Medium can’t earn money from ads
The publishing platform, Medium, announced that it will cut out total of 50 employees, which corresponds to one-third of the team. Concern has been growing in recent times about the company’s business-based business model.
The company said it would seek new approaches to alternative page-based advertising policies, hoping to develop a viable and sustainable alternative for authors on this issue.
According to the CEO of the Medium, Ev Williams, there was virtually no reason to watch them in their existing ways. But they have come to the conclusion that there is momentum and sufficient equity in their hands, that proactive changes are in place, and that if they fail to do so, they will fail in the great misconception they initially made.
Williams said last year, they increased its popularity as a product, with readers and published articles growing by 300 percent. The company claims to have 60 million readers per month. In addition, more than a dozen boutique broadcasters were invited to do business with this platform. These include Awl Network and Bill Simmons’ new release The Ringer.
Williams has also suffered from the advertising market, stressing that the market is beginning to believe that it is moving towards illogical bottleneck traps, false news and other undesirable content. According to Williams, the advertising media system is broken and does not serve people. In fact, it was not designed to serve people. One of the things that Williams did not mention was that there was excessive competition in the online advertising market, and most of the time, Facebook and Google were at the forefront. Medium even with many broadcasters deal with a business can never reach the size that investors expect.
How will Medium become a new business model that will replace the old revenue model based on advertising revenue? The company has not yet given any information about it. However, alternatives are said to be subscriptions, monetary offers and tip boxes. For the moment, it’s hard to say whether they will generate more revenue than ads for Medium. Apparently, the company wants to develop a completely new model. If they succeed, they will have done an important job not only for themsevles, but also for the writers, publishers and readers. However, there is also a fact that it will be extremely difficult to achieve.