Aborted by the Market

The end of the age of free money has finally brought about the always-inevitable demise of the wicked e-thots of Jezebel:

Jezebel, a feminist US news site, was shut down by its owners on Thursday, with 23 people laid off and no plans for the outlet to resume publication. G/O Media, which owns Jezebel and other sites including Gizmodo and the Onion, announced the closure in a memo to staff, which was obtained by the Guardian.

“Unfortunately, our business model and the audiences we serve across our network did not align with Jezebel’s,” Jim Spanfeller, the chief executive of G/O Media, wrote in the memo, which was sent to staff on Thursday morning. “And when that became clear, we undertook an expansive search for a new, perhaps better home that might ensure Jezebel a path forward. It became a personal mission of Lea Goldman, who worked tirelessly on the project, talking with over two dozen potential buyers. It is a testament to Jezebel’s heritage and bona fides that so many players engaged us. Still, despite every effort, we could not find Jez a new home.”

Translation: Jezebel was losing so much money on a monthly basis that not even its most ardent ideological admirers in the media believed they had a chance of making a go of it.

Remember this inability to find anyone to fund a well-known and supposedly influential operation when people are talking about success in Clown World. None of it is real, none of it is popular, and none of it is genuinely profitable. It’s all been propped up by free money. The business world covered by the media is a Potemkin one that is little more than a brightly-painted facade that conceals the fact that there is nothing substantial behind it.

Razorfist, as is his wont, empathized with the newly disemployed Jezebelles, and helpfully encouraged them to look at the situation in what they might see as positive light, which is to say, as being aborted from the marketplace.

Looks like you’ll have to propagandize the old-fashioned way: by inserting your insipid horseshit into a children’s movie, video game, or sitcom script while flagrantly denying you’re fucking doing it!

And here is an interesting statement by a member of the union: “A well-run company would have moved away from an advertising model, but instead they are shuttering the brand entirely because of their strategic and commercial ineptitude.”

Not that it was needed at this point, but the statement further confirms the wisdom of building platforms that religiously avoid reliance upon the advertising model and thereby being able to put the interests of the core subscribers first.

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The End of Free Social Media

It would appear that either the intelligence services of the world have all the information they need now, or, more likely, they’ve decided that all those pictures of people’s pets and lunches simply isn’t worth the expense to obtain them and effort to analyze them.

Facebook and Instagram users have blasted the launch of a new paid-for service to remove adverts from the two platforms. Mark Zuckerberg’s Meta, the parent company which owns the two social media sites, said it was launching the subscription option to comply with EU regulations.

The change will force millions of users to decide whether they want to face personalised adverts, or fork out the fee for an ad-free offering.

But users attacked the idea, vowing to delete their accounts rather than pay for the privilege of no ads. The monthly subscription plans will cost €9.99 for web users, while iOS and Android users will have to shell out €12.99 a month. They will not be available in the UK.

I find it interesting that while UATV and SG have been criticized on occasion for requiring paid subscriptions for access – never mind that we were starting from complete scratch with no corporate stock market billions to spend on infrastructure – the realities of the market imposing itself is proving that it was the correct strategy from the start.

And notice that UATV+SG is half the price of the Facebook services, which shows how heavily these “free” services were being subsidized all along.

Facebook may be claiming that it’s only instituting subscriptions in order to comply with EU regulations, but you can be certain that it’s eventually going to do the same thing in the USA.

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The Saga of the Baen Exemplar

Jon is a sociopathic grifter who goes through life trying to insert himself into other peoples’ troubles to try and score clout for himself. He starts shit for others and then cries how he’s a victim. When you take exception to him fucking people over for clout he will say everybody but him is a secret leftist sell out and you just hate him because he’s “Christian”. Do not trust him. He’s fucking cancer. Seriously. I can’t accentuate this enough. Trust him at your own peril. That dude is the proverbial wolf in sheep’s clothing.

  • Larry Correia, 25 September 2023

I have zero interest in saying anything negative about Larry Correia or contributing to the never-ending stream of Baen-related drama. I’ve never had any problem with him, personal or professional. He’s a significant figure of the right-wing cultural scene and I like both his Monster Hunter and Grimoire novels. Quantum Mortis: A Man Disrupted was a conscious attempt to out gun-porn Larry in a science fiction setting. And even our disagreement about the ideal way to handle the Hugo Awards led directly to my favorite experience of my entire literary career, the epic two-year Rabid Puppies rampage, for which I will always be grateful.

However, given the public nature of these accusations about a valued contributor to both Arktoons and Unauthorized, I would be remiss if I did not clearly state for the record that Larry Correia is flat-out wrong about Jon Del Arroz. Larry is flat-out and provably wrong. I can testify, from personal experience, that Jon is neither “fucking cancer” nor a “vile fucker”, and that it’s both unprofessional and incorrect for any established writer to assert that he is.

Unauthorized subscribers who wish to hear Jon’s take can watch his UATV-exclusive video on the subject.

And since we’re speaking of Jon Del Arroz, I’m pleased to observe that his novel JUSTIFIED, the first in The Saga of the Nano Templar, launched in episodic format on Arktoons today.

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YouTube Piles On

Despite him not having even been accused of streaming anything objectionable on YouTube, the social media giant has demonetized Russell Brand.

YouTube has stopped Russell Brand from being able to earn any money through his channel for ‘violating our Creator Responsibility policy’.

The 48-year-old produces around five videos a week for his 6.6million subscribers, earning him an estimated £1million a year.

Under the terms of his suspension Brand – whose net worth has been estimated at between £15m and £40m – will still be allowed to post videos on the platform but will not receive any of the advertising revenue.

YouTube said in a statement: ‘If a creator’s off-platform behaviour harms our users, employees or ecosystem, we take action to protect the community. This decision applies to all channels that may be owned or operated by Russell Brand.’

This is why it is so foolish for these public figures to prioritize reach over stability. What is the point of building up a massive social media following on a platform where it can, and will, be taken away from you overnight?

This is also why UATV, and other independent platforms with paid subscriptions, are the wave of the future. But it will probably require the collapse of YouTube before most creators are able to seriously consider those platforms, because the allure of YouTube fame and money is far too strong for them to resist despite the obvious risks.

JUST IN: “We will move to an economic model of a small monthly payment to use X.” – Elon Musk

Anyhow, YouTube’s action, in combination with the media blitz, does make it obvious that Brand’s cancellation is an organized, inorganic action.

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The Media Extinction Event

Clay Travis explains why ESPN is sinking fast, why the free ride that sports fans enjoyed at the expense of everyone else with a cable subscription has come to an end, and the inevitable implications for everyone in the media business

ESPN knows that their cable and satellite business is collapsing but, and this is key, they’ve also done the math and realize that streaming is going to destroy their existing cable business. Because, and this is what no one seems willing to say, ESPN doesn’t just have one bad business now — the cable and satellite bundle — they have the streaming business too, which is an even worse business. And, and this is very key, each business is accelerating the demise of the other. Streaming isn’t making ESPN stronger, it’s making ESPN weaker because it’s hastening the destruction of a profitable business — cable and satellite — for a money-losing business — streaming.

And that’s what many are still missing — as the cable and satellite bundle boat takes on water and sinks, the streaming bundle is also taking on water and sinking too. ESPN has tried to sell people on the idea that at the exact moment that the cable and satellite bundle collapses they are going to step to a brand new business, the streaming business, and it’s going to be a sturdy and successful lifeboat that carries them to richer waters.

But the reality is, streaming is a way worse business than the cable and satellite bundle. Because the only people who pay for ESPN will be sports fans. The free ride is over, your Aunt Gladys is never signing up and subsidizing your sports viewing again.

Let’s say ESPN makes $8 billion a year now in subscription fees. ($10 a month x 70 million subscribers they has before Charter cut this by 15 million). Toss in another two billion in advertising and let’s say ESPN presently nets around $10 billion a year. Okay, how many people will sign up for ESPN as a direct to consumer streaming service? If they could get 70 million subscribers we’d all have to pay $120 a year for ESPN streaming by itself. (This assumes advertising will still be the same, which it won’t, but let’s just be generous and pretend it will.) But, as I noted above, many of these people paying for ESPN now as part of their cable and satellite package never watch ESPN.

So how many people will actually subscribe to a direct to consumer ESPN streaming service? Turns out there are some early test cases.

The NFL Sunday Ticket is the most desirable direct to consumer product on the planet. Do you know how many households subscribe for NFL Sunday Ticket? Around three million.

Uh oh.

Wait a minute, you’re telling me that the NFL can only get around three million households to sign up for actual NFL games, all of the out of market games, in the entire country?

We’ve got a major math problem here for ESPN.

In other words, even if we’re generous and we assume all the other sports combined generate as much television interest as the NFL, we’re looking at a decline from 100 million at peak to six million. That’s a decline of 94 percent in households. In monetary terms, if we use a single-season, single-team MLB subscription as a stand-in for all other sports, that’s an 88 percent decline in revenue from $10 billion to $1.23 billion… with $45 billion in rights fees owed through 2027.

No wonder the Saudis are licking their lips and looking to buy up more sports leagues instead of teams. It also explains why Bob Iger is desperately casting around for anyone who wants to buy pieces of the collapsing Devil Mouse empire. But it’s not just Disney that is facing the precipice.

TNT, Turner, AMC, Nickelodeon, you name the channel, all of them are basically being held together by the cable bundle. And ESPN is the most important channel in the cable and satellite bundle, it’s the linchpin, the anchor store. ESPN is your neighborhood shopping mall’s anchor tenant — the Macy’s, the Nordstrom, the Dillard’s the JC Penny. When a mall’s anchor tenant leaves the mall is often dead for, the rest of the shopping mall collapses around it. That’s why the best analogy for ESPN isn’t Blockbuster, it’s Sears, a big mall anchor tenant that collapsed and went bankrupt.

Okay, if you’ve read to this point, you might be thinking, “This feels like it’s going to be really bad, Clay.”

Uh, yeah, it is, that’s why I called it a media extinction level event.

And yet, the alternative media will survive this unscathed, because we’re already accustomed to being entirely dependent upon our direct supporters. No free riders, no advertisers. And so, as it happens, the great media extinction may be the best possible thing for the future growth of Arkhaven and UATV.

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