Received this email from a friend? Subscribe here.

Thursday, January 26, 2023

There's just one more day left in the work week. Dotdash Meredith cuts 7% of staff, Fox News' Benjamin Hall returns to air, DirecTV replaces Newsmax with another right-wing channel, Clubhouse's usage collapses, Elon Musk exaggerates his Capitol Hill meeting, HBO teases "Succession," "Avatar" swims to the top five, and more. But first, the A1.

THE A1

BuzzFeed's Bet on Bots

CNN Photo Illustration/BuzzFeed

Over the holidays, while most media executives were perhaps looking to get a reprieve from work, Jonah Peretti was online, fully immersed in experimenting with artificial intelligence.

The BuzzFeed co-founder and chief executive, who has always raced to test out the latest technologies, was familiar with AI and predictions of how it could one day revolutionize the media industry. In fact, BuzzFeed had dabbled in using it over the years.

But Peretti, sitting in his California home in late December, started probing how the developing robot writing technology could quickly be infused into the very DNA of BuzzFeed.

In a phone interview Thursday, Peretti told me that as he and a handful of colleagues prototyped how the technology could be used to enhance the site's hallmark quizzes, interactive articles, and other types of content, he found himself genuinely having fun. "It started to feel like we were all playing," Peretti recalled.

That "playful work," as he described it, soon "led to multiple Google docs full of the implications of the technology and how [BuzzFeed] could build this into our platform and how we could extend it to other formats."

Those efforts culminated in Peretti's formal announcement on Thursday: That BuzzFeed will work with ChatGPT creator OpenAI to assist in the creation of content for its audience and move artificial intelligence into the "core business."

Peretti told me that he understood people might read the news and conclude that BuzzFeed was, in short, moving to replace humans with robots. But Peretti insisted that is not his vision for the technology, even as he predicted other companies will likely go down that dark path.

"I think that there are two paths for AI in digital media," Peretti said. "One path is the obvious path that a lot of people will do — but it's a depressing path — using the technology for cost savings and spamming out a bunch of SEO articles that are lower quality than what a journalist could do, but a tenth of the cost. That's one vision, but to me, that's a depressing vision and a shortsighted vision because in the long run it's not going to work."

"The other path," Peretti continued, "which is the one that gets me really excited, is the new model for digital media that is more personalized, more creative, more dynamic — where really talented people who work at our company are able to use AI together and entertain and personalize more than you could ever do without AI."

Put more simply, Peretti said he envisions artificial intelligence being used to enhance the work of his employees, not replace them.

The example the company provided to me, seen in the illustration above, is the BuzzFeed quiz. Typically, a human would write the questions and perhaps a dozen responses that would be delivered to the user based on their inputs. But, with AI, the staffer could write the questions and the software could spit out a highly personalized response for the user. In the supplied example, a user would take a quick quiz and the AI would write a short RomCom using the data provided.

"We don't have to train the AI to be as good as the BuzzFeed writers because we have the BuzzFeed writers, so they can inject language, ideas, cultural currency and write them into prompts and the format," Peretti said. "And then the AI pulls it together and creates a new piece of content."

Peretti indicated to me that he had no interest in utilizing artificial intelligence to replace human journalists for authoring news articles, as the technology outlet CNET recently did with disastrous consequences (dozens of the outlet's stories written by AI were riddled with errors that required correcting.)

"There's the CNET path, and then there is the path that BuzzFeed is focused on," Peretti said. "One is about costs and volume of content, and one is about ability."

"Even if there are a lot of bad actors who try to use AI to make content farms, it won't win in the long run," Peretti predicted. "I think the content farm model of AI will feel very depressing and dystopian."

THE SIDEBAR

I asked Peretti about BuzzFeed's stock spiking 150% after the AI announcement. "I don't really have any reaction," Peretti insisted. "I think that getting emotionally invested in day-to-day stock price evaluations is not a good recipe, whether it is up or down."
On the BuzzFeed staff's reaction to the AI announcement: "I would say that for the people who are just getting exposed to it, there is a mix of intrigue and in some cases concern because of the CNET story. But as I think people learn more about it they will get more excited."
Other reactions to the news: Joe Pompeo asks, "Is artificial intelligence 'useful for journalism' or a 'misinformation superspreader?'" (Vanity Fair)
"Welcome to AI hell," writes Noor Al-Sibai. (Futurism)
James Vincent notes that The Associated Press has "used automated tools to produce stories for nearly a decade," but they've been aimed at producing "formulaic articles." (The Verge)
Nieman Lab: "Nothing like a spokesperson issuing assurances that BuzzFeed 'remains focused on human-generated journalism' to make you feel good about the future of the news industry, right?" (Nieman Lab)

——— BELOW THE FOLD ———

CNN Photo Illustration/CNN

Memphis on Edge: The death of Tyre Nichols was the lead story Thursday on all the evening newscasts and is currently the top story on the homepages of most national news organizations, as well as those in the Memphis area. "Memphis police officers indicted, booked in Tyre Nichols death," read the top headline on Memphis' Commercial Appeal Thursday evening. National news organizations descended on the Tennessee city Thursday as officials charged five officers with murder. City officials said they plan to release video, which is expected to be horrific in nature, of the deadly police encounter Friday evening. CNN is updating this page with the latest.

THE BUSINESS

CNN Photo Illustration/Joe Raedle/Getty Images

Dotdash Meredith Minimizes: Mega-publisher Dotdash Meredith — which houses well-known brands such as People magazine, Better Homes & Gardens, InStyle, Travel + Leisure, and others — became the latest company on Thursday to undergo layoffs. CEO Neil Vogel announced a workforce reduction of 7%, or 274 employees, in a memo to staff. In it, Vogel cited the stormy economic waters the entire industry is navigating. "As we have said, we are not immune to the broader challenges of the ad industry and of the economy as a whole, and today's actions are a direct response to these realities," Vogel wrote. Here's my full story.

NBCU's World Cup Win: Comcast on Thursday ended the trading day up nearly 1% after the company beat expectations. On the media side of the business, NBCU saw revenue increase about 6%, in part thanks to the World Cup which aired on Peacock. The streaming service also gained 5 million subscribers, a quarterly record that executives attributed to the World Cup. That said, Comcast is still losing billions as it pours its riches into building the nascent streamer. Comcast expects to spend about $3 billion this year on Peacock before improving. CNBC's Lillian Rizzo has more here.

► Will Comcast and NBCU make an acquisition? "We are always looking for bolt-on acquisitions that bolster our business," Jeff Shell told investors.

Hall Recalls Hell: Fox News foreign correspondent Benjamin Hall returned to the air on Thursday for his first appearance since he was severely injured in Ukraine last year during an ambush that took the lives of two of his colleagues. Speaking on "Fox & Friends," Hall recalled the assault his team came under and his recovery after losing a leg and an eye. "I've got one leg, I've got no feet, I see through one eye, one workable hand. I was burned all over, and I feel strong, I feel more confident than I ever have," Hall said. Hall also announced plans to publish a memoir due out in March.

IN THE INDUSTRY

When will the digital advertising market improve? "I really don't know," Jonah Peretti told me Thursday. "I wish I could [predict it]. What's so hard about this market is really the challenge with forecasting what is going to happen. ... That's the hardest thing. People don't know if we are planning for things to start rebounding in a month or two years."
The New York Times Guild said it held off-the-record meetings with management this week "in the hopes that it would move" the needle "toward a fair contract." But The Guild said the results were "disappointing" and that they are "ready to return to the table" in front of members. (Twitter)
Sinclair Broadcast Group, which owns the Bally Sports regional network, is headed for bankruptcy, Bloomberg reported this week. It's "perhaps the biggest financial disaster in sports media history," Daniel Frankel writes. (NextTV)
The tension in the James S. Brady Briefing Room is still palpable. The latest example: NBC's Kristen Welker sparring with Karine Jean-Pierre over whether President Biden has "answered questions" on the classified documents. (MSNBC)
Symone Sanders-Townsend spoke to Sherri Shephard about meeting with MSNBC boss Rashida Jones early on: "I sat down with Rashida ... who said, 'What kind of show would you like to have?'" (People)

MEDIA MOVES

CNN promoted Nick Paton Walsh to chief international security correspondent and named Richard Greene Jerusalem bureau chief. (CNN/CNN)
MSNBC named Alex Lupica as executive producer of Jen Psaki's forthcoming show; Raelyn Johnson as executive managing producer of the progressive network's hub on Peacock. (TV Newser)
The Hill hired Riley Gutiérrez McDermid as its new business/finance editor and promoted Sylvan Lane to assistant business/finance editor. (The Hill)
Bloomberg hired Aisha Counts to cover social media. (Twitter)

THE INFO WARS

CNN Photo Illustration/Federico Parra/AFP/Getty Images

Knocking Newsmax: DirecTV took the wind out of Newsmax's sails on Thursday when it announced a distribution deal to add the right-wing channel The First to its lineup. The move effectively denies Newsmax of the narrative it has been trying to advance over the last 72 hours: that DirecTV is biased against conservative viewpoints. For those who have not been following, Newsmax wanted DirecTV to pay it a carriage fee. DirecTV said it would not, given that Newsmax's content streams for free on other platforms, such as Roku. Newsmax, with the help of some GOP lawmakers, responded by accusing DirecTV of "censorship." Newsmax is still pushing that narrative, and its CEO Chris Ruddy is well-connected in GOP circles, but it is worth watching whether people still buy the notion that DirecTV holds a disdain for conservative voices after the satellite carrier went out of its way to add a new right-wing commentary channel to its lineup. The Daily Beast's Justin Baragona, who has been all over this story, has the details here.

► The First's CEO Chris Balfe told me Thursday evening that he believes "it's clear" that DirecTV "is trying to cater to diverse viewpoints." Balfe said The First is "thrilled" about the distribution deal with DirecTV.

IN THE BATTLEFIELD

Coming soon: The GOP-led House Oversight Committee plans to hold a Twitter Files hearing next month. (CNN)
Donie O'Sullivan, Audrey Ash, and Zachary Cohen report on how the House 1/6 committee "failed to hold social media companies to account for their role in the Capitol attack." (CNN)
Just another night on Fox News: Right-wing propagandist Sean Hannity hit Biden Thursday for "memory loss and difficulty communicating."
Jacina Hollins-Borges and Sophie Lawton note that some Fox News personalities are rallying around Harmeet Dhillon for Republican National Committee chair. (MMFA)
Former RT America employees are launching a new media venture, Lachlan Markay reports. (Axios)
Researchers have found that real-world events can lead to online hate against unrelated groups. (Guardian)
A California law that would have penalized doctors who push Covid misinformation has been blocked by a judge. (Reuters)

THE VALLEY

CNN Illustration/Apptopia

First in Reliable | Clubhouse's Collapse: For a time during the pandemic, Clubhouse was one of the hottest new social media apps in town. The world had shut down, conferences had gone virtual — and Clubhouse's rise was meteoric. But times have changed and gravity has taken hold, sending the audio-based app hurtling back to Earth. Data provided to me by Apptopia, an analytics firm focused on mobile apps, indicates that both downloads and usage of Clubhouse has plummeted since the highs seen in 2021. Downloads, which peaked at nearly 7 million a month in February 2021, have fallen to less than a half-million in December 2022. And usage has also collapsed, dropping from 200 million monthly sessions in March 2021 to roughly 15 million in December 2022. The app certainly isn't dead — but it's also not the force it was when Covid-19 sent the world into isolation. A spokesperson for Clubhouse could not be reached for comment.

'Meeting' Musk: As he tends to do, Elon Musk raised eyebrows via tweet on Thursday. The Twitter owner said that he had just concluded a meeting with House Speaker Kevin McCarthy and Minority Leader Hakeem Jeffries "to discuss ensuring that this platform is fair to both parties." But it wasn't much of a meeting, a Jeffries aide told me. Jeffries was meeting with McCarthy, the aide said, when Musk walked into the Speaker's office for a separate meeting. As Jeffries was departing the Speaker's office, the two had an interaction. "They didn't have a meeting," the aide told me. "They met. It was mostly just an introduction." It's just another reminder: don't take what Musk tweets as the word of the Bible.

TOO MANY TABS

"Now that Trump can return to Facebook, Truth Social could be all but doomed," Beatrice Nolan reports. (Insider)
Clare Duffy writes about how the decisions by Twitter and Meta to allow Trump to return "could push — or at least provide cover for — a number of other platforms to make similar moves." (CNN)
TikTok "is upending its strategy for how to deal with U.S. officials. The new game plan: Step out of the shadows," Cecilia Kang, Sapna Maheshwari, and David McCabe report, adding that the social media giant is "going on the offense." (NYT)
Lawfare's Matt Perault and Samm Sacks attended a TikTok briefing last week on "Project Texas," the company's plan to continue operating in the U.S. The duo took notes and published an article on Thursday about the social media company's strategy. (Lawfare Blog)
"Can Biden's DOJ really shatter Google's grip on digital ads?" Experts who spoke to Josh Sisco and Brendan Bordelon said it's "going to be a hard sale." (POLITICO)
"For the better part of 15 years, Google has seemed like an unstoppable force, powered by the strength of its online search engine and digital advertising business," Brian Fung writes. "But both now look increasingly vulnerable." (CNN)
Part of the vulnerability also stems from younger people using TikTok as their default search engine. But is it as effective? Lauren Goode writes about her experience spending a week using only the short-form video app for search. (WIRED)

CURTAIN CALL

CNN Photo Illustration/Claudette Barius/HBO

'Succession' Season Is Almost Here: Get ready to welcome the Roys back into your Sunday night routine. HBO on Thursday announced that the fourth season of "Succession" will premiere on March 26. In announcing the return date, HBO also released a teaser trailer, giving viewers an idea of what they can expect from the forthcoming season. You can check that out here.

'Avatar' Swims To Top 5: It's official: "Avatar: The Way of Water" has swum past "Avengers: Infinity War" to become the fifth highest-grossing movie of all time. The James Cameron sci-fi epic has now grossed $2.054 billion at the global box office. Next up for it to pass: "Star Wars: The Force Awakens" which stands at $2.07 billion at the global box office. When "Avatar" passes it, Cameron will own three of the top four of the highest-grossing movies of all time. Variety's Brent Lang and Jordan Moreau have more here.

OFF STAGE

Nothing strange about this: "Stranger Things" was the most streamed show in 2022, according to Nielsen. (Variety)
Taylor Swift is releasing the music video for her latest hit, "Lavender Haze," at midnight. (CNN)
Fox has renewed "The Simpsons," "Family Guy," and "Bob's Burgers." (Deadline)
The Peabody Awards are officially heading to Los Angeles. (THR)
Kelly Ripa and Ryan Seacrest are heading back to the Academy Awards where they'll host the "After Oscar Show." (Variety)
In a synergy move, most of the Warner Bros. Discovery portfolio will simulcast Animal Planet's "Puppy Bowl." (Deadline)
Pamela Anderson talks with Tatiana Siegel for a cover story looking at her life and forthcoming Netflix series. (Variety)

Thank you for reading! This newsletter was edited by Jon Passantino. Have feedback? Send us an email here. We will see you back in your inbox next week.