Digial media firms have begun grappling with some difficult financial realities.
At NiemanLab, Ken Doctorow surveys the landscape:
At BuzzFeed, a 32 percent miss in 2015 revenue and a halving of its 2016 revenue target, according to the Financial Times.
At Mashable, a massive layoff after the company failed to sell itself.
At Yahoo, an upcoming sale of its news-producing assets, portending great uncertainty for journalists employed there.
At Medium, a new way forward focused more on curation and licensing its platform for publishers and less on original content creation.
The list of cutbacks — at The Huffington Post, at Gawker, at Al Jazeera, at International Business Times, and at Salon among others — keeps growing. And each round poses new questions for a news business struggling to find a way forward in this millennium. After all, even if the old world of news faded (like its readers) into older age, at least we could point to the cohort of digital-native outlets with a bit of optimism.
I feared this day would come — the new digital news companies bumping into a wall.
Read the whole thing.
Meanwhile, here’s Shira Ovide’s take at Bloomberg:
Let the events of the past week serve as the 4,271st iteration of the same lesson: Digital media is hard. Every six months or so, companies that seemed to have cracked the formula for success in digital information and entertainment hit a wall. Names like Demand Media, Gawker, Mashable, Upworthy and BuzzFeed figure out how to get people to click, surf and share – and expectations go up. Then because of changes in tastes, technology and advertiser habits, it becomes more difficult to get people to click, surf and share. Business models that had traction for a while stop working as well or can’t live up to high hopes.
Interesting times indeed.
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