TheSkimm rebootsThe pandemic is adding to the challenges many venture-backed digital media companies have had meeting their backers' expectations for exponential growth. It's convenient for CEOs to blame Google and Facebook for hogging all the ad revenue or the pullback in ad spending, as TheSkimm's did in laying off 20% of its staff recently.
But often these companies were marginally profitable to begin with, and their problems long preceded COVID-19., in the case of TheSkimm, while it built a passionate community of readers, it was too reliant on one product that has advertising and audience limitations. Now it's trying out a new membership program and refreshing its branding, but the overarching question it faces is how big a company built on a consumer newsletter can become.
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