Offline with Jon Favreau - Fox News’s Succession Battle, Breaking Up Amazon, and Twitter CEO’s Disastrous Q&A
Episode Date: October 1, 2023Brian Stelter, longtime media journalist and author of the forthcoming Fox News exposé Network of Lies, joins Offline to unpack what Rupert Murdoch’s retirement means for broadcast media, American ...democracy, and his four kids. Will Fox News look any different with Lachlan at the helm? Could his liberal siblings force a sale to an antagonistic, Swedish CEO? But first, Jon and Max put their heads together to break down how a new agreement on AI helped end the writer’s strike, why the FTC has its knives out for Amazon, and what on earth X CEO Linda Yaccarino was talking about at the Code Conference. For a closed-captioned version of this episode, click here. For a transcript of this episode, please email transcripts@crooked.com and include the name of the podcast.
Transcript
Discussion (0)
You know, I said earlier, getting fired was the best thing that ever happened to me.
So was having to get off the news hamster wheel and not have to care so much.
I used to spend Saturday nights, you know, I'd be in bed.
I'd be worried about what's going to happen Sunday morning.
What should I do on my show?
What guests should I have on?
To be off makes me think a lot differently about the news ecosystem and like how the
news world functions and sometimes doesn't function.
We oftentimes have the most interest in a news story
when there's the least amount of information. You know, something's breaking news and, you know,
we really know absolutely nothing about it, but that's when everybody wants to know everything.
And then by the time we actually know all the facts, everybody's moved on.
There's got to be a better way. I'm Jon Favreau. Welcome to Offline.
Maybe the outtake this week should be Linda Yaccarino.
Oh my god, cannot fucking get enough.
Welcome to Offline, I'm Jon Favreau.
I'm Max Fisher.
You just heard Brian Stelter, media reporter.
We had a great conversation about the Murdoch succession drama at Fox
and the future of media in the internet age.
So we're going to hear that a little bit later.
But first, Max and I are going to talk about
the government's new antitrust lawsuit against Amazon
and new ex-CEO Linda Iaccarino's disastrous attempt
to defend Elon Musk during one of the
most uncomfortable interviews I've ever heard.
Oh my God, it's garbage fires across Silicon Valley lately.
It's not a good run for our pals up north.
You're just going to want to listen in
until you hear the Linda Iaccarino excerpt that we're going to play
because it's good stuff.
It's really something.
And then you're going to want to watch the whole thing.
I've truly never heard anything like it.
No.
But first, the writer's strike is over.
The Hollywood Studios and the Writers Guild of America
have reached an agreement.
Lots of big wins for the writers.
And one of the big sticking points that we've been talking about on this show was over the use of artificial intelligence.
The agreement essentially says that studios can use AI written material. But if they give writers a draft of a script or screenplay that was written by artificial intelligence, they have to A, disclose it.
B, give the writers full credit.
There's a part in there that says, like, we agree that artificial intelligence is not human and therefore cannot get a writing credit.
It's like, wow, great.
Wow, way to dunk on the open AI.
In love with Kevin Roos and still not a human?
Come on.
Where's your compassion?
And I think probably the most important provision,
they have to pay the writers exactly what they would have
if the writers had written the original draft themselves.
So you can't say like, all right, here's the draft script
and we're just going to pay you for a punch up or a rewrite or whatever.
They have to pay them for the original and then the writers get the original credit.
There's some other stuff in the agreement on AI, but let's start there.
First battle of humans versus the machines.
Who won?
I honestly think it's a pretty good compromise because the kind of the give and take is they can use AI.
You can use the tools. It's not banished from writer rooms. It's not banished from studios, but it cannot be used by a studio to substitute either
credit or payment for a writer. So it's not going to be, at least if everyone follows the spirit and
litter of this, not going to be putting writers out of work, not going to be losing credits,
not going to be losing money for it. I think one of the risks here was always that if they try to
completely banish AI, then there's just going to be AI is still going to exist. So you're just waiting to
be kind of competed out. But this allows everyone to kind of coexist with it in a way that seems
like a really good compromise. It does not solve the AI problem. And there's meaningfully,
there's some provisions in here that basically punt and say, if the law later says that you
can't train AI or there are limits on how much you can
train AI on human written material then we'll come back to that later but if this becomes the model
for how we kind of deal with AI's role in intellectual property I think that's pretty good
yeah and like we should say that at first the writers were demanding like no no ai right and the studios came back with how about a meeting
once a year yeah right so this is definitely an improvement on that yeah the one thing i worry
about and this is probably longer term is so yeah if the studio gives writers an ai script and says
all right this is it's a little too chat gpt we got to punch this up right then they're then they're set right they're not going to get undercut in terms of their wages but what
happens if a studio is like churns out a draft ai script and then it's like yeah that's pretty good
we're good to go yeah so that and it's not it's not at that level yet but i'm thinking about my
conversation with simon rich from last week and i do if it, now I don't know how you would have guarded against that in the negotiations
because I mean,
the only way you'd basically have to say studios must never be able to use
artificial intelligence on its own without a writer.
Right.
I mean,
I think that's,
that's a good point.
And we're negotiating around,
I mean,
WGA SAG,
everybody's negotiating around AI as it is
right now, which is probably shrewdest for everyone involved, because you don't want to
make huge concessions for some version of AI that may turn out to never actually come about. But,
you know, I think that you're right that this is going to have to be revisited probably many
times in the future as AI gets more and more sophisticated. Alex Winter, who is a director,
actor, writer,
wrote a piece in Wired
where he raised a couple of objections to it
that I think are worth considering.
I'm curious for getting your thoughts on them.
Number one was that the studios will just lie
his concern about what they're actually training the AI
and what they're actually using the AI for.
You can't trust them.
You have to assume that they will cut corners
at every opportunity.
And number two,
and this is the one that I thought was actually really smart,
is that the studios need to acknowledge or need to consider something that they haven't,
which is that the AI companies themselves could actually be the real threat here,
much in the ways that studios did not take the threat of streamers seriously and that streamers could come in and actually displace their entire business.
You know, OpenAI, whatever AI company, they could at one point decide we're going to make
our own movie production studio, our own TV production studio, where we're not hampered
by disagreements with labor and we can do whatever we want.
And the studios and the actors and the writers need to understand they're all on the same
team and facing that threat.
I think that second point is a very good one because you could definitely see that happening, which is why I think, and of course, the actors are still on strike.
SAG is still on strike.
And that's going to be important because you could see one of these tech companies eventually having everything they need to create films and television except the actors.
Right.
Which they're getting closer on there yeah they're trying to do but if they can make sure that they don't get the actors likenesses without some at
least some negotiation then they can't do that so i think it's going to be important for the actors
to stand for i think the what the actors want on ai is going to be an even bigger deal than
on the writing side on the lying yeah so obviously don't trust the studios but what i've always and i've heard this from
some people in hollywood like a real worry is not necessarily right now that um ai is going to turn
out a great script but that studios can use ai to turn out a premise yeah for a television show
for an episode for a movie even and then the studio, for a movie even. And then the studio says, well, this is ours.
It comes from the studio.
And so therefore they don't have to pay
for that like sort of original,
the idea for the premise, right?
And I think under this agreement,
it depends on how you read it.
You know, it says AI can't generate any source material,
literary material without credit.
But what's to stop some executive sitting in a meeting being like,
hey, we have an idea.
Right.
Right.
Who knows where it's actually going to come from.
It actually comes from the computer.
And there's, you know, the kind of the thing to consider is that
this has always been an issue with just IP.
You know, there's always been this question of like,
well, a studio comes up with a script.
Did they kind of borrow that idea
from a book or from a novel or from a non-fiction book
and this is something that it just had to be
we've had to work out the norms over time basically through the courts
and now studios are pretty good about like they'll be safe
and they'll just buy out the rights for something before they make a script
they're very aggressive about buying IP rights for books
and articles.
But that had to happen by people suing
and just forcing them to be proactive about it.
So I think we're probably going to,
this is probably one step in a long negotiation
over these norms.
Some other related AI news,
even though I know very little Spanish,
just by taking it for five years,
you may soon be able to hear me, Max, and other podcast hosts speak that language and others fluently when you listen to our shows.
Spotify just rolled out.
Just to be clear, that's not an announcement.
No, no, no.
Spotify just rolled out a new AI-powered voice translation, which lets you listen to podcasts in other languages in the host's own
voice. So their initial experiment is only English to Spanish right now. They have a few of their
big name hosts that are associated with Spotify, Bill Simmons, Dax Shepard, an upcoming podcast,
I believe by Trevor Noah. No word yet on when they'll do other languages or other hosts.
Like I said, we haven't heard anything yet.
I'm assuming you're just going to pop down one day.
I'm going to hear Farsi coming in through the microphone.
What do you think about that?
So there are a few companies that are doing some version of immediate simultaneous translation
in the original voice of the speaker.
And you look at these videos and it's really amazing.
And I think this is kind of miraculous.
Like I know I've been kind of a skeptic of AI.
I've been kind of a curmudgeon.
Like I think this is really cool.
I think that it's important to like think a little critically
about what it can actually do and cannot do.
I spent a long time as a foreign reporter
trying to work across the
language barrier. And I think that this is going to be really transformative in some ways. The idea
that you can sit down and have a Zoom call with someone who doesn't speak your native language
and can just freely converse with them is amazing. I mean, technologically, it's incredible.
I mean, potentially world changing.
So that's kind of the question i have been
thinking a lot about this like what are the actual uses for it i think forget about and
we're not saying that uh let being able to listen to podcasts is world changing no our takes in
brazilian portuguese will will save the world but it's right there in the podcast name if you play
this out so that ai what is what is now has the power
to break down language barriers between people right instantaneously right that that becomes
a difference so the thing that i and i'm curious what you're kind of like imagining with this i
think the really revolutionary uses are going to be i think the biggest one is going to be movies
and tv and like this will be a big thing i am sure sure, with the SAG negotiations. But there's an entire world
of entertainment out there that is not in your native language, whether you're an English speaker
or speak another language. And like dubs and subtitles never quite cut it. Like you never
get the experience. You never get the full effect of the acting. And the idea that AI can now solve
for that. So you can watch a German TV show and you're hearing the original actor's voice and
seeing them say the lines in English. That's's amazing and i think that is going to open up a lot
of like art and culture and entertainment for a lot of people that it's previously it's been kind
of difficult to access um i think one of the big uses is going to be business meetings a lot of
international businesses where they're trying to talk across different languages it's going to be
a lot easier to have those conversations now and i think it will be governments and like i'm thinking
about the un thinking about like yeah like bilateral meetings that we've been part of on
foreign trips i'm thinking of like it's just uh it's it's very interesting well talk more about
it from uh the perspective of someone who's who's done journalism abroad so i've tried to do a lot
of interviews in person,
over the phone, over Zoom,
across the language barrier with a translator,
and it sucks.
It's terrible.
I mean, it's like you can do amazing things
talking to people,
but it's just like the barrier socially
and emotionally that gets introduced
when you're talking through a translator,
when you're talking through Google Translate,
like really makes it hard to connect with someone.
And the idea that I could now, as a reporter, do a Zoom interview
with someone where it will feel to both of us like we're speaking in each other's native languages,
even if the translation isn't perfect, I think will do really incredible things. The idea that
I could call up a dissident in Iran, and we could have a natural free-flowing conversation,
you're just going to get much better answers, You're going to get a much better sense of the story you were trying
to report. And I think that's journalism, but there are lots of applications to it.
At the same time, forms of this technology have existed for a long time, right? Like the Google
Translate app, you can hold it up to someone you were talking to on the street, and you both speak
into it, and it will speak the translation back back and forth and that has never been able to bridge the language divide because
it's just awkward it's just like if you've ever tried to use it it's just really hard to have a
conversation that way so in some ways the like the ai is not going to be able to solve that so like
your vacations to france it's still going to be awkward when you go to the cafe like you're still going to be reading out of a phrase book like the tower excuse me can we
actually zoom for a second so just talk in person yeah right right a little of that right yeah i
think it's easy to see those videos and be like the language barrier of overall we've toppled the
tower of babel and like as someone who has worked with more rudimentary versions of this like the
big barrier was never the speed and efficiency of the translation.
It was actually speaking through an app
or a website is really the big limitation,
which we haven't solved yet.
So we're not at universal translators,
but this is still really cool.
Yeah, my first reaction was excitement.
And then I'll throw out two things
that give me pause.
One, we were talking about this
in one of our Slack channels here at Crooked.
And you mentioned this is going to be part of future WGA negotiations.
People here brought up, okay, well, if there's probably, if we're translating podcasts, aren't there podcasts right now that are translated?
And isn't that taking human jobs for people who translate podcasts right now i think that's true to an extent that
there are currently podcasts where there are the hosts and then there are two other people
who are just translating max and john for a for a new uh audience right what a dream job yeah i was
gonna say uh poor poor people should get hazard pay for that um so to the extent that's happening
yes that has to.
But there's also a whole bunch of podcasts that would never be translated to other languages and no one would ever pay people to translate them.
Right.
And so there's a whole bunch of people in other countries who would get access to that.
And people also mentioned there that like what is lost culturally when you translate,
right?
Because translation, even if it's perfect,
sometimes you just lose the cultural meaning. So there's that. And then the other thing I thought about is we have talked a lot on this show about sort of the dangers of the whole world being
connected on social media. And like, maybe we aren't all meant to be connected on this large
scale. And suddenly, if we are now connecting the
whole globe and breaking down language barriers, like, what does that do for people who are trying
to cause some trouble? Yeah, that's true. And I like I can't think of anything that any risks
that are created by this, but I would have said the same thing about Facebook 10 years ago. And
it is there's a been a pattern of just like, open up all the links, connect everybody and then just
wait to see what happens. One of the big things that i worry about is spoofing um yeah not so much like high level
political disinformation because you know if you have a lot of money to spend on disinformation
you could always fake somebody's voice but how easy it will be now to get you know a recording
of someone on youtube and spoof their voice if you're trying to, you know,
get their credit card information
or try to get their passwords.
And the idea that you could be,
get a weird call from your buddy or a family member
and you only find out later it's a spammer in Moldova
trying to get you to, you know, read out your PIN code
is, you know, that's a little scary.
Love it says we all need safe words.
Okay. What's yours? I we all need safe words. Okay.
What's yours?
I have not picked it yet.
Okay.
I keep saying that every time we talk about AI voice thing.
And I think that's probably true.
That's terrifying.
Yeah.
All right.
Some more news this week about the government going after big tech monopolies.
This is from the Associated Press.
U.S. regulators in 17 states are suing Amazon over allegations the e-commerce behemoth abuses its position in the
marketplace to inflate prices on and off its platform overcharged sellers and stifle competition
one of the most significant legal challenges in the company's nearly 30 year history new york
times headline was a bit spicier lena khan versus jeff bezos this is big tech's real cage match
lena khan runs the federal Commission, which is bringing the lawsuit.
She's been an antitrust scholar and crusader for years and specifically argued that the dangers of monopolies aren't just about high prices for consumers, but about lack of competition.
Right.
What's your read on this one?
I think this is the big one.
I think this is the really big antitrust battle, like maybe of our time. I mean, they have a pretty slam dunk case. I think that Amazon uses its
complete domination of the marketplace as the big online seller where it's like 40% of all
online dollars or something or through Amazon to do. One thing that it might be like hard to
connect with is just like a regular
person has affect me but I think like to try to show the effects of it on society like they use
this position to squeeze retailers if you sell something you have to sell it through Amazon and
that means you have to sell it on Amazon's term so Amazon can just tell you we're taking 35% it
used to be 19% now we're taking a third And you have to lower your prices because we want your price to be lower. And you have to use our distributors and do all these things where it's now basically impossible for a retailer to make much money at all because Amazon is capturing all of that money, not because they earned it through the value they provided, but just because they are exploiting their control. Where else are you going to sell your products? Where else are you going to sell your products? Right. And the thing that I think makes it really
dangerous for society, but that is also the big target for Lena Kahn and the FTC is they are using
their control of the online seller marketplace to unfairly dominate other markets. Like Amazon also
makes a lot of products, right? They make, you know, toilet paper. And the fact that they control
basically the prices and the marketplace because they can dictate it means that they can set their toilet paper at the lowest price.
They can push their toilet paper in front of more consumers. And that means that they can
make the quality of toilet... It's a weird example to pick. They can make the overall
quality of toilet paper worse because what determines the toilet paper that dominates
the market is no longer the best
price. The best product is whatever Amazon wants to be in front of consumers. We're going to get
some scratchy toilet paper. Well, to use an example that's like close to my heart books.
Yeah. So like, just to show that I'm not like knee jerk anti-tech, I actually think that Amazon
initially was good for the book market.
Like any bookseller, no matter how much you love your local bookshop, only stocks a tiny percent of any of the books printed at any given moment. So that means you can't access most books.
If you write a book, it means unless it's a mega bestseller, you can only reach certain consumers,
the bookstores that are able to stock your book, and it's only there for a limited amount of time. With Amazon, consumer can access any book pretty much ever written for as long as they want.
If you're a bookseller, it means you can reach consumers for as long as you want, if you're a book writer rather.
So that's really good for everybody.
But where it becomes unfair is now Amazon says, we are going to make an e-reader.
We're going to make a Kindle.
And I have a Kindle.
I love it.
It's a great piece of equipment. But what they use is they use their dominance of the bookseller marketplace to go to publishers
and to say, normally when you print a physical book, you negotiate the price with booksellers
and you kind of meet at this equilibrium where you share the profits.
It works effectively for everyone.
For e-readers, we're going to set the price.
We're going to tell you that it's half the price of a book, and we are going to take a
much, much larger share of the profits from the sale of any book for us because we control the
marketplace so we can set the price for everyone. Books publishers have no choice but to agree to
these really stilted terms. And what that means is if you write a book, more and more in your
book sales now go to
e-reader sales because Amazon can artificially lower the price of an e-reader product, whereas
they can't with a book. And you take a much smaller share of that. So even if more books
are being sold, the publishers and the authors get much less money for it, which means it's much
harder to make a book commercially viable because Amazon is exploiting its control of the marketplace,
take a larger share. So there are fewer books in the world and it's bad for everybody. There's less knowledge
being produced. There's fewer novels. So I think that's a longer path to get there for the average
person thinking about this, right? Because I think what Amazon has been thinking and their
whole theory for a very long time is, well, we're going to sell at the lowest prices possible.
So we're going to please the consumer and we're going to deliver faster the lowest prices possible. So we're going to please the consumer
and we're going to deliver faster than anyone else.
And so from a consumer standpoint,
you want cheap stuff,
you want any book that you want,
you want choice, that's great.
And their argument, of course,
is how could this be monopolistic
because the consumer is getting unlimited choice
at great prices, super fast delivery.
And I think what Lena Kahn has been arguing over these years is like, no, no, no.
The lack of competition in the market actually does hurt consumers in the end for the reasons that you and for reasons that are bigger than just prices.
Right. And this is what we talked about with Google, too, where, I mean, Google, like Amazon, initially dominated because they had a great product and
they delivered it really well, but they reach a certain point where they have effective monopoly
control. And this is just like textbook. Every company does this, where once they have an
effective monopoly, the entire orientation of the business shifts from how can we make the best
product so we can win over consumers to how do we leverage our control of the marketplace to extract more value while delivering fewer services.
What do you think could happen here?
Would they break up Amazon?
So Lena Kahn has been, she's been cagey on whether they would ask for Amazon to be broken
up.
That does seem like a pretty clear remedy here.
The fact that Amazon both controls the marketplace and also makes all these products is just an incredible conflict of interest in terms of serving consumers. Maybe they'd spin
off the product part from the marketplace. Yeah, exactly. Right. Or the e-reader becomes
a different company. But they have also said that they are going to ask for injections to
stop some of these anti-competitive behaviors like ratcheting up the share of the profits that
they take from retailers,
which has almost doubled in the last few years.
Well, that should be an interesting one to watch.
Finally, Linda Iaccarino, the CEO of the company formerly known as Twitter,
gave a truly wild, cringeworthy interview at the Code Conference this week.
So she had been booked a long time ago to sit down with CNBC's Julia Boorstin.
Like her first big interview, right? Yeah right first big interview um but she found out
on the day of her interview that our old pal cara swisher had booked a special guest
to speak an hour before her the old swisherino
y'all roth twitter's former head of trust and safety who told the crowd how he received
death threats and had to sell his house after Elon Musk publicly accused him of sexualizing children.
Publicly and falsely, we should say.
Falsely, yeah.
After he left the company because Yul spoke out against, you know, criticized Elon.
And so he said, oh, you're an advocate for sexualizing children.
That's how that went.
Which he just continues to play that card.
Never really works out for him.
Never works out for him never works out for him so this made things a bit awkward for uh yakarino when she
walked out on stage and things only got worse from there uh let's listen to a clip elon musk
announced you're moving to an entirely subscription-based service yeah nothing free on
about using x did he say we were moving to it specifically or is thinking about it? He said that's the plan.
Yeah.
So did he consult you before he announced that?
We talk about everything.
Who wouldn't want Elon Musk sitting by their side running product?
I see a show of hands.
There may be a few show of hands to get the cute chuckles you're getting,
but I would say the percentages in this room are about 99% who would say no to that
and 1% of maybe personal opinion.
Oh, my God. god the secondhand embarrassment i feel so the context for that last
clip which makes it so much worse yeah is that she was being asked like a polite roundabout way
of saying like are you just a figurehead ceo was like isn't it weird that elon musk continues to
run product at your company yeah not you the ceo all the product teams report directly to elon right and so julie was saying aren't you more of a coo or she said a ceo in
name only and to which um uh linda said uh that's not nice you know what it's not but like
he's the one who did it right so that was awkward how do you here's the thing folks uh you don't have to agree to an
interview first of all if you're not gonna be prepared for an interview you don't have to go
yeah you don't have to book it she booked it she chose to go to the code conference and get and and
do this interview and there's you know there's some complaints by like elon and the elon fanboys
and some other idiots on x twitter whatever uh who, who were like, oh, you know,
Kara sandbagged her by booking Yul last minute
and blah, blah, blah.
And it's like, first of all,
most of the problems in that interview
did not come from her having to respond
to what Yul said an hour before that.
Most of them came because she didn't know basic,
like, how do you not know?
How do you not know that Elon told BB Netanyahu,
which is where you always want to roll out your new product uh your new product moves to bb um that uh twitter was going to move
to subscription the questions asked in this interview were the most obvious foreseeable
questions she possibly could have and every time it was like she had never considered the question in her life, which is like she got asked about the like ADL suing Twitter, like the Elon Musk anti-Semitism thing.
And Yaccarino's answer was everyone deserves to speak their opinion.
And then she looked at her watch and said she had to go.
What an incredible.
Anti-Semitism.
Whoops. It's getting pretty late.
I'm going to pull that next time you ask me a question on a pod.
I don't know the answer to it.
I'm going to say, well, I have to leave, unfortunately.
And it just like...
Yak attack.
The fact that she had not even...
Yakity yak.
Don't talk at all.
It really gives you...
Wow.
It really gives you pause.
It seems like not only is she just a figurehead
which i think we all knew but like it seems like she's like not staffed like if she had any staff
they would be like here are the questions you're gonna get here are some bullshit answers to give
it's fine and she was the most sympathetic audience in the world and like couldn't hold
on to them and it just like and i think she hasn't thought of these questions in her own head
that's the thing that blows my mind.
If like you're a figurehead CEO, like whatever.
We all take paycheck jobs occasionally.
Like I get it.
But you would think for your own like ability to look in the mirror in the morning, you would have some answer for yourself about like why this is okay or what your role is.
But it was like no one had asked her that, including herself.
Feels like she hasn't really thought through that life choice might want to mulligan on that life yeah uh also it's just
like even if she was well prepared it is quite difficult to defend everything elon musk has done
over the last however many months that he has been in control of all in pod does it every week
and i tip my hat to that.
I tip my hat to that.
She had listened to one episode of the All In Podcast.
She would have been so well prepared for it.
She's clearly not.
I mean, like, I see her tweeting once in a while,
but I don't think she's an avid user.
At least she doesn't know what's going on on the platform.
And someone noticed, not even on the home screen on her phone.
She held up the phone.
Twitter's not on it. No, there was no Twitter on the home screen on her phone. She held up the phone. Twitter's not on it.
There was no Twitter on
the home screen that we could see.
And settings in the dock, which is iconic.
What? Settings in the dock?
That's a boomer behavior.
What are you doing?
I think this is actually
significant beyond just being
like Linda Iaccarino.
I'm so sorry, I'm not sure what you mean like
clearly a figurehead clearly like not plugged in at all to the tisans of the company seeing the
crowd which is the like Silicon Valley like elite laughing at her openly I think really tells you
something about where people see not just her but Twitter and X and the Silicon Valley ecosystem
even Silicon Valley is like this company is a train wreck garbage fire.
That's really bad.
Yeah.
And also her performance on this really matters more than just PR, but because she has to give the same spiel this coming week to Twitter's creditors.
Yeah.
Twitter owes $13 billion. to New York in a couple of days to meet with the bankers that have made these loans who are panicked and apoplectic to try to convince them that she can steer the ship, that she's got the
company under control. Elon Musk very pointedly is not coming with her. And if she turns in this
kind of performance, it's going to start to have real consequences for the company.
You don't think that the lenders will be persuaded when she tells them that more people watched Tucker Carlson's interview of Donald Trump than exist in the world?
And then humans that have ever or will ever exist.
You don't think they're going to buy that?
One of the bankers, of course, anonymously told the Financial Times she has to get him out.
They need the dollars to come back.
Their hair is on fire.
They didn't want to.
We know we've talked about this before.
Twitter's creditors did not want to hold on to these loans at all.
They wanted to make the loans and then they wanted to sell it to other investors.
But they can't because they cannot even find buyers for these loans at 60 cents on the dollar.
That is how little people think of Twitter's ability to pay back debt that is worth only a quarter of the company when Elon Musk bought it. And so I
think when they see that like revenue is down 60% by Musk's own admissions. And when they see Linda
Iaccarino come in and she'd be like, I don't even know what the plan is for subscriptions. I don't
even know what's happening at my own company where I'm CEO. I think they're going to panic.
Yeah. At one point, Julie was like, well, so, but you, you came from the world of advertising you know that and so
don't you find it a little odd that you would stop trying to sell advertising for Twitter and
just go to subscription and she's like I was brought in to run this company not to sell
advertising it's like so are you going to subscription anyway back to anti-semitism
no Elon and I talk about everything do you think they're going to go to subscription anyway back to anti-semitism no i elon and i talk about everything do you think
they're going to go to subscription we never we haven't talked about this on the show what a great
question i think i don't know they floated it a lot i know i know every new development we say
is going to like kill twitter but i think you make everyone pay that i don't i mean when you start to
throw up the paywall people are just not gonna
they're not going to continue to log on i mean it's it's like the same problem with you have
enough outages you make it hard enough to access the service people are going to stop using it
i have to imagine that for that reason cooler heads are going to prevail also if they're going
to have a subscription model they're going to have to build it using who using what engineers
yeah not linda yagorino Using who? Using what engineers? Yeah, not Linda Iaccarino.
You're not excited to be coding next to Linda?
Show of hands, show of hands.
Okay, so after the break,
my conversation with Brian Stelter,
of course, who's formerly of CNN.
Now he's a host of Inside the Hive podcast at Vanity Fair.
He's got a new book out
that's coming out November 14th. It's called Network of Inside the Hive podcast at Vanity Fair. He's got a new book out that's coming out November 14th.
It's called Network of Lies, the Epic Saga of Fox News, Donald Trump and the Battle for American Democracy.
We had a great conversation.
We talked about all the succession drama at Fox now that Rupert Murdoch has stepped down as chairman.
Really big deal.
What did you think when you heard that news?
I honestly, I first had questions where I think that like so much of how, and this is why I'm really excited for Brian's interview.
So much of what this means for Fox News and therefore American democracy depends on the inner mechanics of a like set of like 10 or 20 personalities within Fox News.
Yeah.
And that is something that is, it's like really opaque.
And so that was why I was really excited to hear from people like Brian specifically,
who has been so smart on cable news for so long.
Yeah.
I'm like, kind of help me understand where does this going to take us?
Because it could, it could go a lot of different directions, I think.
And I will say like Michael Wolff also has a book out about this.
Michael Wolff says a lot of things.
Right.
And that's why. So it's like Michael Wolff's out there doing like the, you know,
the succession fantasy version of this. But Brian, as he tells me, he's done like a lot of reporting.
He's like gone to Fox. He's talked to people. Everything is like very well sourced. So I'm
very excited for Brian's book. And we had a great conversation about Fox. And then we also had
a good conversation just about the future of cable and network television and journalism. And, you know,
how do you, how do all the different ways that we consume information now sort of bear on the
larger democratic project, small d democratic project?
What are the languages you think Fox News is going to use the Spotify app to translate itself to?
You think Arabic language Fox News is going to be big?
You think that's going to be big, yeah.
They're already translating Tucker into Russian.
So there's an audience there.
Oh my God.
It's your big market, Fox.
It's brutal.
Anyway, fantastic conversation with Brian, which will be up right after the break. Brian Stelter, welcome to Offline. Thank you. I think I'm not sure what
to expect. Well, I know you have a very timely book coming out soon about Fox News. So I wanted to talk to you all about Rupert Murdoch stepping down as chairman and the
future of the network.
But first, how much rewriting have you had to do since the news broke?
Well, that's a very sensitive question because earlier today I was going over the PDF, making
sure that the new paragraphs about Rupert were in the right place, were
formatted the right way.
And now I'm just hoping that nothing else happens to him between now and November.
Oh, yeah, that's right.
Well, you know, he's 93.
I just want a totally normal, calm fall.
But look, he did me a solid.
You know, he announced his quote unquote, well, he didn't call it this.
His aides called it a semi-retirement
and he announced it right on the last week that I was allowed to make changes to my book.
And it's all going to take effect in mid-November when the book comes out. So
I'd like to think Rupert did it for me, but I'm not quite that naive.
Oh, so it sounds like, yeah. So it sounds like the timing is pretty okay then.
So my first reaction to the news was that it wasn't a big deal because Lachlan,
who's taken over for his father, is like even more conservative in terms of the future of Fox.
And it seems to be true for the time being, but I hadn't realized that when Rupert dies,
Lachlan and his three siblings, who aren't that conservative, each get a vote on the question of
what happens to Fox next. So what are the different possibilities
of what might happen at that point?
And which do you think is most likely?
Right, well, I do see short-term
and long-term implications.
Short-term, you could make the case
that this is a good thing for Donald Trump
because Rupert Murdoch,
for all of his warts and flaws
of which we could spend an entire episode talking about,
he was internally a sharp Trump critic.
You know, internally, he was the one saying, we're going to make Trump a non-person after
January 6th. So to the extent that he is diminished, removed, less powerful, less influential,
you know, that could bode well for Trump at Fox in the short term. In the long term,
anything could happen. You're right. Anything could happen. And it is very much up in the air because we don't really know where all the siblings
stand.
We know that Lachlan is the chosen son.
We know that Rupert wants him to be in charge long into the future.
My view about Rupert's announcement was that it was mostly a signal to the siblings.
It was mostly a signal to the siblings and to the marketplace that Rupert has made his
choice no matter what.
And as a source said to me,
and I added this to the book just a couple of days ago, a source said to me, I'm going to
paraphrase, but it was something to the effect of now the siblings would have to expressly
overrule their father's wishes, right? The father has made the wishes very clear.
And if they make a change, they are explicitly overruling him, which could very
well happen, right? Because as you alluded to, James Murdoch wants nothing to do with the current
version of Fox News. He's disgusted by the current version of Fox News. He very much wants change and
has plans for change. But what his two sisters do, his sister Elizabeth and his half-sister Prudence,
that's very much up in the air. Those are the X factors. And, uh, if I were sitting here having to, to guess what could happen, you know, I think I
would probably lean toward a sale, you know, some sort of spinoff, some sort of asset sale,
divestiture, as opposed to some dramatic, uh, takeover. But now that I've said that on the
podcast, now I regret it because I'm going to be wrong. And so I'm hoping that this audio is forgotten because it is just so uncertain.
It's when I talk to sources in this world, they make so clear no one has any idea how it'll play out.
What do we know about Liz and Prudence and their politics and where they stand?
Like how much how much reporting have you done on that?
How much is known?
A little bit is known.
And the following, you know, comes from public appearances and non-public appearances.
You know, Prudence is not very visible at all.
I would say she's mostly invisible.
She's not involved in the companies.
And she likes it that way.
She's a very anonymous figure.
Liz is a little bit more visible.
There was a moment during the Super Bowl on Fox where Rupert and Elon Musk and Elizabeth
Murdoch were all in the same box.
And that got tongues wagging in certain Murdoch world circles. Liz is the one who seems to be a
bridge between James and Laughlin. James and Laughlin don't speak directly. They have not
spoken directly in years, which is really sad on one level and really wild on another. But Liz is
the bridge between them. And maybe that makes it harder to know exactly where her politics are on this matter.
I also think there's a difference between personal politics and interest in profits,
interest in the cash money that flows off of this company. The cold hard bottom line is that
all of these kids have lots and lots and lots of Fox stock, and they're going to want a positive
outcome for those shares, whether that means, you know, yanking Fox News back closer toward reality or whether it means selling off Fox News to some billionaire or some sovereign wealth fund.
They're going to want a positive outcome.
Well, let's play resistance fantasy politics for a second, because I did hear some reporting that like James has this vision where he wants to get the sisters on his
side and then uh when rupert dies you know the him and the two sisters because then outvote
lachlan take over the company and he wants to then like make fox a force for good or de-radicalize
it like in that scenario like how does that even work does he fire all the talent and start fresh
like don't the ratings
just crater at that point? What happens to the audience? I don't know how that's even a possibility.
This is exactly the question that I have asked repeatedly. And here's the best answer I've heard.
The best answer I've heard is, James does not want... Well, okay, the answer always starts with,
there is no plan because Rupert Murdoch is alive and James is busy with all well, okay. The answer always starts with, there is no plan because
Rupert Murdoch is alive and James is busy with all of his companies. Okay. So the answer always
starts that way. He's on the board of Tesla. He has all these investments in streaming and et
cetera. But then you go a little further. The answer is this. James is not trying to turn Fox
News into, I don't want to say MSNBC because i hate that false equivalency between fox and msnbc
it's total bullshit but he's not trying to turn fox news into a center left network he's not trying
to do that he would try to turn it into a center right reality based network right and uh what
would that mean well it probably would not mean sean hannity at 9 p.m after a couple of years
but it could very well mean a lot of the talent,
a lot of the producers,
a lot of the shows remain in place,
but they are held to some... Gosh, I don't want you to make fun
when I say this.
They're held to some sorts
of journalistic standards.
They're held to some sort of norm.
Like somebody is doing
some fact-checking sometimes.
Which in the current version of fox it sounds
crazy i know right well it sounds like and and also with with his politics and if it's center
right it's more like uh instead of covering uh the latest caravan from from mexico they're covering
uh tax cuts and and perhaps in a favorable right yeah well and that's the thing right so so james
and his wife katherine they had a fundraiser for biden last fall on the upper east side and their mansion on the upper east side
and you know on one level that is so revealing about the murdoch family that one guy is holding
fundraisers for biden the others are trying to destroy biden with the network fox news
but on another level somebody said to me look it's not that james is this strident democrat
it's that he's a moderate
who wants to defend democracy. And if you're going to defend democracy, you're going to hold a
fundraiser for Biden in 2022, right? This gets to what we see all the time across political news
bubbles about Republicans and moderates and folks who would not normally identify as Democrats
trying to come to the defense of the system. And so I think that's what we would see from James,
a pro-institutionalist, a pro-system, a pro-democracy version of Fox News.
Yeah. So until that episode of Succession happens, in the present reality, we've got
Lachlan in charge of a Fox that has just settled one massive defamation suit, is facing more,
lost its most popular primetime host and has competitors like
you know Newsmax and countless other right-wing media outlets nipping at its heels what what's
the plan to right the ship is there one I don't think Lachlan thinks the ship is sinking do you
okay yeah that's a good that's I can't it certainly doesn't look like it from the outside
but I don't know what the sort of post-domominion internal sort of wrangling has been, if at all.
There are definitely some unknowns, and one is about what happens to all the other lawsuits.
Dominion was settled, but Smartmatic is next.
Smartmatic is very much a live issue.
I mean, depositions are supposed to be getting underway.
Smartmatic is not going to be willing to settle until they get what one lawyer called a second bite at the apple, meaning they get to go and read all the Dominion
depositions. They get to read all the Dominion discovery, and then they get to go and try to
find even more. They get to go and try to get even more. So you can imagine a scenario where
some of Rupert Murdoch's or some of Lachlan Murdoch's emails did not get handed over to
Dominion, but would get handed over to Smartmatic. So who knows what Smartmatic is going to find?
The point is Smartmatic is not going to want to settle until it finds everything. They're going
to want maximum leverage. So that's a huge unknown. It's a huge wild card. There are also
shareholder lawsuits. And there's this new primetime schedule without Tucker Carlson
that's not quite as popular as the one they used to have. I would argue that the ratings are coming back. The viewers are coming back. The
Tucker Carlson fans, at least some of them, have migrated back to Fox, but it's still an unknown.
I think, though, when I say Lachlan doesn't think the ship is sinking, what I mean by that is that
Fox News remains his profit engine. It remains the way that he brings in cash to then go make investments in
streaming like Tubi or make other investments for Fox Corporation. So I think he looks at Fox News
and says, by firing Tucker, he sent a very loud message. And we can debate what that message was.
And I bet you would say, what is that message? I don't want to play Lachlan Murdoch here,
but let me just, I'll go along with it for a second.
Part of the schtick.
He might say that he made Fox News 10% less crazy.
He might say he made, well, he wouldn't say that because he-
He wouldn't acknowledge it was crazy in the first place.
Yeah, and he defended Patriot Purge.
I mean, he did internally.
He was able to defend it.
So I don't want to say that. But I think I think Tucker's firing might be viewed down the line as Lachlan Murdoch
sending a message to the rest of the staff, to the rest of the team, that no one's bigger
than Fox, that no one can abuse the system the way Tucker did, that there is a limit
to some of the conspiracy theories.
I know it's hard to believe, but there is a limit to some of the conspiracy theories. I know it's hard to believe, but there is a limit to some of the conspiracy theory rising.
You remember last spring when Tucker got a hold of the Capitol Hill tapes, some of the, you know, deleted scenes from the riot and pretended like they showed a peaceful protest.
So none of the other Fox shows ran with that story.
None of the other Fox shows followed up on Tucker's so-called scoop.
I think that was an early sign that Tucker was too far fringe,
even for Fox.
When you look at what Jesse waters does now in Tucker Carlson's old time
slot,
a lot of it is repulsive in my view,
but it is not quite as far into the fringe land as far into the wilderness
as Tucker was.
I think,
you know what I mean,
John?
I mean,
Tucker was not Tucker in 2023 was not the character that he was. I think you know what I mean, John. I mean, Tucker was not,
Tucker in 2023 was not the character that he was in 2017.
Right.
He became unglued.
And I do think Lachlan was sending a message
to the rest of the staff,
to the marketplace, the public,
that there are limits even on Fox
and that I suppose as a business calculation,
just as a crass business calculation,
it's better to appeal slightly more to the to the independents, to the so-called moderates that tolerate Sean Hannity than it is to appeal to the Tucker Carlson fringe.
Yeah.
Am I making any sense?
Because I don't even know if I believe it, but I think that's what Lachlan believes. Well, so the way I think about it, which is it's pretty much the same, but a little slight difference is I've always thought that Hannity Hannity is just like a Trump guy.
Right. He's like a Trump hack.
He'll go out there.
He'll say whatever Trump needs him to say, whatever the White House wants him to say.
Like he's he's the Trump guy.
Yeah.
Tucker was more invested in Trumpism. And I think I've always thought Tucker was a little more dangerous in that regard because he has just sort of like the company guy, spouting the company line when it comes to Trump.
I think Tucker has his own agenda that is independent of Trump, even though it is sometimes
aligned with Trump.
And I think that's been borne out by Tucker's behavior since he was fired.
And I've had people at Fox say to me, go look at what he's posting on X.
That's exactly why we don't want to be in business with him.
And the best slash worst example was his interview with that Barack Obama accuser.
There was a suggestion that he was trying to get away with stuff at Fox that he couldn't
get away with.
And so now he's doing it on his own off in the, I don't want to call it a swamp, the
quicksand of X.
And so I don't say that in order to defend
fox but i i say that in order to understand their business rationale that it made more sense to lose
some ratings in the short term to take a publicity hit to create a controversy to create a you know
what happened when tucker was fired there's this whole conspiracy there that's all these conspiracy
theories now about why was he really fired it has set set, you know, the far right on fire. And you can go and read 10 different theories about
what really happened. And they're all bullshit. But, you know, I think Fox decided to take that
risk in order to pull the channel just slightly back toward the, again, still hard right,
but reality-based world. Maybe. So obviously, Rupert was well reported that he was he was done with Donald
Trump. He initially tried to make DeSantis happen. You could argue, kind of see there was a little Nikki Haley boomlet on Fox since the first debate.
Now that Trump is 40 points ahead of everyone else and Loughlin's in charge,
do you see any indications that Fox won't be 100% Trump?
Is the family or people at Fox still trying to push other alternatives to Trump,
or are they just throwing up their hands at this point?
The way I see it, Trump leads and Fox follows.
And sometimes they resist that.
They try to fight it.
They try to pull away, you know.
But at the end of the day, they always come back together.
So I think that's what's been happening lately.
Certainly after January 6th, Fox made a very significant effort to pull away.
They said, we're not going to interview Trump live anymore.
We're not going to interview him on the phone anymore.
And that was partly because of the Dominion fallout and the desire not to be sued by other
possible victims of defamation.
But there were clear changes made to the approach toward Trump.
Now, however, now that the polls show what the polls show, Fox is following the base.
And that includes Rupert Murdoch, who I'm told, according to sources, has resigned himself to the likelihood of a Trump nomination by the GOP.
Now, you know, we have seen the reporting that he's encouraging Glenn Youngkin and others to get into the race to challenge Trump.
You know, I'll believe it when I see it.
And even if I see it, I'm not sure I'll believe it.
I mean, well, it's also it's I mean, it's obviously a ratings play as well, because, you know, there's the second debate this week.
First of all, it was like relegated to Fox Business, which I found was interesting.
I saw a report that the ad prices for that debate were like cut in half. And none of those Republican candidates make for really good television,
you know? And so I'm sure I'm just sure that at Fox, they're probably thinking like, yeah,
you know, if maybe maybe there's people at the top of Fox that don't want Trump as the nominee,
but like, what else are they going to do? They've got to make TV and make money. At least that's
Fox view, probably. Well, I'm of two minds on this because, yes, Fox absolutely wanted Trump at both debates.
I mean, look, Suzanne Scott and Jay Wallace drove out to Bedminster and begged Trump to show up.
For the second debate, they were not so publicly
eager. But I think clearly Fox wants Trump at the debates. That said, I think it's interesting how
highly rated the debates have been without Trump. And tell me if this is foolish, but the first
debate, you know, 13 plus million viewers. The second debate, the ratings came in on Thursday.
It was basically 9.5 million viewers across Fox Business and Fox News and Univision. So look,
they're taking several networks, they're smashing them together. But still, let me try out an idea here. Almost 10 million people
still wanted to watch the vice presidential debate. And I kind of, I find a little bit of,
not solace, I find that to be a little bit hardening. It makes me hope that there are a
good number of Republican voters and independents and Democrats who are curious about the other candidates, even though they probably don't stand a chance. I mean,
couldn't the ratings perhaps suggest to us that there is an appetite to move past Trump in the
GOP and people are actually, well, I don't know. I sound crazy when I say it,
but we see it in polls. We see, we see in polls that at least there are four in 10 Republicans that say that Trump's not
their first choice.
They're open.
That they're open.
That they're open.
And I think I heard this when I was in Iowa a couple of weeks ago talking with voters
and I was talking with reporters there at Pointer Institute.
And what I heard over and over again was there are Republican voters who really adore and
admire Donald Trump, but they know they need a backup.
They need a second choice.
They're afraid or they're concerned that he'll end up in prison and they want to have a backup.
And that might explain the ratings, the high ratings for the Fox debates, but it is a really
interesting and frankly, unusual phenomenon, like to feel like you have to have a backup choice.
Yeah. I mean, look, people slow down to see a car crash, too. But I mean, it is. I would not have guessed that it would still get nine million. Again, it's you know, they are smashing together a couple networks. But that still is that's a sizable. It's not a lot. It's like if you're Mike Pence, if you're Ron DeSantis, it's not nothing. It means that you at least had a chance in front of a decent number. Now, the question, of course, is, will each debate just have fewer and fewer viewers? You know,
the next debate's in November. It's probably going to be on the NBC networks. Is this just
going to be a situation of diminishing returns? And I think at the end of the day, you know,
questions about Fox and Trump, Fox will go home to Trump. Trump will go home to Fox.
There are times where Trump tries to go on other networks. You know, he does interviews on Newsmax. He goes on random far right blogs and podcasts you've never heard
of. He is never accumulating nine point five million viewers. He's never accumulating 13
million viewers. He's never reaching as many people in a single shot as he can through Fox.
So as much as he rants and raves and moans about Rupert Murdoch and Lachlan and all the rest, he knows, he knows where his base is.
And that's going to create one heck of a clash, I think, in 2024.
So I've always thought that Fox has played a huge role in radicalizing their audience.
I still do. the texts, emails, testimony made it pretty clear that Fox's content and editorial decisions
have been based almost entirely on what they think their viewers want to hear because they're
terrified of losing them to competitors.
So I've wondered who's radicalizing who?
Like, I'm wondering in which direction sort of the like, is it the viewers that are dictating what fox puts on the air or how much
influence does fox have in deciding that they want to move the base in a certain direction
i definitely think it goes both ways but after reading all the dominion depositions and all the
text messages and emails and i've got like this two gigabyte file on my computer that i used
to write network of lies network oflies.com pre-order.
When I went through this for the book, because I wanted to create like a reconstruction of every day in November 2020 and what everybody inside Fox was saying that month.
I came away believing the audience is more in charge than the producers, meaning the audience, you know, through the ratings every night has more sway than the producers or the
hosts. But it definitely goes both ways. For example, mid-November 2020, you know, when the
Fox audience is upset about Trump losing, in denial about Trump losing, and really upset with
Fox for saying that Arizona was going to go to Biden when it did go to Biden. But how dare Fox
say that? There was, you know,
the internal reaction against the decision desk, against the scientists who made the decision
was so intense. And the producers and hosts were looking at the Nielsen ratings for guidance.
And there was this moment where one of Sean Hannity's producers says to him,
our best minutes from last week were on the voting irregularities. And what he meant by that
were the minute by minute ratings. That is the Nielsen version of fentanyl. I never saw minute
by minute ratings at CNN for my show, Reliable Services. I didn't know those existed. Wow.
They do exist. They are minute by minute. They look like a line graph up and down every minute
based on the guest, the banner, the topic, the commercial break,
and some of the behavior is predictable, right? Like when you go to commercial, there's always a
dip. But when you put on Trump aligned lawyer, Sidney Powell, you're going to get a spike.
When you put on, I don't know, Pete Buttigieg, you're going to get a decline. You're going to
get a big drop. So what this producer was saying was not just, hey, I know what guests are most popular.
He was saying, talking about fraud is the most popular thing. Like what our viewers really,
really, really want to hear right now, what they need to hear is about voting irregularities.
And I thought that was so frightening because I've heard about minute by minute ratings used
at the Today Show or GMA to figure out, you know, what celebrity to put at
the 8 a.m. hour. But to hear producers using those ratings to say, we need to lie more, like,
we need to lie more loudly. That's another level of crazy. And that's not the only example,
but that's one that popped up when I went through these filings. I think it shows that the audience
is more in charge than any other force, you know, because the host can believe whatever the host believe.
The executives at Fox certainly did not believe the big lie. It's very clear that by mid-November,
they had moved on. And Rupert said that under oath as well, he had moved on. But the ratings,
the audience was basically dictating what was happening. And that, you know, makes you realize that the fever swamps and the internet of whether
it's right wing, you know, outlets or blogs or fucking comment sections or wherever it
may be.
Yeah.
These are really, they can have a huge effect on not just the Republican base, but then the loudest and
biggest megaphone for Republican conservative politics, which remains Fox News.
Look, the best example of that is from the weekend that Biden was projected to be president-elect.
And this example is still relevant today because it could very well happen in 2024.
Maria Bartiromo is heartbroken because
her president has lost the election. Fox's decision desk has said Biden's the winner.
Bartiromo's on the next morning, Sunday morning, and she needs to give her viewers hope. False
hope, of course, but hope. So she latches onto this email from some random viewer who admits she's a wackadoodle.
This email full of crazy ideas.
This email that says that Dominion, this company Dominion, with these crazy links to Democratic politicians, is somehow responsible for flipping votes.
And Bartiromo goes in the air with Sidney Pelt, and she basically reads part of the email verbatim.
Even though she admitted later she never fact-checked it. She didn't call the person and ask about it. She didn't like Google about it. She
didn't do anything. She just read this, you know, viewers fan letter out loud on live television,
hoping it's true. And that was the first mention of dominion on Fox. It was before Donald Trump
mentioned dominion. So all of the drama, all the defamation lawsuits, all of the settlement stuff, you know, that it was actually just
like one desperate fan emailing one desperate TV host. I found that to be really sick.
I mean, and my description of Donald Trump has always been like a Fox's biggest fan that became
president of the United States, right? So it's like, and then Donald Trump sees something on Fox
that Maria Barbaromo says, and then he says says it and then he ends up radicalizing more people because Donald Trump said it.
So it really is what happened. Yeah, that's that's the cycle.
Within five days, Trump was tweeting the word dominion. And that is exactly how it happened.
He saw it actually on Sean Hannity's show because Hannity copied Bartiromo.
And it is such a sad and And by the way, I think
it's self-defeating. I don't know what you think, John. I think this ultimately hurts Trump. It
hurts the audience. It hurts the GOP. They may not realize it. They may be too addicted to the Fox,
you know, message machine to realize it. But when you're told in 2022, there's going to be a red
tsunami every day and then there's not. I actually think this messaging, this propaganda
hurts the party. Look, I wish that that was the case. And I do think it hurts him to an extent
in a general election, right? His approval rating and his favorability rating is still terrible.
Look, I think about this from a political angle and an electoral angle, and it's like
the country's very polarized. And it's like the country is very polarized
and Joe Biden won the last election by 40,000 votes across three states. And so if Trump has
the Republican nomination and he has a rabid base who maybe don't vote in midterms, but they come
out to vote when Donald Trump is on the ballot, then getting them all whipped up and excited,
that benefits him and
it benefits him in a high turnout, close election. I think long-term, it certainly has not been good
for the GOP. They've now lost a series of elections, but all it takes, when the party
is that radicalized as the Republican Party is now, all it takes is winning one.
And the flip side of this is that Fox and Newsmax and all of these right-wing media outlets,
they also guide Trump and guide the candidates into what the audience cares about most,
into what the base wants to hear most. Do you remember that rally that Trump had in North
Carolina a couple of months ago where he mentioned, quote, transgender insanity?
Yeah.
What happened was people got up and started cheering And he says, I can't believe this. I talk about taxes and y'all just yawn, but I talk about
transgender and everyone goes crazy. It was almost as if what Fox had been feeding the audience about
transgender issues was coming back to Trump and Trump kind of taken aback by it, but learning
from it. You sometimes see him at rallies learning from what the base wants well and that's also he's he's learning he's learning about what the base wants but i also
think that was a signal in the general that he's thinking to himself you know i know the base gets
excited about this this trans stuff but i don't when i get to the general i think this is where
this is why he is trying to do what he's doing on abortion too. Like I think, and you can see it. I saw him in that,
in the interview with Tucker after the first debate.
So you were the one person that watched.
It's even worse,
Brian.
I was,
I was on vacation and I decided to watch the debate anyway.
And then afterwards,
my wife,
Emily's like,
you know what?
I know you want to watch the Trump Tucker interview.
Let's just put the laptop in bed and we can watch it there.
So that's,
that's what I did.
It was really bad.
Did Emily watch it too?
She did too, although she fell asleep halfway through, thank God.
I'm not allowed to watch that stuff at home anymore.
No, she wants to do it every once in a while.
You have a really wonderful wife.
That's so generous of her.
I do, it is.
But, you know, at one point,
Tucker's leading him down this path about, you know,
Jeffrey Epstein and was there a coverup? And you can see that even Donald Trump in that moment is like, the fuck are you
talking about, man? Totally, totally. Like, you don't want to go down there. That's what I mean
about Laughlin and Fox. They don't want to be associated with Tucker. You see what Tucker is
doing now. He did it with Trump. He did with Bill O'Reilly. He keeps implying that Trump's going
to be assassinated, that the deep state is going to take out Trump. And that's the kind of thing I think he would be saying on Fox if he had
not been yanked off the air. Yeah. All right. So I have a question that's sort of beyond just Fox.
Like this is a network that's struggling with some of the same challenges that is long-term
challenges that are facing other television news outlets uh you know including the one you just
left audiences are getting older that was so nice of you left you mean fired i'll let you
characterize it audiences audiences are getting older most people under 65 getting their news
from just about anywhere else oh yeah ad tanking, streaming and digital alternatives haven't really worked
yet for anyone. Is TV news dying? Is it in trouble? Can it be saved? If not, like what's next? How are
people getting there? How are people getting like trusted information? Well, if TV news is dying,
and it is to some extent, it's been dying for a while. So I would say sometimes this might speed
up, it might slow down, but this is a trend we've seen for a while. So I would say sometimes this might speed up, it might slow down, but this is a trend
we've seen for a while.
When I was at the New York Times, I wrote a piece, must've been 15 years ago at this
point, about how young people consume information.
And the memorable quote from it was that young people consume news like a sponge.
You know, they don't even know where they get it.
They just sponge it up.
They soak it up.
They get it from wherever they get it.
They expect the news to come to them.
They don't expect to go and get it. And I think that's even more true today. Information is,
you know, you expect it to come to you. You're going to get it a thousand different ways.
When it comes to television news, though, in particular, you know, the network where I worked
at CNN, I like to embrace the word fired. You know, it was like the best thing that ever happened
to me because I got to be a stay at home dad for a while and really, really embrace it. But you know, at CNN, I was hosting a CNN plus show. Do you remember CNN plus?
Briefly? Yes. Yes. Cause it only lasted for a month. It was a streaming service that lasted
for one month. It was an experiment to figure out how to build that future, you know, news outlet.
Now they're doing it again. They have a channel on the max app, all with CNN streaming programming 24 seven. So I think every network is doing a version of that, you know, trying to
figure out what is the streaming option? What's the option that's going to be available to people
when they want it, where they want it. Fox News has it too. It's called Fox Nation. It's not doing
that well because if it was doing really well, they would tell us how many people had paid for it.
But I'm told it has a couple of million subscribers. Fox News reaches about 70 million cable households. So something
streaming for Fox is not going to be a replacement for Fox News. But it is a life raft. It is
something that they can use to try to swim or row or whatever. I'm not a big boat guy. What do you
do? You use a life raft to get to the future. At least they're building options. They're building alternatives. And I think that's the phase that we're in right
now. Other than the New York Times, which has an enviable number of subscribers and has really
figured out how to keep people paying online, everybody else is putting life rafts in the water
and trying lots of things and seeing what works. I mean, I feel like almost every shift in the way that people consume information
over the last decade has made it harder
to maintain a functioning democracy,
which requires us to pay attention,
have patience, be open to other points of view,
and most importantly,
exist in some kind of shared reality.
Am I being too pessimistic?
Are there developments that have made the project of democracy a little easier? I am actually as pessimistic as you are,
if not more, which I hate to say because I try to be an optimist and I try to teach the kids to be
optimists. Same. I'm the same way, but it's tough. But when it comes to the media ecosystem and this
environment, it feels to me like everybody is being poisoned.
And the reason I say that is, you know, information pollution, you know, propaganda,
this poison that's in the atmosphere, for example, the big lie of 2020, everybody gets affected.
Everybody takes it in. The people that live closest to it, you know, the proverbial plant
or the proverbial factory, they get the sickest, but everybody gets sicker. And what I don't see
are ways to combat that, that are as successful as the propagandists. The way I think about it is
the real news media, the reality-based news media, has to be louder than the liars. We have to find
ways to raise our voices so that we're louder than the liars. But that is awfully hard to do,
because you're immediately accused of being polarizing,
being ideological,
of being partisan,
being biased,
being sensational,
being all of it
just because you're trying
to be louder than the liars.
But I do think there are signs of hope.
I mean, I have to turn.
I'm an optimist.
I got to find signs of hope.
I look at all the nonprofit news outlets
that are growing,
that are expanding.
Yes, there's going to be bumps along the way, but there are lots and lots of these startups
that are trying to create new news organizations to replace some of what's been lost.
And especially when you get beyond politics, they're working.
You know, there's a hunger for news that's not just political, that's not just about
your city council or your board of education or your Senate race.
There's a hunger for news that is more broadly speaking and more palatable to people that's
not just defined by who you are and what you represent and who you hate.
You know what I mean?
There's an interest in news that's beyond just the partisan warfare.
Yeah.
You're going to say no, Brian, you're bullshit.
No, because I've heard you say you've got to be louder than the liars which is absolutely true that i think like the challenge is the truth
isn't always that it's not it's not easy to make the truth that loud or interesting or sexy right
you know what i'm saying it's like the kind of journalism that we would want for a functioning
democracy which is like responsible, like, you know,
well-researched, well-sourced journalism,
just telling the story like it is.
Like, it's hard for that to break through.
And when you try to break through,
you necessarily get a little, you know,
you try to, you have clickbait and you whip up outrage.
You're controversial.
Controversial, right?
And you're writing headlines
that people are going to click on. And I mean, like we you know, we we have a media company here
now and we do the same thing. You like find out that the that the rants about Donald Trump get
a lot more views than like a long explanation about some policy. And it's just like this is
what the audience wants and like what the fuck do we do about it? Well, number one, the audience
is not always wrong
uh what you just described indicates that the audience recognizes a grave threat to american
democracy that is true that is um hey love you audience love you listeners let me take it out
of the media conversation for just a moment because i was watching this house what do we
even call it impeachment inquiry it's like a pre-impeachment. It's like a premature impeachment. I was watching
this hearing on Thursday and the most memorable moments, all of the clipped moments, all the
social media videos, they were all Democrats. They were all people trying to be louder than the
liars. Like they were all from lawmakers who figured out ways to use their 30 seconds in
really powerful, vivid ways. And I wondered, you know,
again, it's not journalism that is clearly, you know, advancing a political agenda,
but they knew what they were doing. They came prepared. They came a lot more prepared than
the Republicans who had no clip worthy, newsworthy moments. And I do think there's a version of that
that applies in news as well. It applies in the information space. It applies in the policy wonk space.
I think there's a version that does apply more broadly.
I think that's right.
I think it's no coincidence that a lot of the members that have been successful at doing
that are younger.
So there's a generational issue there, too.
I also think that humor or at least lightheartedness is a good tool in this
because I think there's a lot of people both in politics and media who, you know, take their
subject matter seriously, but also take themselves maybe a little too seriously.
Oh, geez, John, I live in New Jersey and I'm so jealous of my Pennsylvania neighbors.
Look at what Senator Fetterman's doing with his Twitter feed. I'm stuck here in Jersey.
Yeah. And you can be, and I think you can be funny and you can poke fun at the absurdity
of politics and media without, you know, misinforming people or whipping people up
or ginning up too much outrage that's not deserved. So I do think there's possibilities there.
One last question for you. You've been very generous with your time. I feel like when you were at CNN, you were one of the biggest news and political
junkies in the business, weekly show, nightly newsletter. I know you haven't completely
unplugged because you're still tweeting and writing and podcasting and you're on TV.
But do you feel like stepping off the hamster wheel has changed your perspective on media and
politics at all? And like,
have you been able to reduce your news intake even a little or how has your perspective changed?
Yes, it has completely changed my perspective. And, you know, I said earlier, getting fired was
the best thing that ever happened to me. So was having to get off the news hamster wheel and not
have to care so much. I used to spend Saturday nights, you know, I'd be in bed, I'd be worried
about what's going to happen Sunday morning, what was going to happen, what should I do on my show,
what guests should I have on, you know, should I cancel Jon Favreau? Like in my head, I was always,
you know, I was always on. And to be off makes me think a lot differently about the news ecosystem
and like how the news world functions and sometimes doesn't function. So what I mean by that is
the news industry is really, really well built. So what I mean by that is the news
industry is really, really well built and really, really well serves news junkies. You know, people
like you and me, people that care deeply about politics. You could watch and listen forever.
There's never an ending. If you're a more casual news consumer, if you're someone who just
instinctively is very, very skeptical or just does not care that much, does not want to be bombarded.
The news industry as it works does not really function well for you.
It does not feed you what you're looking for.
I just think there's a huge opening, a huge vacuum for more casual news consumers.
Not people who are never going to vote, but people who might not vote.
You know, people who are on the fence, people who.
Here's another way I think about it. We oftentimes in, and I say we, cause I'm still writing for
Vanity Fair and doing stuff. And I got this book, like we always start our stories in the middle
and not in the beginning. Look at the government shutdown that we're about to go through. Most
likely, like we always talk about the shutdown, about how many votes for the CR and what's going
to happen next in the, in the house, the Senate. How about starting the story with
why is the government open
and what does the government
do for you every day?
What do these government employees
do to help your life
or hurt your life?
But what do they do every day, right?
And why is the Republicans
are always the ones
trying to shut it down?
Like the story never starts
in the beginning.
And as I look at this from the outside
and I think about startup
opportunities and stuff,
I think about how to serve more casual news consumers. I think that's
the great opening. No, I think about that from a political perspective all the time because
political scientists have done a lot of research on this. And they say that there's 20% of the
electorate pays very close attention to the news and to politics and And 80% does not. And it doesn't mean
that they never tune into the news. It doesn't mean they don't consume it, but they dip in and
out and they're more casual news consumers. And most of them vote. And, you know, they don't,
like you said, they don't vote in every election, but they vote. And a lot of times they may,
and they don't necessarily always vote for the same party. So they make their decision based on sort of what's
out there in the ether, the general news environment, and trying to shape that environment
and to give people good information, I think is, and to do it in a way that is sustainable from a
business perspective, which is the trick. I think that's sort of the project for the next generation
of journalists. Yeah, it's been really good to be on the outside
and think about all the flaws with the current system. Not because I want to tear it down. I
don't. I love the American news media. I lived in it for almost 20 years, but I do see ways to make
it better. You know, we oftentimes have the most interest in a news story when there's the least
amount of information. You know, something's breaking news and, you know, we really know
absolutely nothing about it, but that's when everybody wants to know everything.
And then by the time we actually know all the facts, everybody's moved on.
There's gotta be a better way.
That's why when I spent all this time with all these dominion filings and I'm thinking,
wow, there, we all heard like 10 amazing quotes from the filings.
We all heard Rupert Murdoch say, and let's make Trump a non-person.
We all heard Tucker Carlson saying, I hate Trump passionately.
And, and yet when you dig a little deeper, you find all these amazing revelations that are there for the taking, that are in public filings, but never actually
surfaced, never actually became public. And that's why I did Network of Lies, because I felt like
there were so many details in here that needed to be surfaced. And I think that's true on every
story. I think that's true across every story. I think that's true
across every beat that we have to figure out ways to get off of that breaking news cycle and more
into, okay, something's broken. Here's how to fix it. That's the more interesting service we can do
as journalists. Brian Stelter, thank you so much for joining Offline. The book is Network of Lies.
You can pre-order it now, networkoflies.com. Is that right? Yes, you can.
It'll be out November 14th.
November 14th. I'm very excited to read it.
Brian, thank you so much for joining.
Thank you.
Offline is a Crooked Media production.
It's written and hosted by me, Jon Favreau.
It's produced by Austin Fisher.
Emma Illick-Frank is our associate producer.
Andrew Chadwick is our sound editor.
Kyle Seglin, Charlotte Landis, and Vassilis Fotopoulos sound engineered the show.
Jordan Katz and Kenny Siegel take care of our music.
Thanks to Michael Martinez, Ari Schwartz, Amelia Montooth, and Sandy Girard for production support. And to our digital team, Elijah Cohn and Rachel Gajewski,
who film and share our episodes as videos every week.
Could civil rights be in danger because of a case about hotel websites?
This is the Supreme Court we're talking about, so you bet.
The court's back in session.
And strict scrutiny is just the pod you need to make this term a little less scary.
Each week, Melissa Murray, Leah Lippman, and Kate Shaw unpack what's on the docket for this term
and help you keep up with the slew of legal news headed our way.
Listen to new episodes of Strict Scrutiny each week wherever you get your podcasts.
Also, tickets to Pod Save America's live shows this fall and winter are available now.
We will be joined by amazing guests for our next live show in D.C.
That's going to be on October 19th.
We tried to get Bob Menendez, but just didn't have enough gold bars in the budget.
Nevertheless, tickets are almost sold out.
Join us for live shows in cities like Louisville, Cleveland, New Orleans, San Diego, and San Jose.
Head to cricket.com slash events to get yours today.