The Daily is dead. It was an expected departure. We all knew it was going to happen, not because we are savants of this industry but because we just knew its model was untenable. In simple terms, they just spent too much to get too little.
Although that way of business makes very little sense, News Corp. the biggest news conglomerate in the world, pushed it all the way to the tomb.
Why?
That's the big question. Why did this very succesful business found itself in such a bad position, spending millions upon millions without a hint of better things to come? It all started some twenty years ago.
Twenty three years ago, something called the World Wide Web was invented. At first it was looked as a fad. Some doubted it could ever be useful for anything other than some geeks sharing jokes. But as time passed, the web became the platform. It changed everything.
For me, the biggest change the web made was the destruction of agency costs for information. Let me explain:
Before the web, if you needed to research a subject, you went to libraries. You went to archives. You read page over page looking for a hint of the information you needed. Indexes were your best friend and biggest time saver. So information organizations had lots of employees doing research.
At the same time, if you wanted to know what was happening in the world, you bought a newspaper or watched or listened to news broadcasts. Big institutions with big budgets and lots of employees controlled the flow of information.
News empires used to thrive in this world without World Wide Web, where they were the gate keepers of all what was important. They had the monopoly of information and they used monopolistics practices to skim the profits out of it.
The web disrupted this by slashing the agency costs. Information flowed freely from person to person. You didn't need Reuters or the Associated Press to tell you what happened in the world, you can now just read about it from the protagonists of the news.
News Corp. has been slow to adapt to the change. Very slow. And stubborn. They don't want the world to change, they want the world just as it was before the web. So they kick and scream while the world changes around them. The Daily was one of its kicks. It has the old world DNA and as such it wasn't a good fit for our new world view.
The Daily was made for a different time, a time where people needed to be told what to think about the world. That world doesn't exist anymore. So The Daily had to die.
But, do all publications have their days counted?
No.
I think the new breed of publications that are starting to appear have a great future ahead of them. I'm talking about The Magazine, Next Draft, Evening Edition, and others that are reshaping the information market as we know it. Small, subject specific publications with very little staff and a lot to like. They take advantage of this new world and making money while doing it.
I believe these won't be the only ones. More will come, from different countries, in different languages and with different interests. It will take time (right now there's a barrier to entry which is the need to know how to make a web or an app) but they will come.
The web has, again, proven it has the power to change industries. I really want to know which industry is the next.