The Messenger’s recent failure highlights several important differences between establishing a tech startup and a media endeavor in the always changing world of media entrepreneurs. To delve deeper into these distinctions, I’ve gotten in touch with some outstanding authorities in the industry.

With a strong $50 million beginning investment, The Messenger was founded in May 2023 with the lofty objective of becoming a significant center-left news organization. But in just seven months, the ideal was dashed, raising questions about why conventional approaches were unable to match the kind of success experienced by tech startups.

The Messenger’s strategy, which was based on large page views and conventional advertising revenue, stood in sharp contrast to the flexible, iterative approaches frequently used by Internet entrepreneurs. Jimmy Finkelstein, a media entrepreneur, spearheaded the idea, which presumed that success could be achieved by copying previous models. But as many experts have pointed out, this outdated approach overlooked audience preferences, the realities of competition in the news industry, and the changing nature of media consumption.

Perspectives From The Startup Field

Superlogic’s CEO and co-founder, Lin DaiDAI -0.1%, highlights that media performance is mostly dependent on the caliber of the material and the ability to quickly adjust to the shifting tastes of the audience, which calls for significant upfront costs.

“Running a media startup is very different from running a tech startup. Media success relies heavily on both content quality and the rapidly changing audience preferences. While most tech startups can often iterate fast from mistakes, media success often requires massive upfront investments. Social media has disrupted traditional models, while Web3, decentralization, and AI will further challenge content focused businesses into the future.”

Amanda Terry draws attention to the intense rivalry in the news sector as Founding Partner of ACTAI Ventures, an early stage venture firm she co-founded with Bill Tai.

The president and cofounder of Now Media, Alejandro Navia, draws attention to the particular difficulties that media companies confront. Working at a breakneck speed, the media requires not only technological know-how but also a strong dedication to editorial quality—a quality that is sometimes disregarded in the hectic world of tech startups.

“In the rapidly evolving digital landscape, running a media company presents unique challenges that are often more complex than those faced by tech startups. While tech can iterate and evolve through versions and updates, media companies are tasked with the monumental responsibility of delivering accurate, engaging, and high-quality content every single day without fail. This relentless pace, combined with the imperative for credibility and audience trust, makes media an exceptionally demanding.”

The CEO and founder of Styles Ventures, Jennifer Styles, highlights the difficulty most entrepreneurs have in generating and maintaining income streams. Her statement highlights the resource requirements and financial complexities that set media firms apart from their tech rivals.

“Unfortunately, most startups have a challenging time succeeding if they’re not monetizing and sustaining their revenue streams. It sounds like this may have been the case for The Messenger. As a former journalist, I think it’s time to disrupt traditional media, I believe the creator economy will begin to shine and they will monetize their work in a decentralized way.”

Experts generally agree that managing a media company involves difficulties beyond what traditional tech startup models can handle. General Partner at 3+ Ventures Sara Ledterman notes that The Messenger’s demise is due to its inability to adjust to the shifting landscape of news consumption.

“There are many lessons to be learned from the history of publishing that clearly were not considered by this team. The way people ingest news has fundamentally changed, legacy publishers were slow to learn that and got hit heavily in the last recession when blogging gained traction, then again when social became the primary source for news. Running a news organization these days requires that the bloat has to go and there has to be a clear customer acquisition strategy.”

Sara goes on Without time, it is impossible to develop the “Know Like Trust” of an institutional media company. Even the establishments are unable to conceal their reporting biases in support of the political beliefs of its proprietors and/or sponsors. People fact-check 12 ways to Sunday because there is too much transparency in the world these days. An audience won’t be captivated if you don’t adopt an extreme stance.

The income prediction of The Messenger is called into doubt by James Ledbetter, Editor and Publisher at FIN and author of “Starving to Death on 200 Million,” who emphasizes the importance of realistic goal-setting and a detailed grasp of the market. The Messenger’s demise is a harsh reminder that building a successful media firm needs more than just assembling a sizable following; it also calls for creativity, flexibility, and a keen awareness of how the media landscape is changing.

“To me the mystery is not why The Messenger shut down, but why anyone ever believed that it would work as described.

Jimmy Finkelstein is a prosperous, intelligent man with a solid media background. However, it was pure fiction that they could set up a newsroom with hundreds of reporters and bring in tens of millions of dollars. The journalism itself was unremarkable, and the notion—as far as tell—that appearing to be “neutral” would draw readers to them is a grave misinterpretation of the audience that the media currently appeals to.

Media technology has potential, notwithstanding the distinctions between managing tech and media startups. As Sara Ledterman points out,“I believe there is tremendous potential in the space to merge good journalism with digital delivery that has not been figured out yet. As digital news readership and social media become homogenized, good journalism is currently dying at the expense of dopamine scrolling.”

Conclusively, the unraveling of The Messenger highlights the necessity for media entrepreneurs to navigate their path while acknowledging the distinct obstacles they encounter. To succeed in this field, one must use a new, flexible approach that acknowledges the complex dynamics of the contemporary media ecosystem rather than simply copying outmoded patterns.

Conclusively, the unraveling of The Messenger highlights the necessity for media entrepreneurs to navigate their path while acknowledging the distinct obstacles they encounter. To succeed in this field, one must use a new, flexible approach that acknowledges the complex dynamics of the contemporary media ecosystem rather than simply copying outmoded patterns.

Important Ideas

1. Operating a tech startup and a media startup are very different.
2. Both the quality of the material and the audience’s fast shifting preferences are critical to the success of the media.
3. Making large upfront investments is frequently necessary to achieve media success; quick iterations in response to errors are not usually possible.
4. There is fierce competition in the news industry.
5. Support teams working in a lean manner until they find their product-market fit. Then, when you are certain that more funding would help the company scale with strong unit economics, provide it.
6. The problems of running a media company are different and often more intricate than those confronted by digital startups.
7. Because of its unrelenting pace and the need for legitimacy and public confidence, the media is an extremely demanding field that calls for not only technological know-how but also a strong dedication to editorial excellence.
8. If they’re not successfully monetizing and maintaining their revenue sources, the majority of startups find it difficult to succeed.
9. In order to run a news business today, bloat must be removed and a clear consumer acquisition strategy must be put in place.