With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today.
This is an archival story that predates current editorial management.
This archival content was written, edited, and published prior to LAist's acquisition by its current owner, Southern California Public Radio ("SCPR"). Content, such as language choice and subject matter, in archival articles therefore may not align with SCPR's current editorial standards. To learn more about those standards and why we make this distinction, please click here.
Game Changer: Deadline.com's Parent Company Buys Variety
Photo of the Variety building in L.A. by atomicshakespeares via the LAist Featured Photos pool on Flickr
A big move in the showbiz trade news biz was revealed today: Penske Media Corporation, parent company of the wildly popular Hollywood insider site Deadline.com, has purchased trade rag veteran Variety.Deadline was founded by cutthroat industry journalist and blogger Nikki Finke, who is learning that despite the big deal, she is going to stay put. "Deadline's founder and editor-in-chief Nikki Finke will not be involved in running Variety," notes L.A. Times blog Company Town, who spoke with Penske CEO Jay Penske:
"What Nikki has architected at Deadline is simply amazing," Penske said. "To alter or change the chemistry of Deadline would be in our opinion a huge mistake."
Finke is know for her fearless, fast-as-lightening reporting of showbiz industry news, and her hilariously well-crafted headlines, and is considered one of the forces that kept Variety down of late.
In the official release about the purchase, Penske said:
Sponsored message
“Since 1905, Variety has been the world’s premier entertainment news source, and is today one of the most recognized global media brands. We are thrilled to welcome Variety and its exceptional team into the PMC organization. As part of this significant acquisition, we plan to rapidly build upon Variety’s foundation while extending this invaluable brand’s presence across the web, broadcast, mobile, and international markets.”
Deadline's Mike Fleming blogs that he expects significant changes, however: "I would be surprised, for instance, if Variety continues behind a pay wall, or continues to exist in its current form as a daily and weekly print publication," he writes.
Indeed, the web era has perhaps been part of Variety's troubles of late. That's the opinion of rival publication The Hollywood Reporter, in their coverage of the estimated $25 million sale: "In recent years, Variety has struggled in figuring out the best way to adapt to digital times." And again, that darn paywall is what many see as holding them back.
The numbers don't lie, as Company Town breaks down:
Variety.com had a little over 17,000 paying users (some of whom also subscribe to print editions). Because of its pay wall, the website's traffic lags far behind its competitors. In August Variety.com had 320,000 unique visitors, according to ComScore, while HollywoodReporter.com and Deadline.com, which are both free to read, had 5.1 million and 2.4 million, respectively.
So is this good news or bad news for Finke, Deadline, the Penske empire, and Variety? Penske explains:
"We are not buying Variety to gut the newsroom. We are buying the business to build it. Are there going to be changes? Yes. Do we want to reduce our dependency on print revenues? Yes. How quickly that can happen, we'll know more in the coming months."
At LAist, we focus on what matters to our community: clear, fair, and transparent reporting that helps you make decisions with confidence and keeps powerful institutions accountable.
Your support for independent local news is critical. With federal funding for public media gone, LAist faces a $1.7 million yearly shortfall. Speaking frankly, how much reader support we receive now will determine the strength of this reliable source of local information now and for years to come.
This work is only possible with community support. Every investigation, service guide, and story is made possible by people like you who believe that local news is a public good and that everyone deserves access to trustworthy local information.
That’s why we’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Thank you for understanding how essential it is to have an informed community and standing up for free press.
Your support for independent local news is critical. With federal funding for public media gone, LAist faces a $1.7 million yearly shortfall. Speaking frankly, how much reader support we receive now will determine the strength of this reliable source of local information now and for years to come.
This work is only possible with community support. Every investigation, service guide, and story is made possible by people like you who believe that local news is a public good and that everyone deserves access to trustworthy local information.
That’s why we’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Thank you for understanding how essential it is to have an informed community and standing up for free press.
Senior Vice President News, Editor in Chief
