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As Vice Moves More to TV, It Tries to Keep Brash Voice

The live music at the Vice Media party on Friday shook the room. Shane Smith, Vice’s chief executive, was standing near the stage — with a drink in his hand, pants sagging, tattoos showing — watching the rapper-cum-chef Action Bronson make pizzas.

The event was an after-party, a happy-hour bacchanal for the hundreds of guests who had come for Vice’s annual presentation to advertisers and agencies that afternoon, part of the annual frenzy for ad dollars called the Digital Content NewFronts. Mr. Smith had spoken there for all of five minutes before running a slam-bang highlight reel of the company’s shows that had titles like “Weediquette” and “Gaycation.”

In the last year, Vice has secured $500 million in financing and signed deals worth hundreds of millions of dollars with established media companies like HBO that are eager to engage the young viewers Vice attracts. Vice said it was now worth at least $4 billion, with nearly $1 billion in projected revenue for 2015. It is a long way from Vice’s humble start as a free magazine in 1994.

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At the Vice after-party, the rapper Action Bronson, a host of a Vice show, made a pizza. Credit Jesse Dittmar for The New York Times

But even as cash flows freely in Vice’s direction, the company is trying to keep its brash, insurgent image. At the party on Friday, it plied guests with beers and cocktails. Its apparently unrehearsed presentation to advertisers was peppered with expletives. At one point, the director Spike Jonze, a longtime Vice collaborator, asked on stage if Mr. Smith had been drinking.

“My assistant tried to cut me off,” Mr. Smith replied. “I’m on buzz control.”

Now, Vice is on the verge of getting its own cable channel, which would give the company a traditional outlet for its slate of non-news programming. If all goes as planned, A&E Networks, the television group owned by Hearst and Disney, will turn over its History Channel spinoff, H2, to Vice.

The deal’s announcement was expected last week, but not all of A&E’s distribution partners — the cable and satellite TV companies that carry the network’s channels — have signed off on the change, according to a person familiar with the negotiations who spoke on the condition of anonymity because the talks were private.

A cable channel would be a further step in a transformation for Vice, from bad-boy digital upstart to mainstream media company.

Keen for the core audience of young men who come to Vice, media giants like 21st Century Fox, Time Warner and Disney all showed interest in the company last year. Vice ultimately secured $500 million in financing from A&E Networks and Technology Crossover Ventures, a Silicon Valley venture capital firm that has invested in Facebook and Netflix.

Those investments valued Vice at more than $2.5 billion. (In 2013, Fox bought a 5 percent stake for $70 million.)

Then in March, HBO announced that it had signed a multiyear deal to broadcast a daily half-hour Vice newscast. Vice already produces a weekly newsmagazine show, called “Vice,” for the network. That show will extend its run through 2018, with an increase to 35 episodes a year, from 14.

Michael Lombardo, HBO’s president for programming, said when the deal was announced that it was “certainly one of our biggest investments with hours on the air.”

Vice, based in Brooklyn, also recently signed a multiyear $100 million deal with Rogers Communications, a Canadian media conglomerate, to produce original content for TV, smartphone and desktop viewers.

Vice’s finances are private, but according to an internal document reviewed by The New York Times and verified by a person familiar with the company’s financials, the company is on track to make about $915 million in revenue this year.

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Vice showed a highlight reel of its TV series at the NewFronts last week in New York. Credit Jesse Dittmar for The New York Times

It brought in $545 million in a strong first quarter, which included portions of the new HBO deal and the Rogers deal, according to the document. More of its revenue now comes from these types of content partnerships, compared with the branded content deals that made up much of its revenue a year ago, the company said.

Mr. Smith said the company was worth at least $4 billion. If the valuation gets much higher, he said he would consider taking the company public.

“I don’t care about money; we have plenty of money,” Mr. Smith, who is Vice’s biggest shareholder, said in an interview after the presentation on Friday. “I care about strategic deals.”

In the United States, Vice Media had 35.2 million unique visitors across its sites in March, according to comScore.

The third season of Vice’s weekly HBO show has averaged 1.8 million viewers per episode, including reruns, through April 12, according to Brad Adgate, the director of research at Horizon Media. (Vice said the show attracted three million weekly viewers when repeat broadcasts, online and on-demand viewings were included.)

For years, Mr. Smith has criticized traditional TV, calling it slow and unable to draw younger viewers. But if all the deals Vice has struck are to work out, Mr. Smith may have to play more by the rules of traditional media. James Murdoch, Rupert Murdoch’s son and a member of Vice’s board, was at the company’s presentation on Friday, as were other top media executives.

“They know they need people like me to help them, but they can’t get out of their own way,” Mr. Smith said in the interview Friday. “My only real frustration is we’re used to being incredibly dynamic, and they’re not incredibly dynamic.”

With its own television channel in the United States, Vice would have something it has long coveted even as traditional media companies are looking beyond TV. Last year, Vice’s deal with Time Warner failed in part because the two companies could not agree on how much control Vice would have over a 24-hour television network.

Vice said it intended to fill its new channel with non-news programming. The company plans to have sports shows, fashion shows, food shows and the “Gaycation” travel show with the actress Ellen Page. It is also in talks with Kanye West about a show.

It remains to be seen whether Vice’s audience will watch a traditional cable channel. Still, Vice has effectively presold all of the ad spots to two of the biggest advertising agencies for the first three years, Mr. Smith said.

In the meantime, Mr. Smith is enjoying Vice’s newfound role as a potential savior of traditional media companies.

“I’m a C.E.O. of a content company,” Mr. Smith said before he caught a flight to Las Vegas for the boxing match on Saturday between Floyd Mayweather Jr. and Manny Pacquiao. “If it stops being fun, then why are you doing it?”

Top News China’s Intents Are Questioned as It Builds in Antarctica

HOBART, Tasmania — Few places seem out of reach for China’s leader, Xi Jinping, who has traveled from European capitals to obscure Pacific and Caribbean islands in pursuit of his nation’s strategic interests.

So perhaps it was not surprising when he turned up last fall in this city on the edge of the Southern Ocean to put down a long-distance marker in another faraway region, Antarctica, 2,000 miles south of this Australian port.

Standing on the deck of an icebreaker that ferries Chinese scientists from this last stop before the frozen continent, Mr. Xi pledged that China would continue to expand in one of the few places on earth that remain unexploited by humans.

He signed a five-year accord with the Australian government that allows Chinese vessels and, in the future, aircraft to resupply for fuel and food before heading south. That will help secure easier access to a region that is believed to have vast oil and mineral resources; huge quantities of high-protein sea life; and for times of possible future dire need, fresh water contained in icebergs.

It was not until 1985, about seven decades after Robert Scott and Roald Amundsen raced to the South Pole, that a team representing Beijing hoisted the Chinese flag over the nation’s first Antarctic research base, the Great Wall Station on King George Island.

But now China seems determined to catch up. As it has bolstered spending on Antarctic research, and as the early explorers, especially the United States and Australia, confront stagnant budgets, there is growing concern about its intentions.

China’s operations on the continent — it opened its fourth research station last year, chose a site for a fifth, and is investing in a second icebreaker and new ice-capable planes and helicopters — are already the fastest growing of the 52 signatories to the Antarctic Treaty. That gentlemen’s agreement reached in 1959 bans military activity on the continent and aims to preserve it as one of the world’s last wildernesses; a related pact prohibits mining.

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But Mr. Xi’s visit was another sign that China is positioning itself to take advantage of the continent’s resource potential when the treaty expires in 2048 — or in the event that it is ripped up before, Chinese and Australian experts say.

“So far, our research is natural-science based, but we know there is more and more concern about resource security,” said Yang Huigen, director general of the Polar Research Institute of China, who accompanied Mr. Xi last November on his visit to Hobart and stood with him on the icebreaker, Xue Long, or Snow Dragon.

With that in mind, the polar institute recently opened a new division devoted to the study of resources, law, geopolitics and governance in Antarctica and the Arctic, Mr. Yang said.

Australia, a strategic ally of the United States that has strong economic relations with China, is watching China’s buildup in the Antarctic with a mix of gratitude — China’s presence offers support for Australia’s Antarctic science program, which is short of cash — and wariness.

“We should have no illusions about the deeper agenda — one that has not even been agreed to by Chinese scientists but is driven by Xi, and most likely his successors,” said Peter Jennings, executive director of the Australian Strategic Policy Institute and a former senior official in the Australian Department of Defense.

“This is part of a broader pattern of a mercantilist approach all around the world,” Mr. Jennings added. “A big driver of Chinese policy is to secure long-term energy supply and food supply.”

That approach was evident last month when a large Chinese agriculture enterprise announced an expansion of its fishing operations around Antarctica to catch more krill — small, protein-rich crustaceans that are abundant in Antarctic waters.

“The Antarctic is a treasure house for all human beings, and China should go there and share,” Liu Shenli, the chairman of the China National Agricultural Development Group, told China Daily, a state-owned newspaper. China would aim to fish up to two million tons of krill a year, he said, a substantial increase from what it currently harvests.

Because sovereignty over Antarctica is unclear, nations have sought to strengthen their claims over the ice-covered land by building research bases and naming geographic features. China’s fifth station will put it within reach of the six American facilities, and ahead of Australia’s three.

Chinese mappers have also given Chinese names to more than 300 sites, compared with the thousands of locations on the continent with English names.

In the unspoken competition for Antarctica’s future, scientific achievement can also translate into influence. Chinese scientists are driving to be the first to drill and recover an ice core containing tiny air bubbles that provide a record of climate change stretching as far back as 1.5 million years. It is an expensive and delicate effort at which others, including the European Union and Australia, have failed.

In a breakthrough a decade ago, European scientists extracted an ice core nearly two miles long that revealed 800,000 years of climate history. But finding an ice core going back further would allow scientists to examine a change in the earth’s climate cycles believed to have occurred 900,000 to 1.2 million years ago.

China is betting it has found the best location to drill, at an area called Dome A, or Dome Argus, the highest point on the East Antarctic Ice Sheet. Though it is considered one of the coldest places on the planet, with temperatures of 130 degrees below zero Fahrenheit, a Chinese expedition explored the area in 2005 and established a research station in 2009.

“The international community has drilled in lots of places, but no luck so far,” said Xiao Cunde, a member of the first party to reach the site and the deputy director of the Institute for Climate Change at the Chinese Academy of Meteorological Sciences. “We think at Dome A we will have a straight shot at the one-million-year ice core.”

Mr. Xiao said China had already begun drilling and hoped to find what scientists are looking for in four to five years.

To support its Antarctic aspirations, China is building a sophisticated $300 million icebreaker that is expected to be ready in a few years, said Xia Limin, deputy director of the Chinese Arctic and Antarctic Administration in Beijing. It has also bought a high-tech fixed-wing aircraft, outfitted in the United States, for taking sensitive scientific soundings from the ice.

China has chosen the site for its fifth research station at Inexpressible Island, named by a group of British explorers who were stranded at the desolate site in 1912 and survived the winter by excavating a small ice cave.

Mr. Xia said the inhospitable spot was ideal because China did not have a presence in that part of Antarctica, and because the rocky site did not have much snow, making it relatively cheap to build there.

Anne-Marie Brady, a professor of political science at the University of Canterbury in New Zealand and the author of a soon-to-be-released book, “China as a Polar Great Power,” said Chinese scientists also believed they had a good chance of finding mineral and energy resources near the site.

“China is playing a long game in Antarctica and keeping other states guessing about its true intentions and interests are part of its poker hand,” she said. But she noted that China’s interest in finding minerals was presented “loud and clear to domestic audiences” as the main reason it was investing in Antarctica.

Because commercial drilling is banned, estimates of energy and mineral resources in Antarctica rely on remote sensing data and comparisons with similar geological environments elsewhere, said Millard F. Coffin, executive director of the Institute for Marine and Antarctic Studies in Hobart.

But the difficulty of extraction in such severe conditions and uncertainty about future commodity prices make it unlikely that China or any country would defy the ban on mining anytime soon.

Tourism, however, is already booming. Travelers from China are still a relatively small contingent in the Antarctic compared with the more than 13,000 Americans who visited in 2013, and as yet there are no licensed Chinese tour operators.

But that is about to change, said Anthony Bergin, deputy director of the Australian Strategic Policy Institute. “I understand very soon there will be Chinese tourists on Chinese vessels with all-Chinese crew in the Antarctic,” he said.

 

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