NYTimes
The Media Equation
Two Traders in Gossip Go Toe to Toe
By DAVID CARR
Published: June 9, 2013
For close readers of the entertainment trade press, the story that rocketed around Hollywood a week ago offered a familiar and juicy tableau. Citing unnamed sources, the exclusive, headlined “Shocker,” suggested that a powerful, unruly star in the entertainment industry had been fired by a boss who had finally had enough
Anybody who has read Nikki Finke’s
Deadline Hollywood, an industry Web site, has seen this kind of public
execution. It is a specialty of hers, often backed up by a force field
that makes it come true regardless of whether it was to begin with.
Except this time the article was written by Sharon Waxman, who runs The
Wrap, a competing Web site, and the person who was reportedly being
given the gate was none other than Nikki Finke.
“Nikki Finke has been fired from the blog she founded, Deadline
Hollywood, and will be leaving the company as soon as this week,
multiple individuals with knowledge of the situation have told me,” Ms.
Waxman wrote on Sunday, June 2.
But the news was not followed by the sound of Champagne corks popping in
the executive suites Ms. Finke had routinely terrorized for one simple
reason: it did not turn out to be true. Ms. Waxman, perhaps driven by
wish fulfillment, wrote beyond the facts at hand.
Still, the town is enjoying the moment, watching a knife fight between
two industry observers and former pals who clearly can’t stand each
other. Ms. Finke has the upper hand, with a closely followed site and a
long reputation for breaking important industry news, while Ms. Waxman,
whose site has struggled, is clearly punching up.
Ms. Waxman’s decision to begin publishing The Wrap in 2009, with backing
from Howard Schultz, the chief executive of Starbucks, was viewed by
Ms. Finke as an act of betrayal. The sniping has been remarkable, even
by Hollywood standards, but the story of Ms. Finke being fired
represented a huge escalation.
There is irony in the moment because Ms. Finke is the queen of the ritual sacrifice, having roasted industry leaders like Marc Shmuger of Universal and Ben Silverman of NBC until they caught fire and ended up out of their jobs.
Ms. Finke is erratic but very effective, using old-school tactics to
power a new media enterprise. She and her reporters are direct in
telling their sources that if scoops go to competitors, a price will be
paid, and that if moguls appear at the conference of a competitor, like
The Wrap, they can expect to be spanked. The site and its alerts are on
the smartphones of most industry executives because Deadline Hollywood
covers the industry’s every wiggle fast and ferociously.
As one who sometimes wore out her welcome in mainstream media — she has
worked at The Associated Press, Newsweek, The Los Angeles Times and New
York Magazine — Ms. Finke found her métier on the Web, where sourcing
standards are often thin or nonexistent and the prosecution of
journalism is a far less mannered affair.
Ms. Finke’s site was bought four years ago with a great deal of fanfare by Jay Penske, a budding media mogul by way of auto racing.
Mr. Penske, who was eager to add heat and gravitas to a group of
marginal entertainment assets, walked into the deal with eyes wide open
and has been rewarded with a site that gets significant traffic and
advertisements. But he has paid dearly for it, spending a great deal of
time trying to sooth Ms. Finke or the targets she has maimed.
Deadline’s dominance over the traditional trade outlets was threatened
in 2010 after Janice Min, a New York magazine veteran and longtime
editor of Us Weekly, took over another competitor,
The Hollywood Reporter. To supplement the publication’s Web site, Ms.
Min began producing a visually lush weekly magazine that was very well
received. Web traffic and advertising have soared in part because Ms.
Min produces much more consumer-oriented entertainment coverage.
In an effort to compete, Mr. Penske bought Variety last year, and what
had been a strained relationship between Ms. Finke and Mr. Penske broke
out into a very public war. Ms. Finke said Mr. Penske had promised to
let her supervise the rebirth of the deteriorating Variety brand, but
instead froze her out.
She has been complaining bitterly and sometimes publicly since,
including saying in print that Mr. Penske had lied to her. Her frenzy
and Mr. Penske’s fatigue in managing same are well-known, but the feud
gained visibility because Ms. Finke’s contract, which runs until 2016,
allows her an escape that will arrive in 2014. No one knows what the
mercurial Ms. Finke might do — clearly not Ms. Waxman, not her boss, and
maybe not even Ms. Finke herself.
I buckled up and sent an e-mail to Ms. Finke, and in a subsequent phone
call she did not disappoint. After chewing me out for 15 minutes over a
four-year-old story she didn’t like, she turned to the matter at hand.
“I still work here and beyond that, I am not going to dignify Sharon
Waxman’s story,” she said. “She has a terrible reputation for accuracy
in Hollywood, and to dignify anything she writes with a denial is
ludicrous.”
At some length, Ms. Finke suggested that Ms. Waxman was seeking revenge
because The Wrap was being soundly beaten by Deadline — the traffic at
Deadline is more than twice that of The Wrap’s, according to comScore —
and that Ms. Waxman is jealous of Ms. Finke’s success, her compensation,
which she said was more than $1 million a year, and her site’s history
of breaking news.
Ms. Waxman said the story just hasn’t come true ... yet.
“I absolutely stand behind the story, and if facts change I will report
them as they occur,” she said. “For the moment, I have not been able to
get a direct answer from Nikki Finke or Jay Penske about her status
there.”
Ms. Finke was clear about her running disagreements with Mr. Penske, but
also said, “None of the great things that have happened at Deadline
would have been possible without Jay Penske.”
Although Ms. Finke is livid about Ms. Waxman’s suggestion that she had
been fired, she is enjoying the attention and has called around town to
see how the story is landing. And given her chronic conflicts with Mr.
Penske, she likes being seen as a flight risk.
“I have had all kinds of job offers since this started,” she said.
(Others confirmed that Ms. Finke’s brand of high-engagement,
high-velocity content is coveted by other media outlets.)
In our conversation, it was clear that Ms. Waxman, who has worked as a
reporter at The Washington Post and The New York Times, was also
enjoying being in the middle of things, even if the story that made it
possible refuses to come true.
The spectacle has been a delicious one for the peanut gallery in the
Hollywood Hills, in part because it keeps the involved parties
preoccupied and less prone to mischief elsewhere.
“I think that people are grateful for anything that takes the attention
off the rest of us,” said one Hollywood executive who deals with both
editors on a regular basis and hence would not speak on the record
criticizing either one. “But regardless of what happens, I don’t think
anyone believes that Nikki is going away.”
The story’s prominence — it ran on the front page of The Los Angeles
Times — is a testament to her hold on the imagination of the industry
she covers. A spectral figure rarely seen in public, she makes up for it
on the phone and in print. Ms. Finke sees herself as a Jeremiah, a
scold and a truth-teller in a business that trades in illusion and lies.
And while people in the film and television business complain bitterly
about her tactics, most of them play ball. As someone who used to cover
the Oscar season, I watched again and again as people used her site as
the seedy park on the outskirts of town where they sneaked up on others
and stabbed them from behind.
Absent that venal ecosystem, Ms. Finke would be just one more
rage-aholic with a modem. But she prospers by exploiting a narcissistic
industry that lives on fear and self-preservation. Even given her
excesses and mania, Ms. Finke has never pretended to be something she is
not, which is more than I can say for the industry heavyweights who
complain about her even as they provide her sustenance.
If it is true that people get the government they deserve, then many
industries get the media coverage they merit as well. Regardless of her base of operations, Hollywood deserves Nikki Finke. 

