Greetings from Los Angeles and welcome back to In the Room. We’ve reached the slams laptop
shut ’til Monday moment. I sincerely hope you enjoy your weekend.
In tonight’s issue, news and notes from inside Condé Nast and the latest micro-clusterfuck between the union and H.R. over the shuttering of Teen Vogue. Plus, some insights from my Puck partners on Netflix’s play for the living room and some CBS legal drama.
🍸 Plus, on the latest edition of The Grill Room, Julia and I discussed Zohran Mamdani’s social
media–fueled mayoral campaign, the prolonged YouTube TV–Disney carriage standoff, ESPN’s latest play with DraftKings, MSNBC’s rebrand as MS NOW, and much more. Follow The Grill Room on Apple, Spotify, or
wherever you prefer to listen.
Mentioned in this issue: Ted Sarandos, Greg Peters, Elizabeth Stone, David Ellison, Stan Duncan, Versha Sharma, Alma Avalle, Jake Lahut, Roger Lynch, Danielle Carrig,
Anna Wintour, Emma Tucker, Will Lewis, Jo Bull, Elaine Welteroth, Phillip Picardi, and more…
Let’s get started…
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| Julia Alexander
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- A word on Netflix living room
domination: Trying to find a weakness in Netflix’s business model is like aiming for the thermal exhaust port on the Death Star. The company was closing in on 100 million U.S. and Canadian subscribers at the end of 2024, when Ted Sarandos and Greg Peters decided to stop reporting that number to focus on revenue and engagement. (Netflix is now hawking a new metric that reveals how many people are watching ads.) We don’t officially know whether
Netflix is still adding net users in the U.S., but we do know that the service has the most-loyal customer base of any streamer: Only about 2 percent cancel in any given month, far better than the industry average. On its earnings call last month, executives announced a quarterly profit of $2.55 billion.
But competition for time spent, the all-important metric that every executive across Hollywood and Silicon Valley obsesses over each week, is stronger than ever. And on
that score, Netflix appears to be reaching the upper bound of just how many eyeball-hours it’s humanly possible to capture.
In the first half of 2024, subscribers watched 94 billion hours of Netflix content, up from 90 billion over the previous six months, but total hours stalled out in the second half of last year. And while viewing reaccelerated in the first half of 2025, every incremental hour gets a little harder to hold. In the U.S., Netflix’s most mature market,
viewing as a percentage of total TV time has grown by less than half a percentage point year over year, according to Nielsen. Meanwhile, YouTube has grown its share by two percentage points.
It’s an issue that’s clearly on the minds of company executives. Peters spent a significant portion of the company’s latest earnings call bragging that audience engagement in the U.S. was up 15 percent since 2022. Elizabeth Stone, the company’s chief technology officer, recently
opened up about the streamer’s new engagement experiments, including more testing of shortform video, revamped kids’ profile menus, and the impacts of audience interactivity features like live voting.
Obviously, engagement is at least partially dependent on the popularity of new content. Just last quarter, Netflix was under pressure after reporting mere 1 percent growth in engagement year over year. Then it dropped KPop Demon Hunters, now the most watched movie ever on
the streamer. According to Parrot Analytics, the animated blockbuster slash cultural phenomenon drove a significant percentage of Netflix’s engagement into Q3—months after it was released. (If you left your house at all on Halloween, this may not shock you.)
Of course, breakout global hits aren’t a sustainable long-term strategy. Perhaps anticipating investor concerns, Sarandos made a point on last month’s earnings call to note that no single title typically accounts for more
than 1 percent of total hours watched. That’s one benefit of Netflix’s superscale. The downside, however, is that it becomes harder and harder to move the growth needle. Obviously, it’s not enough to just have more content—it needs to be better, and more engaging, too. Continue reading…
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| Eriq Gardner
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- Unfinished business at
Paramount Skydance: Behind the scenes of CBS News’s David Ellison–Bari Weiss reinvention, the company at large is still mired in staffing battles from the previous regime. To wit: On Friday, CBS filed a summary judgment brief in the $5 million discrimination case brought by Jeff Vaughn, the former KCAL anchor in Los Angeles who, backed by Stephen Miller’s America First Legal group, claims he was ousted in late 2023 for
being a white male. CBS points to “poor performance” as a legitimate, nondiscriminatory reason for Vaughn’s termination. But more notably, the company is also invoking the First Amendment, arguing it has a constitutional right to choose its anchors.
Paramount is going through sweeping layoffs, so don’t be surprised if we see a new round of discrimination cases, especially given how politics featured so heavily in the process of getting the Skydance deal cleared. Joseph
Jerome, a former production counsel on Entertainment Tonight, has just filed a complaint against the studio in which he, like Vaughn, claims to be a victim of D.E.I., fired for his age and race.
Paramount has settled other cases on the diversity front—the lawsuit brought by America First Legal on behalf of former SEAL Team writer Brian Beneker, for example—but Vaughn’s may be one they actually push to judgment. For Ellison, the irony of
defending D.E.I. in court may be beside the point; his broader goal is to protect his right to staff as he pleases.
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A handful of disgruntled employees confronted Stan Duncan, Condé Nast’s H.R. chief, about
the company’s decision to shutter Teen Vogue. There was a video, of course, which captures either a noble moment of employee solidarity or a bunch of entitled staffers willfully unaware of Condé’s dwindling fortunes and the realities of the legacy media business. Either way, how far they’ve fallen.
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On Wednesday afternoon, about a dozen, mostly Gen-Zillenial Condé Nast employees gathered on the 34th floor
of One World Trade outside the office of Stan Duncan, the company’s human resources director. The day before, Condé had announced that it would be shuttering Teen Vogue and folding it into Vogue.com—a seemingly overdue decision that nevertheless is not without some heartbreak. Six employees, including top editor Versha Sharma, lost their jobs amid the
restructuring.
The 34th floor congregants, who hailed from across the portfolio—The New Yorker, Wired, Bon Appétit, etcetera—either wanted to press Duncan on the rationale for that decision or execute some kind of performative rain dance that might somehow reverse his decision. Duncan, a Condé veteran once lauded by Human Resources Director magazine as “something of an HR icon himself,” understandably wanted no part of the ambush. In a video of the
confrontation obtained by The Wrap, Duncan repeatedly asked the group to return to their desks, noting that he didn’t have time to take their questions. He then walked down the hallway in the hopes of “returning you back to your place of work.”
Alas, this suggestion went unheeded. Alma Avalle, a writer and producer for Bon Appétit and the group’s most vocal representative, suggested that Duncan might not think his employees’ feelings were worth his time. Avalle
subsequently followed Duncan down the hall and asked if he was “running away.” In the final moments of the video, Avalle can be heard yelling after him: “Did you let go of Teen Vogue for political reasons?! What are you going to do to stand up to the Trump administration?!”
Later that day, Condé Nast fired Avalle and three other employees who confronted Duncan for “gross misconduct and policy violations.” The company also filed a charge with the National Labor
Relations Board against the NewsGuild of New York, which is affiliated with the Condé United union, over its “repeated and egregious disregard” of their collective bargaining agreement. The union responded with a statement calling the terminations “illegal” and demanding more answers about the layoffs. And thus concluded the latest micro-drama in a cascading series of them—the result of both the company’s character and the times in which it operates.
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As you’ve probably surmised by now, there are no heroes in this story. Most Condé sources viewed the union’s
confrontation as a sophomoric ambush by actors ignorant of both pre-pandemic workplace decorum and the obvious economic rationale for Teen Vogue’s closure, which the company first considered as far back as a decade ago. These people confessed privately that the union has become excessively disruptive, disorganized, and ineffective—and now it’s embarrassing the company, too. “What did they think they were going to achieve with such a stupid stunt?” asked one higher-up.
At the same
time, some feel that Condé moved too quickly to retaliate and might have benefitted from taking more time to review the matter—or at least ostensibly review the matter. There also may have also been some unintended casualties. Jake Lahut, a Wired political reporter and frequent MSNBC guest, was among the Condé Four. Based on the evidence provided in the video, he appeared to do nothing more than ask Duncan to clarify his definition of “congregating.” Obnoxious,
perhaps. But fireable?
Condé representatives have suggested that there’s additional footage of the confrontation, and sources have told me that some employees entered Duncan’s office without his permission. Condé has not provided that footage, and both C.E.O. Roger Lynch and his chief spokesperson, Danielle Carrig, did not respond to requests for comment.
Yes, this whole affair is secondhand mortifying, and a byproduct of Condé Nast’s
decline. It was not so long ago that this storied house of Anna and Graydon and Tina was known for its chauffeured Town Cars and low-six-figure annual clothing allowances and plane privileges. (If you’re unfamiliar with that history, The New York Times’s Michael Grynbaum wrote a book
about it.)
That Condé is long gone, and the people who operate the company want it that way. But as the budgets got squeezed and Covid- and #MeToo-era politics took hold, some employees adopted a posture of defensive entitlement. As I’ve noted in recent years, disgruntled Condé staff have marched up to Lynch’s (often empty) office, staged Oscars-themed walkouts, and, in a pitch-perfect expression of the W.F.H. era, bombarded Lynch and Wintour’s inboxes with sassy
reply-alls.
It’s not just Condé, of course. The Times, the Post… pretty much every major outlet of note has endured some version of these tantrums. Last summer, miffed Wall Street Journal employees stuck Post-it notes on the glass wall of Emma Tucker’s office in protest of a restructuring that affected a small
number of employees. (An aside: Do these Journal staffers realize how good they’ve got it under Tucker, who has turned out to be one of the more quick-witted editors of her generation? They could be languishing in the Will Lewis telenovela instead.) Emma wasn’t in her office—arguably the savviest way to handle these things—but her formidable and aptly named assistant, Jo Bull, was there to head off the charge. “Do you think this is very
helpful?” she asked. “Do you want to stick them on me?”
Anyway, what makes the most recent Condé micro-drama so notable is the swiftness with which the company moved to quash it. In previous years, the sensitivities of the era forced employers to accommodate these outbursts—make concessions, create new policies, coordinate working groups, accept protests as a form of feedback. No longer. Lynch, who has led the company through its later-stage emotional gyrations,
appears to have had enough of the circus. “You get paid to be here, this is a for-profit business, and the media industry is collapsing,” one high-level Condé source told me. “Have some awareness.”
From the union perspective, these broader societal changes may feel like further validation of Condé’s decision to shutter Teen Vogue. In the Elaine Welteroth and Phillip Picardi era, the celebrity-crush and prom-tips platform
transformed into a political, ideological, and otherwise woke forum for Millennials—chasing the traffic highs of “Donald Trump Is Gaslighting America.” Hence the vague, pervading notion that Teen Vogue could have been shuttered for “political reasons.”
But there’s a simpler explanation: Amid the
prolonged contraction of the magazine industry, the spinoff titles will necessarily be subsumed into the masterbrands. (As my partner Lauren Sherman has noted, “If Vogue Business is moving under the Vogue URL, then Teen Vogue should, too.”) This was a sober (and way-too-late) business decision that came amid a broader round of layoffs across the company—the umpteenth in recent history as Lynch & Co. continue to struggle toward profitability.
The great irony is
that the #Resistance era actually kept Teen Vogue alive for longer than the economics warranted.
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Puck fashion correspondent Lauren Sherman and a rotating cast of industry insiders take you deep behind the scenes of this
multitrillion-dollar biz, from creative director switcheroos to M&A drama, D.T.C. downfalls, and magazine mishaps. Fashion People is an extension of Line Sheet, Lauren’s private email for Puck, where she tracks what’s happening beyond the press releases in fashion, beauty, and media. New episodes publish every Tuesday and Friday.
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A professional-grade rundown on the business of sports from John Ourand, the industry’s preeminent journalist, covering the
leagues, players, agencies, media deals, and the egos fueling it all.
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