Mic's Collapse: A Cautionary Tale for Publishers in the Digital Age
Mic, a once-thriving digital media company, has faced significant challenges in recent years. In late November 2018, it laid off around 60 to 70 employees. This came after a dramatic drop in audience following Facebook's algorithm change in January 2018, which left Mic with less than half its audience. The company's collapse is another blow to publishers who relied heavily on distributive strategies and frequent content pivots.
Mic's struggles began when Facebook's algorithm change in 2018 significantly reduced traffic to the site. This left the company with a site that could no longer sustain growth on its own. The company's misguided strategy of investing in expensive, resource-intensive CMS platforms to keep up with algorithm changes and industry shifts further exacerbated its problems.
Mic's collapse is part of a larger trend among publishers who relied heavily on distributive strategies and frequent content pivots. Companies like Mashable, LittleThings, and Upworthy have also experienced dramatic layoffs following the same algorithm change. Jesse Knight, former CTO of Vice, suggests that publishers adopt a common publishing platform to effectively fight media giants. High-valued publishers will need to replatform to a cost-effective, massively scalable, and customizable solution to survive in 2019.
Mic's remaining leaders have planned to sell the rest of the company's assets to Bustle Digital Group for an estimated $5 million. This sale comes after Mic's unsuccessful attempts to keep up with industry shifts and algorithm changes. The company's collapse serves as a stark reminder of the challenges faced by digital media companies in the current landscape.
