Arab Press

بالشعب و للشعب
Monday, Apr 06, 2026

The lessons that can be learned as Vice joins digital media casualty list

The lessons that can be learned as Vice joins digital media casualty list

Sky's Ian King says Vice, which is set to fall into the hands of its creditors, did not get to grips with the changing needs of its audience.

The tech sector is used to seeing companies lurch from boom to bust in a very short space of time.

Seldom, though, has there been as dramatic an evaporation of value as the one experienced at the digital media start-up Vice.

From a peak valuation of $5.7bn, in 2017, it looks set to be picked up for just $225m after filing for Chapter 11 bankruptcy protection.

It is quite the comedown for a business founded in 1994 in Montreal as a punk magazine and which, at the height of its popularity, employed 3,000 people around the world while owning an ad agency, a film studio, a cable network and a record label.

It even bought a pub, the Old Blue Last in Shoreditch in east London, where the likes of Amy Winehouse and Arctic Monkeys played secret gigs.

Along the way, it garnered some impressive names on its shareholder register, including the UK advertising giant WPP.

Rupert Murdoch's 21st Century Fox acquired a 5% stake in the company for $70m as long ago as August 2013, while another shareholder was Raine, the merchant bank currently advising the Glazer family on its sale of Manchester United.

The most eye-catching investments, though, were made by Disney, which put in around $400m, most of it in 2015 and 2016. It eventually emerged with a 26% stake in the business whose value it wrote down to zero in 2019.

All were attracted by a business whose gonzo-style video journalism from trouble spots such as North Korea convinced many people that it had found a way to attract the sought-after young audiences that established media brands could not.

Vice had a peak market value of $5.7bn.


Mr Murdoch himself tweeted in October 2012 that Vice was "a wild, interesting effort to interest millennials who don't watch or read established media".

Unfortunately, it was that very empathy with millennial audiences that proved to be one of the factors behind the downfall of Vice.

The most obvious factor that hurt all of these businesses was a shift in the market that saw the lion's share of digital advertising revenues vacuumed up by the likes of Google and Facebook.

But another was that what appealed to millennials did not appeal to the subsequent Gen Z audience.

They opted instead for alternative platforms like TikTok and Snap. It is thought that Gen Z audience, rather more clean-living - some would say puritanical - than the Millennials, were repelled by aspects of Vice.

Rupert Murdoch was among investors at Vice.


The group's 'bro' culture was very much driven by the personality of its co-founders. These included British-born Gavin McInnes, who later went on to achieve notoriety as a founder of the Proud Boys, the far-right organisation implicated in the storming of the US Capitol on 6 January 2021.

He, though, left in 2008.

In more recent times, the culture was set by another co-founder, Vice's former chief executive Shane Smith, who famously quibbled with a report in 2016 that he had spent $300,000 on a single dinner in Las Vegas, telling the Wall Street Journal: "It was $380,000, plus tip. I broke the Vegas tip record."

Almost inevitably, that 'bro' culture turned out to be indicative of something much worse, with the New York Times reporting on accusations of sexual misconduct in the company at the end of 2017. Two of its executives were suspended as a result and subsequently left the company.

By the beginning of 2018, investors were becoming frustrated at Vice's inability to make a profit from its large online audiences, while Mr Smith stepped down as chief executive in favour of Nancy Dubuc, a former broadcasting executive, who took steps to try and clean up the workplace culture.

The company became locked into a spiral of staff redundancies, followed by more declines in audience, followed by more redundancies. Costs were cut aggressively - even the Old Blue Last was sold - but profits remained stubbornly unattainable and particularly after the constraints of operating during the pandemic took a toll.

Ms Dubuc left in February this year, by which time, Vice was already being hawked to prospective buyers.

Vice is not the only digital media start-up to lurch from a crazy valuation to almost nothing.

Buzzfeed is another big name to have lost ground, closing its news operation


Buzzfeed, which earlier this month closed its news operations and laid off 15% of its staff, has also suffered a big drop in its valuation as it soldiers on.

Vox Media, another scrappy new media start-up, has also laid off staff and in February this year fell into the arms of Penske Media Corporation, owner of established media titles such as Variety and Rolling Stone.

Business Insider and Politico, two more digital news start-ups that successfully built strong reputations, have been bought by another established media player in Axel Springer, owner of Bild and Die Welt, two of Germany's best-selling newspapers.

In the meantime, some older media titles are flourishing, thanks partly because their revenues are driven by subscriptions as well as advertising.

In the US, the New York Times has even bought a media start-up of its own in the shape of The Athletic, a sports-focused publication.

The Boston Globe has begun trading profitably since being bought by John Henry, the owner of Liverpool FC, thanks to some buoyant digital subscription revenues. And in the UK, The Times is making a sustained profit for the first time since it was bought by Mr Murdoch in 1981, again driven by strong digital subscriptions and award-winning journalism.

All of which shows the value of providing scintillating content that paying subscribers want to read and, perhaps, of having plenty of so-called 'brand equity'.

Yet the success of those titles - other examples include the Financial Times and the Wall Street Journal - has been hard-earned and is not being replicated everywhere.

The Washington Post, which has been owned by Amazon's founder Jeff Bezos for a decade, has been laying off staff and is widely reported to be up for sale after suffering falls in both circulation and subscription revenues.

The LA Times, owned for four years by the biotech billionaire Patrick Soon-Shiong, has lagged its rivals in terms of building subscriptions.

As for Vice, about to fall into the ownership of its creditors, it can at least point to having exerted an enormous amount of influence over the wider media industry.

It forced everyone from the BBC down to re-think their approach towards packaging journalism for a younger audience.

It also, however, provided a text-book example in how not to grow old with your readers, viewers and listeners.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Iranian Drone Strike on US Embassy in Saudi Arabia Reportedly Targeted Intelligence Facility
Saudi Deputy Foreign Minister Meets French Embassy Official to Strengthen Bilateral Engagement
Saudi Arabia Calls on United States to Seize Strategic Opportunity to Reshape Middle East
Dating Apps Surge in Saudi Arabia as Social Norms Rapidly Evolve Among Youth
Saudi Arabia Detains Over Fourteen Thousand Illegal Residents in Week-Long Enforcement Drive
Saudi Foreign Minister Engages in Diplomatic Talks with Pakistan, Kuwait and Latvia on Regional Developments
Saudi Arabia Intercepts Cruise Missile as Regional Tensions Intensify
Saudi Stock Market Edges Higher as Tadawul Index Records Modest Gain
Underlying Rivalry Between Saudi Arabia and UAE Persists Despite Temporary Calm
Saudi Arabia’s Non-Oil Sector Contracts in March as Regional Tensions Weigh on Business Activity
Saudi Arabia Unveils Ambition to Establish Prestigious Global Prize Rivaling the Nobel
Saudi Crown Prince to Engage Wall Street in Push for Investment and Economic Expansion
Iran Accuses Saudi Arabia and UAE After Downing of Chinese-Made Drone
Saudi Arabia Condemns Attack on Hospital in Sudan, Calls for Protection of Civilians
Coordinated Drone Strike Targets CIA Facility Within US Embassy in Saudi Arabia
Italy’s Meloni Prioritises Energy Security and Strait of Hormuz Stability During Gulf Tour
Uncertainty Emerges Over Timeline and Direction of Saudi Arabia’s Ambitious Ski Resort Project
UAE and Saudi Arabia Escalate Strategy with Drone Operations Targeting Iran
Trump Delivers Characteristic Remarks on Saudi Crown Prince Amid Intensifying Iran Conflict
Drone Strike on US Embassy in Riyadh Caused Greater Damage Than First Reported
Saudi Arabia Introduces Flexible Solutions for Expired Visas Amid Regional Disruptions
Saudi Arabia’s Online Car Market Accelerates with AI Pricing and Fully Digital Buying Experience
Saudi Arabia Reassesses Defence Strategy as Iranian Drone Threat Drives Shift in Military Partnerships
Drone Strikes Target Saudi Arabia, Kuwait and Bahrain as Regional Conflict Intensifies
Japan and Saudi Arabia Align Efforts to Ease Rising Tensions with Iran
Saudi Crown Prince and Italy’s Meloni Strengthen Strategic Ties in High-Level Talks
SpaceX Explores Potential Five Billion Dollar Investment from Saudi Sovereign Wealth Fund Ahead of IPO
Saudi Arabia Lifts Key Import Barriers to Expand Access for U.S. Beef Exports
Saudi Arabia Enforces Strict Travel Penalties for Visits to Restricted Countries
Italy’s Meloni Embarks on Strategic Gulf Tour to Address Energy Security and Regional Stability
Saudi Film Festival Rescheduled to Summer as Regional Tensions Continue
Saudi Arabia Reports Forty Two Point Six Billion Dollars in Foreign Tourist Spending in 2025
Saudi Crown Prince and Russian President Hold Strategic Call on Escalating Regional Crisis
Saudi Arabia Advances Rail Network as Strategic Alternative to Strait of Hormuz Shipping Route
Ruanyun Edai Launches Saudi Arabia Hub With Forecast of Ten Percent Revenue Growth
Greek Defence Minister Visits Troops in Saudi Arabia Following Successful Missile Interception
Saudi Arabia Expands Global Strategy With Focus on African Critical Minerals
SpaceX Explores Potential Five Billion Dollar Investment From Saudi Fund Ahead of Possible IPO
US Central Command Dismisses Iranian Claim of Mass Casualties Among American Personnel in Saudi Arabia
Co-Diagnostics to Establish Molecular Diagnostics Facility in Saudi Arabia Through Joint Venture
Trump Engages Saudi Crown Prince in Talks on Potential Iran Ceasefire
Saudi Arabia’s Sadara Suspends Operations as Supply Chain Disruptions Intensify
Saudi Arabia Accelerates Energy Shift by Trading Oil Revenues for Battery Investments
Saudi Arabia Introduces Flexible Options for Expired Visas Amid Regional Disruptions
Online Narratives Surge as Iran–US Tensions Spill Into Digital Arena Following Trump Remarks
Saudi Arabia Urges Trump to Seize Strategic Moment as UAE Weighs Ground Deployment
Saudi Arabia Redirects Nearly One Million Barrels of Oil Daily Away from Strait of Hormuz
Saudi Arabia Carries Out Execution of Businessman Linked to 2011 Qatif Unrest
Ukraine–Saudi Defense Pact Signals Rising Demand for Battlefield Expertise
Saudi Arabia Balances Diplomacy and Defense Preparedness Amid Iran Conflict
×