Rich Idiots Are Killing The Media To Please The Tech Industry

27 Mar 2024 · 49 min

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Podcast Summary: Better Offline - Episode: Rich Idiots Are Killing The Media To Please The Tech Industry

Overview In this episode of *Better Offline*, host Ed Zitron discusses the dire state of the media industry, which has seen over 30,000 layoffs in recent years. He critiques the media executives who prioritize growth over quality, ultimately leading to the degradation of journalism. Zitron explores specific cases including Sports Illustrated, VICE, and The Messenger, illustrating a pattern of mismanagement and a disconnect between executives and the core values of journalism.

Key Themes

  1. Impact of Executive Decisions
  2. Lack of Media Experience: Zitron emphasizes that many media executives lack experience in reading, writing, or understanding media, which leads to poor decision-making.
  3. Chasing Growth: Executives often pursue growth metrics driven by venture capital interests rather than focusing on quality journalism and audience engagement.
  1. Case Studies in Media Decline
  2. Sports Illustrated:
  3. Sold multiple times, leading to a focus on monetizing the brand through non-journalism ventures.
  4. Shifted content strategy from meaningful journalism to generic, low-quality content.
  5. Culminated in publishing AI-generated articles and ultimately massive layoffs.
  • The Messenger:
  • Launched with significant VC funding but quickly fell due to poor strategic decisions and a focus on volume over quality.
  • Executives failed to create a sustainable business model, leading to its closure and layoffs without severance.
  • VICE:
  • Once a pioneer in unique journalism, now crippled by debt and poor management.
  • Shifted focus from valuable reporting to a generic content strategy, resulting in job losses and a loss of brand identity.
  1. Crisis in Journalism
  2. Algorithm Dependency: Media outlets increasingly optimize content for algorithms rather than for readers, resulting in a loss of meaningful engagement.
  3. Standardization of Content: Many outlets are producing similar content, leading to a lack of diversity and originality in journalism.
  4. Profit Over Purpose: The current media landscape prioritizes short-term profits over cultivating a loyal audience or producing quality journalism.

Arguments Presented

  • Rebuilding Journalism: Zitron argues that journalism can be revitalized by prioritizing the relationship between writers and their audience, emphasizing the need for sustainable business models that support quality work.
  • Support for Worker-Owned Models: He advocates for worker-owned journalism, suggesting that empowering those who create content will lead to a better media landscape.
  • Critique of Executive Wealth: Zitron expresses disdain for the wealthy executives who profit from media entities while disregarding their responsibility to journalists and the quality of content.

Conclusion Zitron closes by calling for a fundamental shift in how media is managed and operated. He believes that journalism's future relies not on chasing metrics but on nurturing genuine relationships between creators and audiences. He urges listeners to support independent and worker-owned media initiatives, which he views as the path forward for a more sustainable and meaningful journalism practice.

Key Takeaways

  • The media industry is in a crisis largely due to mismanagement by executives who are disconnected from journalism.
  • Quality and trust are essential for media survival; metrics-driven strategies fail to build lasting readership.
  • Supporting independent and worker-owned media is crucial for restoring integrity and quality in journalism.

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Transcript

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1:51New customer offer first three months only. Then full price plan options available. Taxes and fees extra. CementMobile.com Call Zone Media Hello, and welcome to Better Offline. I'm your host, Ed Zitron.

2:13Better Offline Now look, I'm just a simple country podcaster, but at my heart, I'm a writer. I've been writing since I was 16. I wrote about video games at a now-defunct magazine called CVG, and then another called PC Zone. And there's been one theme, one thing that has hung around my entire media career. And that thing is that the people running the media do not read or write. I know I sound a little dramatic, but really, I'm not kidding. The majority of the media executives I've worked for, and the ones I've met, just did not understand or create any media of any kind. There were publishers who ran games publications who didn't play games and didn't write and hadn't written, didn't contribute anything to the magazines, and they routinely made decisions that just made the publications worse.

3:02There were executive editors at newspapers I've read and worked for that hadn't written a word in decades, and they made calls about the tone and direction of writers that they didn't even bother to read. and they were always looking for ways to increase readership without actually focusing on what made readers read things. When I went into PR in 2008, which by the way I did to move to America, I didn't really understand the job, pretty good at it now though, I was still able to keep a lot of my media connections, both at home and the ones I'd met on various press trips to America. And I saw this sudden and dramatic change that was happening to the industry and it was all thanks to the advent of mass social media and digital publishing.

3:42and, of course, digital advertising. And then over the years, I saw the same cycles repeat themselves again and again and again. These media executives, they'd see a trend, get very horny for it. They'd jump on it, and nothing would happen. So they'd move on to the next one, and they'd move on to the next one, and they'd keep going, and they'd keep dragging media entities into these vast, unprofitable, unsustainable quagmires, all in pursuit of, you guessed it, growth. They were always chasing growth. But what they were actually chasing was the magic of the startup valuation. Startups were suddenly being valued at$50 million,$100 million,$1 billion, and they wanted a little bit of that magic.

4:25They wanted to get even richer than they already were. Practically speaking, this meant that outlets were forced by their idiotic executives to chase the dragon of social media and search traffic. And they'd optimize their content not for a person or a living being of any kind, but to please algorithms that they didn't control, run by companies like Meta and Google who didn't give a shit about them. As a result, it's been a fairly apocalyptic decade in journalism. Multiple outlets have grown into these massive, unwieldy, unprofitable businesses, and then collapsed under the weight of executive malpractice.

4:59In the last three years, over 30 ,000 people have lost their jobs in the media industry, all while executives received these massive paydays for what appears to be accelerating the Titanic into the iceberg. As private equity and venture capital money has flown into the media industry, so have the rotten demands for eternal growth. Brands that you read as a kid, magazines and newspapers that inspired you, they become shells of their former selves, all because they've chased these growth metrics, which naturally ostracize and then eventually lay off the journalists that made these outlets famous.

5:32until, of course, the outlet has to shut down due to unforeseen market conditions, which is a euphemism for we are too stupid to run a business. Sadly, at this point, you'll probably realise that things are not going well in the media industry, and indeed, 2024 has been one of the darkest years in this industry I've ever seen. The first high-profile media casualty of 2024 was Sports Illustrated, formerly one of the most important brands in sports journalism, and it was slowly choked to death after being sold twice. First to Meredith, which acquired it as part of its$1.85 billion acquisition of Time magazine in 2017, and then it was sold again when the intellectual property was licensed to Authentic Brands Group, which is a holding company, which bought it for$110 million.

6:20Now, you did hear me right. They sold the intellectual property, the name, Sports Illustrated, and the logo, and their goal was the insane prospect of branding things like medical clinics and gambling businesses. This is actually kind of a weird precursor to the amount of sports betting you'll see in modern sports today. Now, Meredith Corporation would continue to publish Sports Illustrated until about 2019, when Authentic Brands Group would license the editorial operations to a company called The Maven as part of a 10-year licensing deal, and then laid off 40 people and shifted the editorial strategy away from the deep, thoughtful analysis that people actually gave a shit about towards focusing on breaking news, the things that people could literally get anywhere.

7:05And while they were doing this, they flooded Sports Illustrated's website with this kind of noxious, empty, generic, contributed content, all from affiliate sites run by these poorly vetted contributing bloggers. Now, no offense to the world of contributing bloggers, there are some good ones out there, but in this case, this was chop shop work. This was done specifically to fill the site. It was not built to inform people. Thanks to this, Sports Illustrated had spent a few more years deteriorating until around December 2023, when they published a piece by a man called Drew Ortiz. Except Drew didn't exist.

7:42He was one of multiple non-existent pseudonyms given to content generated by AI. While Sports Illustrated initially denied the claims of using AI, they would fire their CEO, Ross Levinson, a few weeks later. Now, Levinson's a real piece of shit. He's a scumbag. He had multiple accusations of sexual harassment against him when he was at the LA Times as their CEO. And while he was there, he quite literally tried to do exactly the same thing. He tried to make the LA Times take external contributors. Thankfully, strong unions and the eventual acquisition of the Times, managed to get rid of him. He still managed to get paid millions.

8:21In 2024, the Maven, now called the Arena Group, would lay off most of Sports Illustrated's staff after failing to pay the licensing fee to Authentic Brands Group. Which is insane, by the way. You can't publish on the website because you didn't pay the Dairy Queen franchise thing you have to to be called Sports Illustrated. Anyway, the Arena Group claims they'll still keep publishing Sports Illustrated, but it's not really clear what that's actually going to look like, considering how unprofitable the Arena Group is. They had a net loss of$50 million in the first three quarters of 2023, and Sports Illustrated, well, they fired everyone.

8:59What's really pissing me off though, and this whole subject fills me through my veins full of unearthly poison, Sports Illustrated used to be profitable. It was profitable for decades. And the reason it got profitable in the 50s was because the managing editor was a sports writer. It was also profitable when it was acquired in 2019, and it stayed that way through 2020, a year when pretty much every business suffered. Its value, just to be clear, over$100 million, didn't come from the fact that a private equity group sold it to another private equity group, though I realize the Igarina group probably wouldn't like being called that.

9:39Its actual value came from writing. Important, meaningful sports writing. From writers like George Plimpton, Curry Kirkpatrick, and Emma Bacheleri. And it died. It died at the hands of people that don't read, don't write, and don't understand business. Journalism is being killed by non-journalists that are desperate to turn it into another shitty startup ecosystem.

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11:54More choices, less compromise. Visit buyatoyota.com for a great deal on an efficient Toyota today. Toyota, let's go places. Less than a month after Sports Illustrated started to collapse, there was a new media entity that was actually already working on dying. The Messenger was a news outlet that raised$50 million in VC money and hired about 300 people, many of them were reporters. In many respects, it was not really a news outlet, though. It was focused on churn. It thought that volume, velocity, and just lots of stuff was the way that you make a big media outlet, rather, of course, than building a rapport with readers and adding their trust and making them like the writing, you know, writing good stuff that people like.

12:39No, no, no, no. You just need lots of things. And despite this hefty war chest, it shut down on February 1st, 2024. And this is the disgusting part. Workers were left unemployed and uninsured, and they didn't even get severance. And it's all because, guess what, the executives running it didn't know what they were doing. The messenger was doomed from the beginning. The people behind it were just complete idiots. Their CEO, Jimmy Finkelstein, made$900 ,000 a year, and they spent$8 million on office space in New York, DC, and Los Angeles, which is just crazy. This is the year 2024. Why do you have office space for a thing you can do at any computer anywhere?

13:23Anyway, sorry, let me calm down. But what really drove it into the ground was that they had this very aggressive and extremely stupid editorial strategy, and it was all driven by people who didn't know what they were doing. All they thought was that traffic was good. This goddamn thing didn't have a sitemap. The Messenger, a modern media property, was run by people who barely knew how to use a computer. Let me give you some insight into some of the rot inside this company. So after the company collapsed, Eli Walsh, who, love him or hate him, he was a writer at The Messenger, and he built his career in California journalism, primarily local stuff.

14:01He described this constant pressure to produce more content, with a lot of it just actively ripped off from publications like the Daily Mail and the New York Post, two outlets I would not describe as esteemed. After eight months of working at The Messenger, Eli Walsh claimed that he had no usable clips for his portfolio as a result of how crap the editorial strategy was. Now, listeners, if you're wondering why that's so bad, even at the worst place I've worked, even the crappiest freelance outlet, I still get a clip I can use. Because usually, good writing is still published, even if it's published and edited in a way that you don't like.

14:41But what the messenger would publish was this very bland, mass-appeal, mass-produced journalism that didn't really say much. And it's funny to steal from the Daily Mail, considering how much of their stuff is viral content stuff or very shittily written headlines. It's actually really weird that the messenger didn't die quicker. And honestly, the messenger's chop-shot mentality was completely nonsensical, but seriously, the demise was avoidable. Had the people in charge actually known what they were doing or say, I don't know, talked to a journalist about how journalism works when developing the bloody business model,$50 million is actually quite a lot for a media organization.

15:24You could have done a really great job. You can run an incredible newsroom with 10, 15, 20 people,$50 million. you'll be able to sustain that for a long, long time. But they didn't understand that. And the problem is that none of these media executives really understand how great journalism or great anything in media is built. They don't understand that trust, reputation, and loyalty are actually very hard to quantify. What is easy to quantify, though, is revenue growth and page views. You can look at page views, if you're a colossal dingus, and say, wow, number go up. Ooh, money come in. Now, is it profitable?

16:10Is it actually stuff that people like? Are people returning after they click it? Or did you just convince them to do so through Google? Who knows? The messenger is dead now. They deleted the whole website. But putting that aside, Because these people have no active participation in the process of making journalism or creating media, they don't understand how media outlets are built. They may have been participants, they may have been the money, but they were not the writers, the speakers, the photographers, the illustrators. They had no part of it. But just to be clear, the people involved have names.

16:49The Messenger was founded and destroyed by a man called Jimmy Finkelstein. He's a media tycoon with close ties to Rudy Giuliani, and you know what he did at The Hill? Which he sold for$130 million, by the way. He used to lean over the shoulder of editors and tell them not to be so critical of Donald Trump. It's fucking gross. It's disgusting that these people are allowed to get so rich. Finkelstein, and by the way, former staff when talking to the Daily Beast referred to this guy as a sociopath that was deliberately cruel. He paid himself$900 ,000 a year while running a newsroom like a sweatshop and not giving people severance.

17:30Fuck you, Jimmy. You're a wrinkly scumbag. I can't legally wish anything upon you, but I'll laugh if it happens. Sadly, Jimmy Finkelstein isn't the only con artist choking the life out of the media industry. There are some much worse freaks out there. I don't know if you've been looking at it, it's quite painful to watch, but for years I've been watching Vice die. Vice used to be one of my favorite publications. Motherboard did some of the best tech journalism out there, and actually 404 Media is a lot of the former Motherboard people. Go pay them money. But on February 22nd, 2024, Vice announced it would no longer publish written content to any of its flagship publications, which included Vice.com, their regional sites, or indeed motherboard.

18:17Hundreds of people lost their jobs as a result. It's a disgraceful end to this publication. It was once like this indie punk magazine built in Montreal. It was something cool. It was something weird. You could kind of mock it, you kind of laugh at it, but I just did cool shit. And then over the course of years, it was infiltrated and rotted out by private equity adjacent freaks that don't write or read or create anything. And it turned into this giant, unprofitable, unsustainable$7 billion behemoth. And you'd think that growth for it would be good, that more people would be reading Vice's journalism.

18:54That would assume that journalism was the product that Vice actually wanted to sell. Though people do make fun of Vice's kind of faux gonzo, I took drugs and walked down the street style journalism, actually a lot of their stuff was incredible reporting. Simon Ostrowski's coverage of the earliest days of the Russo-Ukrainian war culminated in him being arrested and held captive by separatists in Donbass. It was really important work at a time when you really understood what was going on with that conflict. Ostrovsky's work ended up getting Vice 2 Emmy nominations, as well as a couple of Webby awards, and it was seen, quite rightly by the way, as a time when digital journalism was finally challenging broadcasts' kind of monopoly over conflict and foreign policy reporting.

19:41It was a really impressive thing that Vice did, and it was at a time when people, I don't know, were kind of surprised by Vice's ability to do it, and they shouldn't have been. They were our home to some amazing journalists. Vice had an uncanny ability to get into some of the world's most isolated and, frankly, dangerous places, and even make it out alive. A good example is they did a story on Siberian lumber camps where North Korean workers were being worked to death to make money for the country, and they did another one on the Syrian city of Raqqa, which in 2015 was the capital of the Islamic State's self-proclaimed caliphate.

20:14Vice did important work every single day, and then they did fun stuff, because not all journalism needs to be world-changing. It just needs to be interesting and fun and full of love. And unlike so many outlets, Vice actually made money, and it could have been profitable, but it never seemed to get there. And while there's no single reason why, it mostly comes down to pursuing growth and executive greed. Vice, as it grew into this$7 billion creature, it took on all of this debt. It wanted to be a global media empire and expanded in an aggressive, deeply unsustainable way. And it made these terrible, awful bets, branded content, shitty video, all while doing this ridiculous dance of paying their executives insane money and laying people off at the same time.

21:07And this was a big problem for this outlet. Executive compensation was always high, even when the company was not paying its utility bills or paying out severance. It would take these deals with investors where they guaranteed dividends, regardless of how the company was doing. Just to be clear, on a business level, that is insane. You don't make a deal you can't reliably pay. Very basic business. Unless, of course, you don't really care about the business succeeding or surviving. And then they would do these very annoying branded content deals. A good example of one is they did a 2014 deal with Absolute Vodka, which kind of made everyone feel a little greasy.

21:47And then they did a partnership with the Saudi government. It's not particularly punk rock, and it's definitely not suggestive of any great editorial independence. To be clear, that people writing at Vice were victims of this. If you're looking for somebody to blame, you can start with Corey Hike, who is Vice's chief operating officer. Before joining Vice, she co-led Mike, a publication she drove into the ground. And she did so by moving it away from this kind of hip, young, really actually beloved journalism. People loved Mike. And then she took it and said, Huh. Well, Facebook is saying that we're getting all of these views and all of this engagement on video on Facebook.

22:28So let's pivot the entire thing to video. Now, the pivot to video that Facebook pushed is enough for an entire episode. But the long story short was that Facebook incorrectly showed massive growth metrics that did not exist to publishers. This led publications like Mike and actually Mashable to massively move their editorial strategies around to make video content. Now, you may think, huh, couldn't you just avoid this by seeing if it made any money? And no, she didn't do that. She wrote an empty-headed Vox article about how the future of journalism was visual. And then she laid off most of the staff and sold the IP to a company called Bustle that is best known for buying IP and running crappy journalism on them.

23:19There are some good publications that run on the Basel Network. It certainly wasn't doing what Mike was doing at the time. Corey Haik is an example of the media world's failure to police itself. She is a career failure. This is now the second publication she's driven into the ground because she does not understand what she is doing. And that op-ed I previously mentioned, the 2017 Vox one, she claimed that we were in the early stages of a visual revolution in journalism. To be clear, Corey Haik is not a journalist. She's not an editor. She's not a creator. She's not a creative. She doesn't write things.

23:56She doesn't speak things. She doesn't take photos and she doesn't draw things. She is a parasite. And these walking stains on the earth, they got rich. They got rich as hundreds of people lost their jobs. Bankruptcy filings showed that Vice executives paid themselves$11 million between May 2022 and May 2023. Corrie Hike paid herself over$726 ,000, and former Chief People Officer Daisy Auger-Dominguez made over$748 ,000. During this period, by the way, writer Joseph Cox said that he was unable to pay the 10-cent fee to pull a court record because Vice wasn't paying their bills. If you want to blame someone for the destruction of modern journalism, people like Corey Haik and Miss Olga Dominguez, they're the people to blame.

24:47These are the people that are being allowed to make the cause on these vacuous pools of data that don't make sense. And they don't make sense because they have no connection to the newsroom. They're not writing anything. They're not reading anything. They're not part of the media, other than the fact that they are in commanding positions in the media. They are landlords by another name. And they're rich. They're unfathomably rich. All because they conned their way into different jobs that allow them to fail upwards again and again. Worse still, they don't have any ideas, which is why they so often do stupid things.

25:25It's why they're doing this same ridiculous cycle again and again, where they take a media outlet and they try and run it like a tech startup and they don't see the difference between running an app that sells a service and a media company that makes content that people consume or creates a relationship with the audience. Trust, authenticity, these are the things at the heart of the media and readers are very sensitive to changes. They are not stupid and I think that these executives believe they are. They believe that readers are little pigs that will come and click anything, that can be tricked and conned.

26:03Executives that believe readers are like that deserve to not have jobs, by the way. But what they don't realize is that media outlets are also delicate. If you mess with the formula of media outlets, you're going to alienate the people who actually read them, the people who pay your bills either by subscribing or by proxy by clicking and looking at ads. And it sucks. It sucks because all of this is very obvious. I'm sure many of you listening are like, yeah, that makes sense. Surely you would not run an outlet by making worse stuff, but lots of it. Surely you would make a good outlet that makes good things.

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26:38But that's the thing. Look, if you're no longer concerned with loyalty and you really only care about people who accidentally find a page by being tricked by social, they see a headline they like, or perhaps they search for something, you don't really care about alienating readers. You can do whatever you want. You can experiment willy-nilly. You can undermine editorial standards. You can lay off people. You can promote your friends. You can force people to do stupid shit that nobody likes. Because all you care about are analytics. All you care about is that ephemeral, random, spontaneous traffic that you can show to your idiot rich friends and say, wow, my outlet's popping off.

27:19And when all you give a shit about is visits and impressions, all you're really going to focus on is what's going to please the big tech firms like Meta, Twitter, and Google. And these social networks have been very clear in how little they care about news unless it helps them get traffic. And indeed, the early days of these social networks were heavily dependent on media outlets creating content for them so that people stayed on them. And then they choke that traffic the moment they didn't need it anymore. The network effects that these executives are chasing, the social virality, the Google search positioning, they make the number go up.

27:55And if that's all that matters, well, you don't really care about having a lasting web presence. You don't really care about a sustainable media outlet. You're just an online marketing company that publishes words or videos. and frankly i can't think of a more damaging part of the media than the chase of these metrics and specifically search engine optimization the allure of search traffic especially with the drop of traffic from social media websites has just poisoned so much of the media and now publishers create content that's not really there to serve an audience per se or build a relationship but to kind of get this spurious traffic, the when does the Super Bowl start?

28:40What time does this go live? Where can I buy something? You've probably seen these and wondered why so many outlets publish the same thing. I'll get to that.

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30:44So, if you see all of these websites that have, like, when does the Super Bowl start and top 10 televisions, all these things, and you see them, you're like, this doesn't make sense. I'm used to reading long-form things on here. it's because those have embedded links, sometimes to Amazon or Walmart or Best Buy. Those outlets get a sliver of money every time you click, and they get a little more as you browse around the site if you buy something. Now, there are very trustworthy outlets engaging in this, and it's a way to make money for the media outlet. There are some like the Wirecutter who actually do a phenomenal job.

31:17They do very deep product testing. Later on in this podcast, I'm actually going to get into some of the scumbags in the industry, but there are trustworthy folks that make money on this. The problem is you can also make money by not making any effort at all. And I will get to that. And the result of this chase of metrics is a media industry in crisis. Executives and editors that don't really read or write and don't remember the last time they published anything, they're twisting reporters' coverage to make Google happy. And all they want to do is improve traffic and get advertising. That's all there is to it.

31:52And yes, I understand that there's money that needs to be made to pay people's salaries, but so much of the internet is becoming content that looks and sounds the same. And like I said, those affiliate marketing deals, they make money even when you just do a half-assed effort of saying, I like this TV. And what happens when everyone chases the same dragon is nobody's really happy. People aren't really coming to your website for the top 10 best apps. They're not coming to be told, hey, these are the best deals. They might enjoy those, they might use them, but that's not what's keeping them there.

32:30And you're seeing so much of that because those in power are not actually looking at the outlets. They're not reading these websites. They're not even really consuming the media. They're not on social media. They're not on anything other than maybe the New York Times and CNN. The people running the media don't participate. Not as customers, and frankly not as workers. And these people, they only really understand the media as a series of symbols, shadows on the cave. They don't really see it beyond the numbers, and they think that at some point money comes out due to words and writing, and video maybe?

33:10They don't really care how that forms as long as the money keeps coming, even if the money stops one day. This poor decision-making almost always leads to overstaffing and, frankly, general mismanagement. Any form of creative media, anything you see, any great outlet you have seen, requires a very basic understanding of audience. And an audience takes time, and it takes energy, and it takes working on this. I am sure in 15 episodes, I will be a lot better than this. I'm sure 15 after that, I'll be better than that. And thankfully, I hope I'm good enough now for you to listen to, and you'll stick around and hear me get better.

33:49But because of the way that Coolzone Media works, I will have that chance. I'm not being told I have to hit a quota. I'm being told to get in this studio and talk and produce great things, hopefully. But that's the problem. That's the problem when you don't create anything, when you're a parasite, when you're someone that steals from others. The Messenger's a great example here, by the way. So they hired about 300 reporters, and a lot of them were very well-established, well-respected reporters from major outlets. And then they took these great, skilled, wonderful people, and they said, please repurpose other people's work.

34:27I mentioned already the Daily Mail, New York Post, as examples of places they took from. This doesn't really make sense to even a regular person, but when you're a kind of soft-brained media executive and all you care about is short-term growth and you want to see number go up immediately, all you care about is scale, so all you're going to do is put out masses of chum. And it sucks. It sucks because they're so wrong. And what's insane is these executives, they're blind to the actual success stories of the media. I'm thinking of worker-owned outlets like Defecta, 404 Media, Aftermath, and, I don't know, many of the successful, profitable newsletters like newcomer and platformer that have done incredibly well with incredibly small staffs because guess what?

35:14People don't want the same shit in a different flavor. They want informed opinion. They want it from fallible, imperfect people. They want to know they're hearing from a person. They want something that has emotion in it. That's why people pay for journalism. That's why people read. While there is a degree of service journalism to tell you what happened, And a lot of great writing is emotional. Defecta, they're actually a really interesting one as well. They're successful. They're profitable. And they cover more than just sports, despite being a sports website. They're sports and culture. And their staff came from a website called Deadspin.

35:51Now, Deadspin is hilarious. I used to write that. I love Deadspin. Deadspin was a sports and culture site. They wrote about sports and then other things. Drew McGarry did a famous thing about one time when he collapsed and something was wrong. with his brain, for example. There were some wonderful things on there that were completely unrelated to sport. When the private equity shuffles as a result of Peter Thiel's lawsuit against Gawker happened, a company called Geo Media took over, and their complete moron of an executive, Jim Spanfella, he fired Barry Pochetsky because he refused to make Deadspin's staff stick to sports.

36:30Now, Jim Spanfella is a complete moron. And I know you shouldn't just insult people in the podcast, but he's a dingus. He's a complete numpty. And you may ask, huh, well, based on looking at Defecta, and indeed based on being able to look at the economics of Deadspin when he owned it, wouldn't you, Spanfella, just want to let them keep writing and doing stuff in the exceedingly popular way that everyone loved? And the answer is that Jim Spanfella is a fucking idiot that doesn't understand journalism or business. And indeed, many times you will see stories like this and you'll be like, I don't get it.

37:04How did it fall apart? And the answer is usually that. Jim Spanfella, he wanted Deadspin to be like any other sports out there. Yet the whole reason people read Deadspin and indeed read and pay for Defecta was because it approached sports without the kind of very strong boundaries that restrict the outlets like ESPN or NBC Sports, which they have their place. Now, Jim Spanfella and his type of people, they'll never understand that the world doesn't need another content mill. We don't need more aggregations of aggregations of aggregations of another outlet's aggregation. And though this content, when engineered in the precise way that Google likes, may indeed get traffic from search, and it may be quote-unquote popular, it doesn't mean that anyone's coming back.

37:51You're not building loyalty. And earlier in March, Deadspin was sold again, this time to a startup called Lineup Publishing. A little bit painful when you think about the right economy there. And they're based in Malta, which is a business retreat for tax dodgers, but also known for cryptocurrency startups and, more worrying in this case, European gambling firms. An investigation by Sean Keely over at TDM found numerous connections between Deadspin's new owner and various online casinos, which heavily suggests that it's going to become not a sports website, but a website for affiliate marketing for gambling sites.

38:26And what sucks about that is kind of the way that sports in general is going. You're going to be able to bet on NBA games from their app, for example. It's a terrible precedent, but also a terrible thing to happen to one of the greatest sports websites to ever run ever. But don't worry, Jim Spanfeller still has several other websites to fuck up. and in this case he's currently working on destroying Kotaku. Now Kotaku was previously one of the most well-respected gaming publications in the world and they were sold to GeoMedia as part of the Gawker lawsuit. Last week as reported by Aftermath's Geeta Jackson and Riley McLeod, Kotaku editor-in-chief Jen Glennon resigned after GeoMedia executives decided to change Kotaku's remit from publishing news and opinions about video games, the whole thing that made them famous to creating, and this is the real number by the way, 50 game guides a week on a staff of seven people.

39:24Kotaku is, or I guess was, an institution in the gaming industry, and it was built off the back of publishing thoughtful, timely coverage about games, and very personal, personal pieces about video games. An industry well-known, and pretty much the only other one other than sports that can really have a genuine feeling of nostalgia in the writing, they're turning away from that. And they're turning it into what will just become another SEO chop shop. And it's all thanks to Jim Spanfeller, a man who cannot run businesses. He's going to turn Kotaku into just another SEO slop dump, another place where you can answer questions about where to go in a game when you're stuck.

40:05Oh, how do I make Cloud Strife go nude? Oh, how do I beat Sephiroth at some point in FF7? Jim Spanfeller's never played a video game at any point, so I don't think he knows that there is no way to make Cloud Nude, but indeed doesn't know anything about gaming. He doesn't know anything about games. He doesn't know anything about writing, because like all of these people I've been talking about, Jim Spanfeller does not actually know anything about the company he runs. And it's disgraceful. Gaming is a multi-trillion dollar industry. Gaming is something that's so important to culture. You have the weirdest, most reclusive people and incredibly popular sports stars who all played the same games.

40:49This is one of the most dominant forces in culture. And this idiot is taking Kotaku, which has had a crazed history. It has had a lot of controversy, but it's popular. It's meaningful. Writers from Kotaku have gone on to found things like Polygon, another influential, and in this case, Vox Media-owned property. Aftermath was founded by several people who have written a Kotaku. This outlet created, in some level, modern games journalism. And now it's going to have the same value as game FAQs, except worse, because people on game FAQs actually play games. Much like Sports Illustrated, Kotaku and Deadspin, they're going to become something I call a shit of Theseus situation.

41:35When an illustrious brand has its guts ripped out, replaced with the thoughts and the feelings and the ideas of a huge moron. And it's so stupid. It's so frustrating. And until something changes, it's only going to get worse. And I know I'm angry and you should be angry too. I'm furious. These people, those of them who are not my friends are just people I've enjoyed reading. People have lost their jobs because the media industry is being run into the ground by people that do not know how to read, write, or even run a business. Every outlet that you read today that kind of feels like a shadow of its former self, there's a reason.

42:16It's got there because the people in charge don't read, don't write, they don't contribute, they're not media creators. They are parasites, as I've discussed, and their remit is not to create a lasting legacy, to make something that people read for years. They are trying to turn that outlet into a shitty startup that they can flog to someone. Except these things never sell. Ever. And that's because, on top of being idiots, they do not understand any kind of business at all. And the reason that a lot of these executives just can't understand it, and they can't understand why things succeed and their properties fail, is because they don't really want to accept that you can't grow a media business like a startup.

42:59or like any kind of regular business. You still need a profit and a loss, but it takes time and you have to invest that time as much as you have to invest that money. Media outlets grow, and I'm paraphrasing Coolzone Media's Robert Evans. They grow by hosting the work of journalists that people love and giving them the time to develop a following and make it, make that great stuff, to refine their craft, to be great even if they're not quite there. through mentorship and through just doing the work. Our sister show, Better Offline Sister Show, it could happen here. It took years to develop it into what it is today, which by the way, it's a profitable podcast and it gets millions of downloads a month.

43:43And it got there because Robert and Sophie put in the time and the money, and so did iHeartRadio of course, to give these voices the chance to grow and to help them grow comfortable, especially with media that involves you being exposed to the world by talking or by being on video, so much of that is growing comfortable with the format and finding what works specifically for you. And then once you've done that, you have to build a rapport with the audience, as I hope I'm doing today. And none of this can be forced. You can't accelerate this process. Perhaps, as Roberts also said, you can get these big, unique scoops that get people through the door, but you have to keep making stuff and you have to keep refining it too.

44:25And none of these executives like that because you can't tell that to a private equity firm. You can't tell a private equity firm to wait and be patient. They're not in the business of patience. Venture Capital doesn't want to hear that it's going to take a while and a non-specific while at that to get their money out. They want money now. Money me, money now. And what's really sick and ironic about this is they're not making money from this. Buzzfeed went public. It was a horrible mess. Vice has been running to the ground. And sure, these people have made a bunch of money off of the back of others, but they've also destroyed something meaningful.

45:03And this will colour their legacies for the rest of their lives. Maybe they don't care. I don't know. I hope they do. I hope they don't sleep at night. I hope Jimmy Finkelstein gets visited by the ghosts from A Muppet Christmas Carol specifically. Marley and Marley. I think that'd be kind of funny. Putting that joke aside though, these people shouldn't be allowed to walk down the street without getting yelled at in a perfectly legal way that I'm not encouraging anything illegal, of course. But I find within myself a great deal of poison for them. I find them disgraceful because I want to make it like they had a good thing.

45:37Had Vice been run sustainably, had they really focused on making it a profitable outlet, they could have what 404 Media is doing today and then some. 404 Media is a worker-owned business made by people like Jessen Kobler and Emmanuel Mybug, who left Vice, who left Motherboard. Vice used to own 404 Media. These people used to work for Vice. And now 404 Media has had major scoops that are changing the entire tech industry. They are the ones that published the Google search is getting worse story. They are continually getting these scoops, doing great journalism, and they're going to probably become a very successful and profitable business.

46:15Vice could have had that. Vice literally had that. Jim Spanfeller had Deadspin. None of these people realize what they've got, even after it's gone. And maybe they just want that short-term bang. Maybe they just want a little tittle of money so they can feel rich and nasty and hang around with their other arsehole friends. And I find them despicable. If I meet any of them, I want to make some very creative noises in their faces. And it sucks. It sucks because the real human consequences fall upon the actual people making them rich. The people creating stuff, the people talking, taking photos, and drawing things, writing things.

46:50They are the victims of this. The people who should be the victims, the people who shouldn't make a dollar, are the ones making the money. They are the ones who stay rich, stay powerful, and will probably fail upwards into another media job. And that's the thing. Thanks to these people, the media industry has spent over a decade fucking around, and now they're finding out. And the journalists are paying. These executives, they've spent this time and they built this foundation, this massive search and social-based foundation, and it's made on top of sand. And they're desperate, so they change strategy, and they change strategy again, and they do so to please algorithms, not people.

47:33They've completely forgotten, or maybe they did not know that every success, every previous success in the media has pretty much come from a small group of opinionated people with good ideas who create cool shit. And really, that's the only salvation for journalism. Modern journalism can be rebuilt, but rebuilding it will take reinforcing the relationship between writers and their audiences. And media properties need to help foster that and empower that relationship instead of trying to get rid of that instead of turning everything into a brand to be sold to private equity. We can work back. We can get back what has been lost.

48:14By supporting unions in newsrooms, by supporting and paying for worker-owned journalism, you can bring back great journalism. You can turn this tide. The private equitas will eventually lose because at some point, right now they're exceedingly dependent on Google search. Everyone chasing search engine optimization is dead in the water eventually. Google and Facebook, they turned on the news before. You don't think they'll do it again? You don't think that Google will eventually tweak the algorithm in some obscene way to turn away from this generic slop. When that happens, sadly, once again, journalists will be the ones that suffer, which is why right now journalists should unionize.

49:02It's tough, but if it's possible, they should join worker-owned co-ops like Flaming Hydra. They should join these great organizations and look up to things like Defecta and see the wonderful journalism they're doing day in, day out, people like Ray Rato. He's a fantastic journalist, an esteemed Bay Area reporter, and he's done some of the best work of his career at Defecta, and he's done so because it's owned by him and the rest of the writers. The people building are the people that should own stuff. Now, I feel a bit crazy whenever I talk about this subject, and I think it's because great journalism and great writing is foundational to culture.

49:41Hearing an informed opinion, doesn't matter where they're at, if they're at a blog, if they're at a newspaper, if they're on TV, hearing someone who actually knows what they're talking about, speaking from the heart, who's developed a relationship with you as a reader is transformational. It changes people's lives. And great opinion journalism does on top of that. And everything that I am doing, my PR firm, my newsletter, my podcast, is a result of having great mentors in journalism, like Will Porter over at PC Zone, and Log, and Steve Hogarty. People that were there to help me as an early writer to help me, encourage me to develop my voice, the voice you are hearing today.

50:22None of this crazed confidence comes from myself. It comes from having great mentors like Sophie and Rob over at Coolzone Media, like David Roth at Defecta. These people are the reason that people read websites. It's the reason they listen to podcasts. It isn't because of virality or search engine optimization or any other little bits of bullshit that people like Jim Spanfeller and Corey Haidt claim is the case. The answer to fixing journalism is simple. It's just annoying to growth-at-all-cost capitalists. Profitable, sustainable journalism, or any content really, is built off the back of letting people with defined voices build and sustain an audience.

51:07Every single success story, every single great newspaper and website was a result of letting great creators create great things and giving them the space and platform and time and funding to do so. If you want the next great media outlet, it isn't going to come through tricking Google or Twitter or Facebook or Instagram into reading your stories. It's about making great shit and getting people to see it and making sure that the people making it feel supported and mentored and helped to make more of it. I believe there is an absolute mountain of money right now in journalism for investors capable of thinking more than six seconds ahead of course give writers the space and the time and that time may be measured in years to build audiences and develop relationships with their readers embrace their individuality and pay them well for the privilege of having them speak on your behalf build for readers not investors and you will make way more money than you ever would licensing a brand like a goddamn Denny's franchise.

52:14Things can get better for journalism. I promise you they will, if only the money and the power is put in the hands of actual writers and actual creators rather than career failures and private equity dipshits. But until there is a significant realignment, that something meaningfully changes in media, one that puts the power back in the hands of the people actually creating stuff and focuses on the things that they create, We're going to see this cycle repeat again and again and again. And I'm going to get angry and you should be angry too. I hate to tell people to be angry. I hate anger in general.

52:49But in this case, it's justifiable. This is a singular force damaging culture and enriching arseholes. Do not believe them. Do not trust them that any of this was caused by market forces or anything other than the mass incompetence of arseholes running media into the ground. Thank you for listening.

53:21Thank you for listening to Better Offline. The editor and composer of the Better Offline theme song is Matt Ossowski. You can check out more of his music and audio projects at mattosowski.com. M-A-T-T-O-S-O-W-S-K-I.com You can email me at easy at betteroffline.com or check out betteroffline.com to find my newsletter and more links to this podcast. Thank you so much for listening. Better Offline is a production of Cool Zone Media. For more from Cool Zone Media, visit our website, coolzonemedia.com or check us out on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

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54:54More choices, less compromise. Visit buyatoyota.com for a great deal on an efficient Toyota today. Toyota, let's go places. Thursday night football is on, and it's only on Prime Video. Going deep. This week, it's a California showdown. Division rivals lock horns when the 49ers meet the Rams. What a great job. Coverage begins Thursday at 7 p.m. Eastern with football's best party, TNF Tonight, presented by Verizon. Not a Prime member, not a problem. Simply sign up for a 30-day free trial. 49ers, Rams, Thursday at 7 p.m. Eastern. Only on Prime Video. Restrictions apply. See amazon.com slash amazon prime for details.

55:34This is an iHeart Podcast.

From the publisher

The media industry has laid off over 30,000 people in the last three years as a result of an executive sect that doesn't read, write, or meaningfully contribute to society. Ed Zitron walks you through how the startup mindset destroyed Sports Illustrated, VICE and The Messenger - and how journalism can turn the tide and survive.

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