Implosions

Despite the fact that basically everyone likes movies, video games, and reading things on websites, every company that does one of those seems to continue to go out of business at an alarming rate?

For the sake of future readers, today I’m subtweeting Vice and Engaget both getting killed by private equity vampires in the same week, but also Coyote vs Acme, and all the video game layoffs, and Sports Illustrated becoming an AI slop shop and… I know “late state capitalism” has been a meme for years now, and the unsustainable has been wrecking out for a while, but this really does feel like we’re coming to the end of the whole neoliberal project.

It seems like we’ve spent the whole last two decades hearing about something valuable or well-liked went under because “their business model wasn’t viable”, but on the other hand, it sure doesn’t seem like anyone was trying to find a viable one?

Rusty Foster asks What Are We Dune 2 Journalism? while Josh Marshall asks over at TPM: Why Is Your News Site Going Out of Business?. Definitely click through for the graph on TPM’s ad revenue.

What I find really wild is that all these big implosions are happening at the same time as folks are figuring out how to make smaller, subscription based coöps work.

Heck, just looking in my RSS reader alone, you have: Defector, 404 Media, Aftermath, Rascal News, 1900HOTDOG, a dozen other substacks or former substacks,
Achewood has a Patreon!

It’s more possible than ever to actually build a (semi?) sustainable business out there on the web if you want to. Of course, all those sites combined employ less people that Sports Illustrated ever did. Because we’re talking less about “scrappy startups”, and more “survivors of the disaster.”

I think those Defector-style coöps, and substacks, and patreons are less about people finding viable business models then they are the kind of organisms that survive a major plague or extinction event, and have evolved specifically around increasing their resistance to that threat. The only thing left as the private equity vultures turn everything else and each other into financial gray goo.

It’s tempting to see some deeper, sinister purpose in all this, but Instapot wasn’t threatening the global order, Sports Illustrated really wasn’t speaking truth to power, and Adam Smith’s invisible hand didn’t shutter everyone’s favorite toy store. Batgirl wasn’t going to start a socialist revolution.

But I don’t think the ghouls enervating everything we care about have any sort of viewpoint beyond “I bet we could loot that”. If they were creative enough to have some kind of super-villian plan, they’d be doing something else for a living.

I’ve increasingly taken to viewing private equity as the economy equivalent of Covid; a mindless disease ravaging the unfortunate, or the unlucky, or the insufficiently supported, one that we’ve failed as a society to put sufficient public health protections against.