From Medium to Small
Yesterday Medium founder Evan Williams took to the platform to announce that his company would be laying off a third of its staff (about 50 people across sales and support, including its Head of Publisher Development) and closing its New York and D.C. offices. He also made the bold proclamation that ad-driven publishing is dead. The full quote:
Upon further reflection, it’s clear that the broken system is ad-driven media on the internet. It simply doesn’t serve people. In fact, it’s not designed to. The vast majority of articles, videos, and other “content” we all consume on a daily basis is paid for — directly or indirectly — by corporations who are funding it in order to advance their goals. And it is measured, amplified, and rewarded based on its ability to do that. Period. As a result, we get…well, what we get. And it’s getting worse.
Although it’s fair to point out the irony of operating a publishing platform open to all viewpoints that also happens to be funded in part by #SponsoredContent and the multinationals of the world, his announcement doesn’t provide a realistic alternative to the ad model. As Nieman Lab’s headline bluntly pointed out today: “Medium lays off dozens as it tries to find a publishing business model that may not actually exist yet.” While the concepts of micropayments and subscription models are options, it seems pretty far-fetched to expect that the average consumer – who is used to getting endless content for free and has found elaborate ways to avoid the New York Times’ own paywall – would be willing to dish out to read the ramblings of a long-forgotten Facebook friend or indulge in this week’s latest hate-read. If that was Medium’s strategy all along, then it would have been better suited to courting sought-after writers and editors to curate premium verticals that could potentially command a price.
To that end, Medium’s now-dismissed Head of Publisher Development did do a strong job of encouraging niche publishing networks – including ThinkProgress, The Ringer, and a personal favorite of mine, The Awl – to migrate to Medium. Although Medium offered fewer banner ads to help these blogs generate their own revenue, the publisher program drew in publishers with promises that Medium would connect them to brands seeking sponsored content. According to Nieman Lab, these ad deals are no longer an option, leaving publishers with a platform that doesn’t allow traditional side-bar ads nor has the support staff capacity to help cultivate ad deals. It’s a fairly depressing convergence of VC-backed tech “disruption” of a model that largely worked for publishers (albeit imperfectly) in the first place.
One interesting side note is that Williams was also a co-founder of Twitter, which has its own well-chronicled saga of generating user growth and reaching profitability. Both companies essentially began as blogging or microblogging platforms and emerged as both self-branding as well as media-sharing tools for its users. For its part, Twitter is beginning to recognize its value as a media company and has embraced media’s traditional ad generation model. Medium appears to be going a different, leaner route and my main hope is that the publishers who migrated to the site can continue to thrive under that untested model.Â













