👉 Background: Vice began as an alternative music and culture magazine in the 1990s before getting investments from high-profile companies like Disney and Fox. At its peak in 2017, Vice was valued at $5.7 billion USD. But last year, Vice filed for bankruptcy before being sold for $350 million USD to a group led by the Fortress Investment Group.

👉 What happened: Late last week, things got even uglier for Vice: its CEO said Vice will be shutting down its digital operations, including its website. The icing on the cake? Vice will lay off "several hundred positions" due to "fundamental changes" to its strategic vision.

👉 What else: Now, Vice will only use its social channels to publish content and will only partner with established media companies to distribute digital content on their global platforms. In other words, Vice is transitioning to a studio model.

What's the key learning?

💡A studio model is when a company produces content that is sold to and distributed by other parties. And, that means Vice will no longer have a direct relationship with the public.

💡We are starting to see a pattern of highly-successful media brands shrinking as the digital ad market tightens further. It has become no longer cost-effective for Vice to distribute its digital content directly to consumers.

💡Vice aren't the only ones facing this challenge:

• Digital sites like The Messenger and BuzzFeed News have shut in the past year.
• Old school publishers like the Los Angeles Times, The Washington Post, and The Wall Street Journal have also cut jobs.

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