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Thursday, April 04, 2024

The solar eclipse gives way to conspiracy theories, Bob Iger sits with David Faber after vanquishing Nelson Peltz, Forbes is caught running ads on a copycat website, Fox News renews Greg Gutfeld while POLITICO poaches Jonathan Greenberger from ABC, Barry Diller rips Donald Trump's Truth Social, Meta's stock touches record high, TikTok unleashes a marketing blitz amid scrutiny, Denis Villeneuve seems ready to take on a nuclear film of his own, and so much more. But first, the A1.

THE A1

Checkmark of Shame

CNN Photo Illustration/Beata Zawrzel/NurPhoto/Getty Images

Elon Musk has given up, restoring the "lords and peasants" blue checkmark system he once admonished and assailed as elitism.

After insisting that journalists, celebrities, and other notable users pay him $8 a month for Twitter's once-coveted blue checkmark, the erratic billionaire has thrown in the towel, widely restoring blue badges to prominent accounts on the imperiled social media platform.

A number of people — including yours truly — woke up on Thursday to learn that X had declared them "an influential member of the community" and, thus, would be giving them "a complimentary subscription to X Premium." The message the company sent to those users noted that X "reserves the right to cancel the complimentary subscription in its sole discretion." (Translation: If you're mean to Musk, you are likely putting yourself in jeopardy of losing it.)

The move is a major reversal by Musk, who made user payments for the blue checkmark a central tenet of his plan to build a subscription business on X and reduce the platform's heavy dependency on advertiser dollars. "Trash me all day, but it'll cost $8," Musk insisted, endlessly repeating a version of that message to the vocal and constant complaints of users.

"To all complainers, please continue complaining, but it will cost $8," Musk declared.

Musk — who often uses his perch as the most-followed user on X to share absurd and dangerous right-wing conspiracy theories — also took glee in stripping journalists of their status. The thin-skinned Musk has repeatedly smeared the press and, when he took over the platform, made it a point to strip journalists of any special cachet they carried, framing it as a move aimed at empowering the masses.

"Twitter's current lords & peasants system for who has or doesn't have a blue checkmark is bullshit," Musk wrote in November 2022. "Power to the people!"

Naturally, users pushed back against his plans, noting that verification of journalists offered the public a helpful way of quickly identifying credible sources of news. In reality, the legacy verification system benefited the average user far more than it benefited those who were given the badges. But Musk, blind or disinterested in that reality, vigorously pushed back.

"You represent the problem: journalists who think they are the only source of legitimate information," Musk wrote to one protesting user. "That's the big lie."

"Empowering the public relative to journalists sure is a great way to earn negative press 🤣🤣," Musk said in another post.

But most journalists and other notable users who once sported the checkmark declined to fork over the cash. Instead, the people willing to shell out money for the status symbol consisted of a cocktail of Musk super-fans, right-wing trolls, and others who would not have been able to attain a checkmark under the legacy system which required them to be a notable public figure. (Ironically, a fair continent of this group spent years mocking journalists for supposedly being obsessed with the checkmark, only to pay $8 for it while the journalists declined).

Even worse, trolls impersonating the identities of others were granted blue checkmarks, stripping the symbol of its core value: identity verification.

As a direct result, the once-coveted status symbol lost all its value, instead becoming a toxic sign of obedience and fealty to Musk, which many users rejected. This week, when Musk suddenly appended checkmarks to the accounts of "influential members of the community," plenty of users loudly noted that they had not paid for it.

"What happened? I didn't pay for this. I would NEVER pay for this," actress Yvette Nicole Brown posted on X.

"Stating for the record I did NOT pay to have my check mark restored," added the conservative commentator Amanda Carpenter.

A representative for X did not respond to a request for comment on Musk's move to restore the blue checkmarks. But it's obvious.

Since Musk's disastrous takeover of the social media company, the platform has been on a downward spiral. Notably, X's daily usage has plummeted over the last year, with the user base down a staggering 23%, according to data Sensor Tower provided NBC News' David Ingram. Daily active users are down an additional 18%, the analytics firm added.

That's an alarming trend for the platform, which likes to market itself as the place where live conversation occurs. Meanwhile, Meta's X competitor, Threads, continues to show growth, with Mark Zuckerberg telling investors in February that the platform has grown to more than 130 million monthly active users. Zuckerberg has said that his goal is to get Threads to 1 billion users. And other platforms like Mastodon and BlueSky have also become refuges for Twitter exiles.

It all spells trouble for Musk, whose platform continues to descend into an uninhabitable right-wing fever swamp (quite frankly, it already can be fairly defined as such). Don't just take my word for it, either. The evidence is plain as day in Musk's own public actions. The billionaire has grown so desperate to lure back one-time power users, he is reversing course on what was his rallying cry against the elites.

Gone are the days when Musk poked the journalists and celebrity class about paying him $8 a month. Now, Musk is so desperate to see their return, he's willing to crown them with the blue badge and restore their accounts to "lord" status. That says it all.

——— BELOW THE FOLD ———

CNN Photo Illustration/Javier Zayas Photography/Getty Images

Total Eclipse of Sanity: Wild conspiracy theories are circulating across the internet ahead of Monday's total solar eclipse. Many of the conspiracy theories are steeped in religious gobbledygook, with some people suggesting that the rapture may occur because the eclipse will pass over seven towns named Nineveh (to be clear, the eclipse will not, in fact, pass over seven towns named Nineveh). The debunked conspiracies appear absurd, but they're amassing millions of views on platforms like TikTok and YouTube. Matt Novak has more here.

At the same time, over in right-wing media, outlets like InfoWars and The Gateway Pundit are exploiting the astronomical phenomenon to fan fears with out-of-context and outrageous stories. "CONVERGENCE: The Solar Eclipse, CERN, Lucifer, The Vatican, And Reptilian Venom Peptides," read one headline on InfoWars Thursday. Another asked, "Are Globalists Using The April 8th Eclipse For An Occult Ritual?" Meanwhile, a poll ran on the Alex Jones-operated site asking about the possibility of a "planned false flag." Rolling Stone's EJ Dickson has more.

THE INDUSTRY

CNN Photo Illustration/CNBC

Bob's Back!: One day after vanquishing Nelson Peltz, Bob Iger sat for a lengthy interview with CNBC's David Faber. The two covered a wide array of topics, touching on everything from Peltz's proxy war to the Disney+ streaming strategy to succession to ESPN. Here are the SparkNotes:

► On the proxy war: Iger called his victory "decisive" and said it was a "true endorsement of the board and management and the direction we're taking this great company." Iger called the entire process "distracting" and said he looks forward to now focusing on leading Disney forward. But he said that if there was a "positive" from the whole saga, it's that it "gave the board and some members of management an opportunity to engage with many shareholders, perhaps on an even deeper level, and have a good honest, candid dialogue."

► On succession: Iger said that finding his successor is "the board's number one priority" and that they are "treating it with a sense of urgency." He added members of the succession committee have been "spending a significant amount of time" on the matter. Asked about the failed Bob Chapek transition, Iger pointed to the Covid-19 pandemic as creating unique challenges that will not be present this time around.

► On Disney's streaming strategy: Iger again talked about turning Disney+ into "not just a profitable business, but into a growth business" with "margins that this company and our shareholders would be really proud of." Pressed on whether that would mean there would be double-digit profit margins, Iger replied, "Eventually, yes. Double-digit margins, of course." Iger pointed to cracking down on password sharing as one tactic the company will employ to improve its numbers.

► On the streaming competition: Iger once again referred to Netflix as the "gold standard in streaming" and said the company has done "a phenomenal job." But he said some other streamers will likely not survive on their own. "There's got to be some consolidation in the business," Iger said, not ruling out that Disney could participate in some sort of entertainment bundle as well.

► On the sports super-streamer: Iger said that Disney, Fox Corporation, and Warner Bros. Discovery are "proceeding as though this is going to clear basically government scrutiny." He said he has "a sense" of the price point it will be made available at, but declined to elaborate. Iger also left open the possibility that subscribers to the super-streamer will get ESPN's forthcoming service at a lower price, saying, "I think you have to assume that if someone is already buying the joint venture product, that will take it into be taken into account."

► On Elon Musk and Ron DeSantis: Iger said he "would hope" that after settling Disney's lawsuit against Florida Gov. Ron DeSantis, there will be no more hostilities. Asked about Elon Musk attacking him, Iger said he ignores the billionaire. "There's no relevance to the Walt Disney Company or to me," Iger said of Musk's criticisms. As Faber tried to squeeze a follow-up question on Musk to Iger, the Disney boss demanded, "Next subject!"

► On criticism Disney is "woke": Iger said he believed the "noise has sort of quieted down" and that he has "been preaching for a long time" that the "number one goal is to entertain." Iger added, "The bottom line is that infusing messaging as a sort of a number one priority in our films and TV shows is not what we're up to."

IN THE MARKET

Nelson Peltz also appeared on CNBC with Jim Cramer and declined to rule out another proxy fight if Bob Iger doesn't govern to his liking: "I hope they can do all the things they assured us they were going to do ... If they do it, they won't hear from me again. If they don't ... you may be seeing me on your show next year doing this same thing again." (CNBC)
To that point, Alex Sherman writes that "if Disney struggles to show investors the entertainment giant has a coherent strategy, or if Iger kicks the succession can down the road once more, activist investors may be knocking on the company's door again during next year's annual meeting to demand change." (CNBC)
But, for now, Peltz's "Restore the Magic" website has gone offline, delivering visitors a 404 page. RIP!
David Ellison's vision after merging Paramount Global and Skydance calls for the combined company to "team up with another major company on a streaming joint venture," Benjamin Mullin and Lauren Hirsch report. (NYT)
Sharon Waxman looks at "the end of the Endeavor mega-dream," writing that Ari Emanuel "dreamed of running a global entertainment company," but noting it only "lasted three years." (The Wrap)
What's next for Endeavor? Sean McNulty writes, "I'm not saying Silver Lake is looking to do a fire sale of Endeavor assets (while holding onto WME and 51% of TKO), but they sure are putting in some big executive incentives in this deal to encourage it." (The Ankler)
Diamond Sports Group "has secured a crucial carriage agreement with Charter Communications," Anthony Crupi reports. (Sportico)
Brent Lang and Rebecca Rubin: Film fans keep splurging on IMAX, so why hasn't Wall Street gotten on board?" (Variety)

THE FOURTH ESTATE

Yikes! Forbes got caught running paid ads intended for its digital website on a copycat website, Patience Haggin reports. (WSJ)
"The trimming at NFL Network continues as on-air personalities Melissa Stark, Andrew Siciliano, James Palmer, and Will Selva are all out," Andrew Marchand reports. (The Athletic)
Benjamin Hall, the Fox News correspondent who was severely injured in Ukraine two years ago, will host a two-part docuseries for Fox Nation, titled "Surviving Hamas: A Benjamin Hall Special." (The Wrap)
Adam Moss writes about life after serving as New York magazine's top editor: "When I quit my magazine job, I decided to try my hand as an artist." (Vulture)
Delia Cai really doesn't like media parties! "I used to want to be a part of the media party circuit so bad. As a young person aspiring to be a writer, I would zoom into certain Instagram Stories of interest, wondering how everyone there got to go. Now, as a person attending them, I am pissed off! I was lied to. Bamboozled. Swindled." (Deez Links)

MEDIA MOVES

Fox News extended Greg Gutfeld's contract. (Variety)
POLITICO hired Jonathan Greenberger, who has served as ABC News' Washington bureau chief, as executive vice president. (Deadline)
Vice Media tapped Pete Gaffney as its interim TV boss as Morgan Hertzan exits the embattled company. (Deadline)
The Nation appointed Razia Iqbal to its editorial board. (The Nation)
The Council on Foreign Relations hired Millie Tran, most recently a Condé Nast executive, as its chief digital content officer. (CFR)
Spotify named Christian Luiga chief financial officer. (THR)

THE INFO WARS

CNN Photo Illustration/CNBC

Diller Rips Donald: If Donald Trump were tuned into CNBC on Thursday, he probably did not walk away very happy! Barry Diller joined "Squawk Box" and ripped into Truth Social, which now trades on Wall Street, calling the social media company a "scam" and saying that the GOP frontrunner is pulling a "con" on people. "It's ridiculous," Diller said, adding that Trump Media has "no revenue." Asked why people would buy the stock, Diller said the "dopes" purchasing it are not doing so because it is a good company. CNBC's Dan Mangan has more.

IN THE BATTLEFIELD

Fox News "spent under 17 minutes covering an Israeli airstrike that killed seven World Central Kitchen workers in Gaza," Chloe Simon, Noah Dowe, and Emma Mae Weber report. That's compared to 4 hours and 13 minutes from CNN and 3 hours and 32 minutes from MSNBC during the same period covering April 1 to April 3. (MMFA)
The CBS News-Catherine Herridge divorce is getting ugly. Herridge will testify before the Jim Jordan-led House Judiciary Committee about the "circumstances surrounding her exit from CBS News," Alexandra Steigrad reports, adding that sources told her Herridge alleges "higher-ups" put "roadblocks" on Hunter Biden reporting. (NY Post)
Bill Clinton will release a "remarkably candid" and "richly detailed" memoir in November — but it is due out after the election. (CNN)
Dan Rather said his opposition to Trump is "not about politics," but about "rejecting a cheating, lying, racist, treasonous, fascist and vile man who attacks the free press, and wants to lead the country I love." (The Wrap)
"This is the most successful Trans Visibility Day in history": "The Daily Show" jokingly thanked Fox News for having "raised trans awareness for 500 straight hours." (The Wrap)

THE VALLEY

CNN Photo Illustration/SeongJoon Cho/Bloomberg/Getty Images

Meta to the Moon: How high will Meta's stock go? The Mark Zuckerberg-led company set an intraday record on Thursday, climbing to $530 before later closing at about $511. The mid-day surge that led to the record came as a result of analysts at Jefferies and RBC lifting their targets for the Big Tech stock. "Meta has too many advantages to count," the Jefferies analysts wrote. And the company could grow even more powerful should a TikTok ban come to fruition, with Reels set to then dominate the short-form video content market. CNBC's Ashley Capoot has more here.

TOO MANY TABS

TikTok "is publicizing its economic impact through a newly commissioned report amid increased scrutiny from U.S. lawmakers," Eleanor Hawkins reports. (Axios)
Meanwhile, Sapna Maheshwari details how TikTok is turning to "nuns, veterans, and ranchers in [its] marketing blitz." (NYT)
Shares in Reddit have — again — sunk below the company's $47 IPO debut, ending Thursday at $45.78.
Winston Cho spoke with three beta testers of OpenAI's Sora to learn more about the video tool. "There's a lot of hot air about just how powerful this is and how this is going to replace everything and how we don't need to do anything," one told him. (THR)
OpenAI's GPT Store has prompted some copyright complaints, Kate Knibbs reports. (WIRED)
"Google Books is indexing low quality, A.I.-generated books that will turn up in search results," Kimberly Farmer reports. (404 Media)
"Meta's A.I. image generator really struggles with the concept of interracial couples," Catherine Thorbecke reports. (CNN)
Snapchat introduced what it called the "Snap Advanced Partner Program" which enables advertising agencies the ability to work more closely with the company "to create innovative solutions that build stronger full funnel campaigns and drive results." (Snap)

CURTAIN CALL

CNN Photo Illustration/Kristina Bumphrey/Variety/Getty Images

Villeneuve's Atomic Vision: Pay attention, "Oppenheimer" fans! After the success of Christopher Nolan's Oscar-winning biopic on the father of the atomic bomb, another acclaimed filmmaker is seemingly ready to try his hand at a nuclear-themed movie. Legendary Entertainment has optioned Annie Jacobsen's nonfiction "Nuclear War: A Scenario" and will likely partner with "Dune" director Denis Villeneuve on the project. Of course, Villeneuve is going to be busy giving us "Dune: Messiah." But Deadline's Mike Fleming Jr. explained that "the expectation" is that he will pick up work on "Nuclear War" afterward. Fleming Jr. has more here.

OFF STAGE

Another major music rights deal! Kiss sold its catalog, brand name, and IP to Pophouse Entertainment Group in a $300-million-plus deal. (AP)
Beyoncé released a remix of "Texas Hold 'Em" — and it includes a new verse. (Pitchfork)
Stephen Colbert fought tears as he paid tribute to his longtime executive assistant, Amy Cole, who died the day before from cancer. (Deadline)
Good news for Coachella fans! YouTube TV is bringing its multi-view stream feature to this year's festival. (The Verge)
Margot Robbie's LuckyChap is teaming up with Olivia Wilde on "Avengelyne." (Deadline)
Jonathan Nolan — who collaborated with his brother, Sir Christopher, on "The Prestige," "Interstellar," and "The Dark Knight" and was the showrunner for HBO's "Westworld" — is back as director for Amazon's "Fallout" series, the latest video game adaptation. (THR)
Warner Bros. released a first look of the Maggie Gyllenhaal-led "The Bride," with Christian Bale as a Frankenstein monster. (Deadline)
A "Legally Blonde" spinoff is in the works at Amazon from Reese Witherspoon's Hello Sunshine. (Deadline)
Kate Upton is headed to Hulu via a new unscripted series, "Dress My Tour." (Variety)
Hulu also landed Mindy Kaling's next comedy series, "Murray Hill," produced by Warner Bros. TV. (Deadline)

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 next week.

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