Media

The New Model Media Star Is Only Famous to You – The New York Times

Published

4 years ago

May 24, 2020

Back in March, I was trying to persuade my dad to stop taking the subway to work in Manhattan and join me upstate. So I paid $75 to Leonard Marshall, a retired New York Giants defensive lineman we both loved in the 1980s, to send the message.

“I put a few guys in the hospital, Bob,” he told my father solemnly. “I need you to play defense in these crazy times.”

It worked, and my father hasn’t been to Times Square since.

I had reached Mr. Marshall through Cameo, a service that allows you to buy short videos from minor celebrities. I also used Cameo to purchase a pep talk from an Olympic triathlete for my daughter ($15), an ingratiating monologue for my new boss from a former Boston Red Sox manager ($100) and a failed Twitter joke delivered by the action star Chuck Norris ($229.99).

Cameo is blowing up in this strange season because “every celebrity is really a gig economy worker,” says Steven Galanis, the company’s chief executive. They’re stuck at home, bored and sometimes hard up for cash as performances, productions and sporting events dry up. The company’s weekly bookings have grown to 70,000 from about 9,000 in early January, it says, and Mr. Galanis said he anticipated bringing in more than $100 million in bookings this year, of which the company keeps 25 percent. The company expects to sell its millionth video this week.

Cameo is, on its face, a service that allows housebound idiots to blow money on silly shout-outs. Seen another way, however, it’s a new model media company, sitting at the intersection of a set of powerful trends that are accelerating in the present crisis. There’s the rise of simple, digital direct payments, which are replacing advertising as the major source of media revenue. There’s the growing power of talent, trickling down from superstars to half-forgotten former athletes and even working journalists. And there’s the old promise of the earlier internet that you could make a living if you just had “1,000 true fans” — a promise that advertising-based businesses from blogs to YouTube channels failed to deliver.

In fact, in this new economy, some people may be able to make a living off just 100 true fans, as Li Jin, a former partner at the venture capital firm Andreessen Horowitz, argued recently. Ms. Jin calls this new landscape the “passion economy.” She argues that apps like Uber and DoorDash are built to erase the differences between individual drivers or food delivery people. But similar tools, she says, can be used to “monetize individuality.”

Many of these trends are well developed in China, but here in the United States the passion economy covers everyone from the small merchants using Shopify to the drawing instructors of the education platform Udemy.

In the mainstream heart of the media business, both artists and writers are moving quickly to find new business models as huge swaths of the media business have been wounded or shut down by the coronavirus pandemic. At Patreon, the first and broadest of the big services connecting writers and performers to audiences, the co-founder Jack Conte said he was delighted recently to see one of his favorite bands, Of Montreal, release music on the platform.

“Traditional music coming to Patreon is a watershed moment,” he said.

In the news business, journalists are carving out new paths on Substack, a newsletter service. Its most successful individual voices — like the China expert Bill Bishop and the liberal political writer Judd Legum — are earning well into six figures annually for sending regular newsletters to subscribers, though no individual has crossed the million-dollar mark, the company said.

For some writers, Substack is a way to get their work out of the shadow of an institution. Emily Atkin felt that need intensely when a climate forum she organized last year for presidential candidates, while she was a writer for The New Republic, collapsed amid a scandal over an unrelated column about Mayor Pete Buttigieg that appeared in that publication.

Credit…Rozette Rago

Now, said Ms. Atkin, who writes a confrontational climate newsletter called Heated, she’s “shockingly hopeful.”

“I don’t have any layoffs happening at my newsletter, so I’m doing better than most of the news industry,” she said.

Ms. Atkin, who is 11th on Substack’s ranking of paid newsletters and was more willing than Mr. Bishop or Mr. Legum to talk in detail about the business, said she was on track to gross $175,000 this year from more than 2,500 subscribers. Out of that, she’ll pay for health care, a research assistant and a 10 percent fee to Substack, among other costs.

For others, Substack is a way to carry on with work they’re passionate about when a job goes away, as Lindsay Gibbs found when the liberal news site ThinkProgress shut down last year and took her beat on sexism in sports with it.

Now, she has more than 1,000 subscribers to Power Plays, paying as much as $72 a year.

Both of them started with $20,000 advances from the platform.

“The audience connecting directly with you and paying directly is a revolutionary change to the business model,” Substack’s chief executive, Chris Best, told me.

It’s hard to imagine even the most successful writers, like Mr. Bishop and Ms. Atkin, posing a major threat to the titans of media anytime soon, especially as a few big institutions — whether in news or streaming video — dominate each market. But the two writers’ path to success points to the reality that the biggest threat to those institutions may come from their talented employees.

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The Coronavirus Outbreak

Frequently Asked Questions and Advice

Updated May 20, 2020
- What are the symptoms of coronavirus?
  
  Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
- How many people have lost their jobs due to coronavirus in the U.S.?
  
  Over 38 million people have filed for unemployment since March. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
- How can I protect myself while flying?
  
  If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
- Is ‘Covid toe’ a symptom of the disease?
  
  There is an uptick in people reporting symptoms of chilblains, which are painful red or purple lesions that typically appear in the winter on fingers or toes. The lesions are emerging as yet another symptom of infection with the new coronavirus. Chilblains are caused by inflammation in small blood vessels in reaction to cold or damp conditions, but they are usually common in the coldest winter months. Federal health officials do not include toe lesions in the list of coronavirus symptoms, but some dermatologists are pushing for a change, saying so-called Covid toe should be sufficient grounds for testing.
- Can I go to the park?
  
  Yes, but make sure you keep six feet of distance between you and people who don’t live in your home. Even if you just hang out in a park, rather than go for a jog or a walk, getting some fresh air, and hopefully sunshine, is a good idea.
- How do I take my temperature?
  
  Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
- Should I wear a mask?
  
  The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
- What should I do if I feel sick?
  
  If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
- How do I get tested?
  
  If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
- How can I help?
  
  Charity Navigator, which evaluates charities using a numbers-based system, has a running list of nonprofits working in communities affected by the outbreak. You can give blood through the American Red Cross, and World Central Kitchen has stepped in to distribute meals in major cities.

.cls-1
fill: #111;

That dynamic was on display in a confrontation between Barstool Sports and the hosts of its hit podcast, “Call Your Daddy,” as my colleague Taylor Lorenz reported last week. Media company stars, with big social media followings and more and more ways to make money, are less and less willing to act like employees. (“The ‘Call Your Daddy’ girls would be making over half a million dollars a year with me,” Mr. Galanis of Cameo said. “High Pitch Erik from ‘The Howard Stern Show’ is making low six figures.”)

Substack represents a radically different alternative, in which the “media company” is a service and the journalists are in charge. It’s what one of the pioneers of the modern newsletter business, the tech analyst Ben Thompson, describes as a “faceless” publisher. And you can imagine it or its competitors offering more services, from insurance to marketing to editing, reversing the dynamic of the old top-down media company and producing something more like a talent agency, where the individual journalist is the star and the boss, and the editor is merely on call.

Credit…Cameo

The new passion-economy media companies are converging in some ways. The ones like Patreon and Substack, which operate primarily in the background, are now looking at careful ways to bundle their offerings, their executives said. Medium, which allows you to subscribe to its full bundle of writers, is looking for ways to foster more intimate connections between individuals and their followers, its founder, Ev Williams, said. Cameo, which has a front page in its app and website but is mostly selling one-off shout-outs, is shifting toward a model that is more like subscribing to a celebrity: For a price, you’ll be able to send direct messages that appear in a priority inbox.

“We think messages back and forth is where the puck is going with Cameo,” Mr. Galanis said.

Is this good news? The rise of these new companies could further shake our faltering institutions, splinter our fragmented media and cement celebrity culture. Or they could pay for a new wave of powerful independent voices and offer steady work for people doing valuable work — like journalists covering narrow, important bits of the world — who don’t have another source of income. Like the whole collision of the internet and media, it will doubtless be some of both.

In Silicon Valley, where the East Coast institutions of journalism are often seen as another set of hostile gatekeepers to be disrupted, leading figures are cheering a possible challenger. Mr. Best, the Substack chief, told me that the venture capitalist Marc Andreessen, whose firm has invested in the company, said he hoped it would “do to big media companies what venture capital did to big tech companies” — that is, peel off their biggest stars with the promise of money and freedom and create new kinds of news companies.

One of the things I find most heartening in these unequal times, though, is the creation of some new space for a middle class of journalists and entertainers — the idea that you can make a living, if not a killing, by working hard for a limited audience. Even people who play a modest role in a cultural phenomenon can get some of the take, which was what happened with the Netflix documentary “Tiger King.”

When the documentary hit big in March, Cameo signed up 10 of its ragtag cast of, mostly, amateur zookeepers. That came just in time for Kelci Saffery, best known on the show for returning to work soon after losing a hand to a tiger. Mr. Saffery now lives in California, and lost his job at a furniture warehouse when the pandemic hit. To his shock, he has earned about $17,000, as well as a measure of recognition, even as the requests are slowing down.

“Every day I’m at least getting one, and for me that still means that one person every day is thinking, ‘Hey, this would be cool,’ and to me that’s significant,” he said. As for the money, “that could send one of my children to college.”

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Media

Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

Published

3 weeks ago

August 23, 2024

Harry Miller

Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

Published

3 weeks ago

August 23, 2024

Harry Miller

Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

Media

Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition

Published

3 weeks ago

August 20, 2024

Harry Miller

Trump Media & Technology Group’s stock has taken a significant hit, dropping more than 11% this week following a disappointing earnings report and the return of former U.S. President Donald Trump to the rival social media platform X, formerly known as Twitter. This decline is part of a broader downward trend for the parent company of Truth Social, with the stock plummeting nearly 43% since mid-July. Despite the sharp decline, some investors remain unfazed, expressing continued optimism for the company’s financial future or standing by their investment as a show of political support for Trump.

One such investor, Todd Schlanger, an interior designer from West Palm Beach, explained his commitment to the stock, stating, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.” Schlanger, who owns around 1,000 shares, is a regular user of Truth Social and is excited about the company’s future, particularly its plans to expand its streaming services. He believes Truth Social has the potential to be as strong as Facebook or X, despite the stock’s recent struggles.

However, Truth Social’s stock performance is deeply tied to Trump’s political influence and the company’s ability to generate sustainable revenue, which has proven challenging. An earnings report released last Friday showed the company lost over $16 million in the three-month period ending in June. Revenue dropped by 30%, down to approximately $836,000 compared to $1.2 million during the same period last year.

In response to the earnings report, Truth Social CEO Devin Nunes emphasized the company’s strong cash position, highlighting $344 million in cash reserves and no debt. He also reiterated the company’s commitment to free speech, stating, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”

Despite these assurances, investors reacted negatively to the quarterly report, leading to a steep drop in stock price. The situation was further complicated by Trump’s return to X, where he posted for the first time in a year. Trump’s exclusivity agreement with Trump Media & Technology Group mandates that he posts personal content first on Truth Social. However, he is allowed to make politically related posts on other social media platforms, which he did earlier this week, potentially drawing users away from Truth Social.

For investors like Teri Lynn Roberson, who purchased shares near the company’s peak after it went public in March, the decline in stock value has been disheartening. However, Roberson remains unbothered by the poor performance, saying her investment was more about supporting Trump than making money. “I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said, adding that she sees Trump’s return to X as a positive move that could expand his reach beyond Truth Social’s “echo chamber.”

The stock’s performance holds significant financial implications for Trump himself, as he owns a 65% stake in Trump Media & Technology Group. According to Fortune, this stake represents a substantial portion of his net worth, which could be vulnerable if the company continues to struggle financially.

Analysts have described Truth Social as a “meme stock,” similar to companies like GameStop and AMC that saw their stock prices driven by ideological investments rather than business fundamentals. Tyler Richey, an analyst at Sevens Report Research, noted that the stock has ebbed and flowed based on sentiment toward Trump. He pointed out that the recent decline coincided with the rise of U.S. Vice President Kamala Harris as the Democratic presidential nominee, which may have dampened perceptions of Trump’s 2024 election prospects.

Jay Ritter, a finance professor at the University of Florida, offered a grim long-term outlook for Truth Social, suggesting that the stock would likely remain volatile, but with an overall downward trend. “What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter said, highlighting the company’s struggle to produce a sustainable business model.

Still, for some investors, like Michael Rogers, a masonry company owner in North Carolina, their support for Trump Media & Technology Group is unwavering. Rogers, who owns over 10,000 shares, said he invested in the company both as a show of support for Trump and because of his belief in the company’s financial future. Despite concerns about the company’s revenue challenges, Rogers expressed confidence in the business, stating, “I’m in it for the long haul.”

Not all investors are as confident. Mitchell Standley, who made a significant return on his investment earlier this year by capitalizing on the hype surrounding Trump Media’s planned merger with Digital World Acquisition Corporation, has since moved on. “It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.” Now, Standley is staying away from the company, citing the lack of business fundamentals as the reason for his exit.

Truth Social’s future remains uncertain as it continues to struggle with financial losses and faces stiff competition from established social media platforms. While its user base and investor sentiment are bolstered by Trump’s political following, the company’s long-term viability will depend on its ability to create a sustainable revenue stream and maintain relevance in a crowded digital landscape.

As the company seeks to stabilize, the question remains whether its appeal to Trump’s supporters can translate into financial success or whether it will remain a volatile stock driven more by ideology than business fundamentals.