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For years, the internet was seen as a threat that would eventually wipe out newspapers and magazines—a prediction that has partially come true, though not completely. Now, it appears that the digital world is beginning to consume itself. Vice Media, once a trailblazer in online content, is struggling to survive, with the company shutting down its widely imitated website and laying off hundreds of employees.
CEO Bruce Dixon stated, “As we navigate the ever-evolving business landscape, we must adapt and align our strategies to remain competitive in the long term. After careful consideration and discussion with the board, we have decided to make fundamental changes to our strategic vision at Vice. We continue to produce outstanding original content true to the Vice brand, but it’s no longer cost-effective to distribute our digital content in the same manner as before.” This optimistic outlook seems to mask deeper issues.
At its peak, Vice was valued at an astounding $5.7 billion and employed around 1,000 people globally.
Ad-supported websites are struggling as tech giants increasingly dominate advertising revenue, with retail media now capturing a significant share of the market. Google’s decision to phase out cookies has further complicated matters, and platforms like Google, Facebook, and TikTok are fiercely battling for market dominance, regardless of the impact on others. If Google reduced its commission as the online ad gatekeeper, it might offer some relief, but that seems unlikely.
Despite occasional claims of supporting a diverse range of media, agencies are more inclined than ever to allocate their clients’ budgets to the largest operators, who offer them the best deals.
No one really foresaw this outcome; perhaps the lesson here is to be cautious about what you wish for.