from The Atlantic
It’s my holiday tradition to bring tidings of discomfort and sorrow to my colleagues in the news business. One year ago, I described the media apocalypse coming for both digital upstarts and legacy brands. Vice and BuzzFeed had slashed their revenue projections by hundreds of millions of dollars, while TheNew York Times had announced a steep decline in advertising.
Twelve months later, it’s end times all over again. There have been layoffs across Vox Media, Vice, and BuzzFeed (and dubious talk of an emergency merger). Mic, once valued at $100 million, fired most of its staff and sold for $5 million. Verizon took a nearly $5 billion write-down on its digital media unit, which includes AOL and Yahoo. Reuters announced plans to lay off more than 3,000 people in the next two years. The disease seems widespread, affecting venture-capital darlings and legacy brands, flattening local newswhile punishing international wires. Almost no one is safe, and almost everyone is for sale.
It’s tempting to think that this is the inevitable end game of Google and Facebook’s duopoly. The two companies already receive more than half of all the dollars spent on digital advertising, and they commanded 90 percent of the growth in digital ad sales last year. But what’s happening in media right now is more complex. We’re seeing the convergence of four trends.