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MEL Magazine’s Cofounder On How The Brand-Supported Media Model Weathers A Pandemic – Forbes

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4 years ago

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Under coronavirus quarantines and lockdowns, people are consuming more media than ever, from streaming video to online news to ebooks. But that’s not good news for most news sites, thanks to a heavy reliance on advertising.

Ads are leaking away faster than pageviews are growing, for two big reasons: First, advertisers hate bad news, so they’ll avoid anything pandemic-related, and second, many of the businesses are themselves struggling, and their advertising budgets are the first thing on the chopping block.

For some media publishers, the best solution is to ask their readership to subscribe directly. “The digital paid content debate is over—if people want it, they’ll purchase,” says Joe Hyrkin, CEO at digital discovery and publishing platform Issuu. “We first saw the shift with music, where consumers essentially agreed to pay for content through platforms like Apple and Spotify. In terms of movies and shows, most major media companies have launched their own programming and platforms (e.g., Disney+) over the last six months, while cord-cutting has reached an all-time high.”

But subscriptions aren’t for everyone: Brands need a lot of name recognition to reach the scale needed to operate as a subscription-powered business. In news media, that’s the New York Times, which added half a million new subscribers in just the last quarter. But every new subscriber they add is, potentially, a subscription lost to another competing publisher.

Some services sell directly to the consumer, like the audiobook industry, which has the added benefit of an all-digital product. “Unlike traditional publishers who have been delaying new book releases because their model is still heavily reliant on physical retail, independent publishing is 100% ecomm and as a result it’s in an accelerated growth state,” Scott Dickey, CEO at Podium Audio, tells me. “Interestingly, sci-fi and fantasy genres are trending particularly well as it appears consumers are consuming more escapist content than pre-COVID periods.”

But none of that helps news organizations and magazines, which face tanking ad revenue and few paths towards a subscription model. Is any media model functional amid the 2020 pandemic?

The brand-supported model is one answer: A company operates its own magazine on the side, using it as a loss leader to engage its audience.

MEL Magazine, an online publication backed by Unilever’s Dollar Shave Club, offers an example of what this looks like in practice. It makes sense that this model would thrive as pageviews soar even while advertisers bail, since it never relied on advertisers to start with.

I ran a few questions past MEL Magazine’s cofounder and editor-in-chief Josh Schollmeyer to learn more about how MEL is doing these days.

Have you seen changes in your readership or in how people are consuming media?

There are definitely a lot more eyeballs out there. We just completed our best traffic month ever, and posted two of our best days ever in April as well. Overall, our traffic is up about 30 percent since sheltering-in-place began more or less nationwide. 

It seems — depending on the time of the day — people are looking for two types of content: 1) Something highly relatable about the pandemic (for example, how do I wear a face mask without fogging up my glasses?) or almost voyeuristic about the ways in which other people are spending lockdown (for example, the people throwing raves for one to pass the time); or 2) something as far from the epidemic as humanly possible (for example, a longer read on the forgotten Tiger King of Harlem, or anything that’s off-topic but also kinda fun and lighthearted). 

The morning is when interest in health/corona coverage seems highest; then by early afternoon, everyone is sorta burned out on it and wants something different; and as the day draws to a close, it’s all about what we call “sin and sloth,” a mix of entertainment/binge-watching suggestions, sex and drugs/booze posts.  

How has the current situation changed how you cover culture?

Not that much really. For starters, we’ve covered COVID and quarantine like we would anything else — by channeling our own fears, anxieties and intellectual curiosities. So most everything is drawn from our own lives and from our own questions about what we’re living through. Frankly, it’s helped quell a lot of our worry, because sorting through our own neuroses has given us a measure of control we wouldn’t otherwise have. (It’s also validating to see with the traffic being what it is, how many people are thinking about the same things, making us feel less alone, too). I’ve always joked that the site is me working through some sh*t, and I don’t know if it’s ever been more true than now. 

We’ve also tried to keep our coverage aligned with our core topic areas — dating, mental and physical health, digital and pop culture, money and work, etc. We have sharpened our focus a bit more on the class issues that this crisis has put front and center, especially with regard to “essential” workers at big box chains and who’s really getting bailed out by the government. But that’s also always been a big part of the brand ethos, as well as a major pillar of our much larger look at modern masculinity since so much of what’s affecting men today is economic (particularly as it pertains to the blue-collar guy).  

If anything, we’ve taken a newsier approach than normal — if only in the volume and type of posts we’re now doing — but we’re probably still more focused on the zeitgeist and bigger picture than we are necessarily chasing the newscycle. 

With so many media businesses struggling during this time, how is MEL thinking about its long-term business and goals?

Step by step. We’ve had a lot of interesting opportunities for monetization as we really have been paving the roadmap for brand-incubated journalism for a few years now, and a number of brands have approached us about how they might do something similar. We’ve developed a reputation as an innovator that’s definitely made a significant impact on men’s lifestyle content, and that’s generated the kind of IP that’s attracted interest from studios and networks here in L.A.

Of course, right now, I’m thankful that we have the kind of funding model that lets us focus on continuing to pile up traffic wins — and build a completely organic, highly compelling audience — as well as high-quality work that keeps letting us stand out. That should also help us weather this storm, because eventually, some degree of normalcy will return, or something different altogether will arise, and we want to be at the front of the line and firing on all cylinders when that happens.   

How has being a brand-backed media business impacted your business during this time? 

That’s honestly been the beauty of our model. It’s insulated us from the pressures that many other traditional media companies are experiencing — not just now, but over the last few years — and given us the room and time to really think innovatively about what our model could be in the future and how it can be sustainable enough to even get through a global pandemic.

Let’s block ads! (Why?)



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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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3 weeks ago

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August 23, 2024

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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3 weeks ago

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August 23, 2024

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition

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3 weeks ago

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August 20, 2024

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Trump Media & Technology Group’s stock has taken a significant hit, dropping more than 11% this week following a disappointing earnings report and the return of former U.S. President Donald Trump to the rival social media platform X, formerly known as Twitter. This decline is part of a broader downward trend for the parent company of Truth Social, with the stock plummeting nearly 43% since mid-July. Despite the sharp decline, some investors remain unfazed, expressing continued optimism for the company’s financial future or standing by their investment as a show of political support for Trump.

One such investor, Todd Schlanger, an interior designer from West Palm Beach, explained his commitment to the stock, stating, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.” Schlanger, who owns around 1,000 shares, is a regular user of Truth Social and is excited about the company’s future, particularly its plans to expand its streaming services. He believes Truth Social has the potential to be as strong as Facebook or X, despite the stock’s recent struggles.

However, Truth Social’s stock performance is deeply tied to Trump’s political influence and the company’s ability to generate sustainable revenue, which has proven challenging. An earnings report released last Friday showed the company lost over $16 million in the three-month period ending in June. Revenue dropped by 30%, down to approximately $836,000 compared to $1.2 million during the same period last year.

In response to the earnings report, Truth Social CEO Devin Nunes emphasized the company’s strong cash position, highlighting $344 million in cash reserves and no debt. He also reiterated the company’s commitment to free speech, stating, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”

Despite these assurances, investors reacted negatively to the quarterly report, leading to a steep drop in stock price. The situation was further complicated by Trump’s return to X, where he posted for the first time in a year. Trump’s exclusivity agreement with Trump Media & Technology Group mandates that he posts personal content first on Truth Social. However, he is allowed to make politically related posts on other social media platforms, which he did earlier this week, potentially drawing users away from Truth Social.

For investors like Teri Lynn Roberson, who purchased shares near the company’s peak after it went public in March, the decline in stock value has been disheartening. However, Roberson remains unbothered by the poor performance, saying her investment was more about supporting Trump than making money. “I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said, adding that she sees Trump’s return to X as a positive move that could expand his reach beyond Truth Social’s “echo chamber.”

The stock’s performance holds significant financial implications for Trump himself, as he owns a 65% stake in Trump Media & Technology Group. According to Fortune, this stake represents a substantial portion of his net worth, which could be vulnerable if the company continues to struggle financially.

Analysts have described Truth Social as a “meme stock,” similar to companies like GameStop and AMC that saw their stock prices driven by ideological investments rather than business fundamentals. Tyler Richey, an analyst at Sevens Report Research, noted that the stock has ebbed and flowed based on sentiment toward Trump. He pointed out that the recent decline coincided with the rise of U.S. Vice President Kamala Harris as the Democratic presidential nominee, which may have dampened perceptions of Trump’s 2024 election prospects.

Jay Ritter, a finance professor at the University of Florida, offered a grim long-term outlook for Truth Social, suggesting that the stock would likely remain volatile, but with an overall downward trend. “What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter said, highlighting the company’s struggle to produce a sustainable business model.

Still, for some investors, like Michael Rogers, a masonry company owner in North Carolina, their support for Trump Media & Technology Group is unwavering. Rogers, who owns over 10,000 shares, said he invested in the company both as a show of support for Trump and because of his belief in the company’s financial future. Despite concerns about the company’s revenue challenges, Rogers expressed confidence in the business, stating, “I’m in it for the long haul.”

Not all investors are as confident. Mitchell Standley, who made a significant return on his investment earlier this year by capitalizing on the hype surrounding Trump Media’s planned merger with Digital World Acquisition Corporation, has since moved on. “It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.” Now, Standley is staying away from the company, citing the lack of business fundamentals as the reason for his exit.

Truth Social’s future remains uncertain as it continues to struggle with financial losses and faces stiff competition from established social media platforms. While its user base and investor sentiment are bolstered by Trump’s political following, the company’s long-term viability will depend on its ability to create a sustainable revenue stream and maintain relevance in a crowded digital landscape.

As the company seeks to stabilize, the question remains whether its appeal to Trump’s supporters can translate into financial success or whether it will remain a volatile stock driven more by ideology than business fundamentals.

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