wrap)
- NBCU boss Donna Langley told Ramin Setoodeh that "consolidation is inevitable" and more "will happen." (Variety)
- Yorgos Lanthimos announced his next film, "Bugonia," which will star Emma Stone and Jesse Plemons. (THR)
- A24 landed "The Entertainment System is Down" by Ruben Östlund. (Deadline)
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CNN Photo Illustration/Frazer Harrison/Getty Images |
Disgraced Diddy: What was left of the reputation of Sean "Diddy" Combs has evaporated in plain sight after CNN's Elizabeth Wagmeister obtained shocking video showing the rapper physically assault his then-girlfriend, Cassie Ventura — a claim he had previously denied. Combs issued an apology over the weekend, calling his own behavior "inexcusable." But the apology has — to the surprise of no one — failed to quell the fierce backlash he's facing. Cassie's attorney noted that his statement was "more about himself than the many people he has hurt." And others, including those who had previously defended Combs, spoke out in clear terms against him. "Can't believe anything that comes out of Diddy's mouth," Charlamagne tha God said Monday. "He's not sorry, he's sorry he got caught. He's sorry that the video leaked, OK?" New York City Mayor Eric Adams even said Monday that the city is mulling whether to rescind the key it had once presented to Combs.
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- How big is Taylor Swift? Joe Coscarelli crunched the numbers to see how her career compares to The Beatles, Michael Jackson, and other industry greats. (NYT)
- The man accused of assaulting Steve Buscemi has been arrested. (CNN)
- Jerry Bruckheimer said that "if it was up to me, [Johnny Depp] would be in" the reboot of "Pirates of the Caribbean." (Variety)
- Ryan Reynolds said he was shocked Disney allowed "Deadpool & Wolverine" to be as "hard R" rated as the movie was. (The Wrap)
- The upcoming Christopher Reeve documentary, "Super/Man," will receive a limited theatrical release. (The Wrap)
- Don't forget "Dune" Day: "Dune: Part 2" hits Max Tuesday. (CNET)
- "Bad Monkey," the Bill Lawrence-executive produced comedy series for Apple TV+ that stars and is also EP'ed by Vince Vaughn, will hit the streamer with its first two episodes on Aug. 14. (Deadline)
- Steve Carell will star in an untitled series from Bill Lawrence and Matt Tarses for HBO. (THR)
- Common will executive produce the social justice thriller "Grassland." (The Wrap)
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Thank you for reading! This newsletter was edited by Jon Passantino and produced with the assistance of Liam Reilly. Have feedback? Send us an email. You can follow us on Instagram, Threads, and LinkedIn. We will see you back in your inbox tomorrow. |
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