Business
Column: L.A.'s ultimate heartbreak industry isn’t Hollywood. It's local journalism
Whenever I think of the perilous state of local news, I think of Delicious Pizza in West Adams.
Great pizza! Small space, cool atmosphere. In the fall of 2017, I found myself there along with other journalism castoffs cursing the news gods.
I had just resigned as editor of OC Weekly after I refused to lay off half the staff. Daniel Hernandez was out of a job at VICE News after nearly four years there. Julia Wick had led the original LAist until its owner shut down the website because he claimed it wasn’t economically successful. Former LA Weekly editor-in-chief Mara Shalhoup was axed alongside most of her writers and editors after a new owner acquired the venerable alt-weekly.
Over beers and slices, we laughed and shared stories and fretted about the eternal erosion that is American journalism. None of us were about to give up on our beloved profession, though. There was talk of creating our own publication, but nothing serious. Instead, we hugged and went on to the rest of our lives.
Today, Mara is ProPublica’s South editor. Daniel edits The Times’ food section. Julia is on The Times’ 2024 election team. I’m a Times columnista, of course, frequently using Southern California’s past as a prism to understand what’s happening now and what might occur in the future.
And boy, does it not look good for local journalism — again.
Last month, the nonprofit Long Beach Post, which expertly covered the port city while the Press-Telegram atrophied, laid off nearly everyone. The publication’s board of directors maintained the move was necessary to save it from financial ruin — but former staffers insist it was retribution for their attempt to form a union.
Reporters for Knock LA, which focuses on social justice issues and law enforcement corruption, accused the publication’s sponsors, the leftist group Ground Game LA, of exiling them after they asked to spin off Knock into its own standalone entity.
For the record:
4:09 p.m. April 17, 2024An earlier version of this article said that Ground Game LA is the fiscal sponsor of Knock LA. Knock LA is part of Ground Game LA, and the two organizations share funding.
In the for-profit world, L.A. Taco, which centers food coverage while covering working class communities across Southern California, furloughed nearly everyone on its small team. Editor-in-chief Javier Cabral said they would be laid off if the publication isn’t able to hit 5,000 members by the end of April. (They were at 2,800 as of Monday). This follows the shuttering of one of California’s oldest continuously operating newspapers, the Santa Barbara News-Press, last year.
And, of course, there’s this paper. More than 100 of my colleagues were laid off last summer and earlier this year. Others took buyouts, and it seems recently that farewell emails from colleagues moving on to other jobs or retiring hit my mailbox daily.
It’s easy to portray what’s going on in local media as unprecedented and catastrophic, especially in the face of similar layoffs nationwide during an election year where accurate facts and nuanced coverage matter more than ever. But Southern California has always been an ossuary of failed publications done in by apathetic readership, clueless owners or a combination of both.
A 2006 rally at De La Guerra Plaza in front of the Santa Barbara News-Press newspaper’s offices. The newspaper, one of the oldest in California, ceased publishing last year.
(Michael A. Mariant / Associated Press)
Every generation in L.A. seems to suffer a journalism mass extinction event. In addition to what’s happening right now and what happened in 2017, there was the shuttering of two alt-weeklies, Los Angeles CityBeat and the Long Beach-based The District Weekly, at the turn of the aughts. I remember the demise of La Banda Elastica and Al Borde, two Spanish-language publications that focused on rock en español through the late 1990s and 2000s. Older folks will remember the end of the L.A. Herald Examiner in 1989, whose grandiose downtown headquarters are now used as a satellite campus by Arizona State University.
L.A.’s heartbreak industry isn’t Hollywood; it’s journalism. To paraphrase what the late A. Bartlett Giamatti said about baseball, it’s designed to break the hearts of those who work it.
You join the profession knowing that long hours, low pay and no respect from the public is the norm, yet you jump in anyway. You revel in your colleagues, your shared sense of mission and the stories you do — but then the reality of economics sets in, and you realize the good times won’t last. You wonder why readers don’t subscribe, why editors and publishers don’t innovate. You see co-workers lose their jobs or leave the profession — and then it’s your turn, one way or another.
It’s easy to armchair quarterback why publications fail. Blame technology, fragmented audiences, a lack of trust in news — it’s all of that, and more. But these conditions existed before photos appeared in newspapers, and will persist long after whatever Elon Musk inserts in our brains so we can’t quit X.
What’s going on in Southern California journalism is sadly familiar — yet not hopeless. There is something new with this generation of journalism orphans. In the past, we downed shots and mourned as our publications died. Now, to paraphrase another literary luminary, Dylan Thomas, reporters are not going gentle into that good night.
Long Beach Post and Times staffers have publicly protested against their bosses. Knock L.A.’s banished writers and editors are shaming their former benefactors online. L.A. Taco is asking for money like an NPR host during a fund drive pounding nitro cold brew.
“We went public with our dire situation, because how can you expect help if you don’t ask for it?” said Cabral, 35, who I’ve known since he was a teenager with his own food blog. “Journalism for me has always been a fleeting career in flux that pulls the rug right under you when you start to get comfortable.”
I wish all of these folks well as they try to make it, including my colleagues at The Times, which has been unionized since 2018 and where we’ve worked for almost a year and a half without a contract. But even if we all fail, the dream to do good journalism in Los Angeles will never die. More publications are already rising.
The Los Angeles Public Press is barely a year old but is already making an impact with its coverage of the San Fernando Valley and Southeast L.A. County. Caló News, which focuses on Latino issues, will launch its own initiative to cover southeast L.A. County this summer. Newsletters run by individuals are filling in news holes and getting subscribers in the process. Hyperlocal publications like The Eastsider and This Side of Hoover are still informing readers about their communities.
Last month, I attended a forum at City Club LA hosted by the nonprofit Latino Media Collaborative, which sponsors Caló News, about what it deemed a “crisis” in Southern California journalism. Among the speakers were former La Opinión publisher Monica C. Lozano and California Community Foundation Chief Executive Miguel A. Santana. The conference room was packed with reporters young and old hoping to plug into the millions of dollars that local and national philanthropic organizations are planning to spend on L.A.-focused news operations in the coming years.
I wish them well, too — because someone has to succeed in this cursed industry, right? Right?
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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