The Outline was a digital media company launched in 2016, aiming to offer a bold, design-forward news experience for millennials. Despite its innovative approach and significant funding, it struggled with editorial clarity and revenue generation. Acquired by Bustle Digital Group in 2019, it ultimately shut down in 2020 due to the pandemic's economic impact.
What was The Outline
The Outline, a digital media company, produced content centered on power, culture, and the future. Its unique value proposition lay in delivering insightful and engaging narratives on significant societal themes. Notably, it raised $10.15M in funding and garnered mentions in CB Insights research briefs, reflecting industry recognition.
Reasons behind The Outline's Failure
Muddled Editorial Vision The Outline struggled to define a clear and coherent editorial strategy, which made it difficult to attract and retain a loyal audience. The site was driven more by broad tones and an ideological commitment to newness rather than a concrete strategy, leading to confusion among readers.
Challenges with Advertising Model The Outline's rejection of traditional programmatic and banner ads in favor of immersive, high-quality ad experiences did not translate into sustainable revenue. The site underestimated the challenges of the digital advertising landscape, which is dominated by giants like Facebook and Google.
Failure to Scale Despite its innovative approach, The Outline failed to achieve the necessary scale to sustain its operations. Its traffic was too low to be tracked by comScore, and it had only about 2 million unique visitors at its peak, which was insufficient for long-term viability.
Impact on Investors and Market
The Outline's failure left investors like RRE Ventures disappointed, as the site struggled to attract a significant audience and generate sustainable revenue. The broader media market viewed its closure as a cautionary tale about the challenges of sustaining a digital media business without a clear revenue model, especially during the COVID-19 pandemic.
Lessons Learned from The Outline's Failure
Define a Clear Editorial Vision: Ensure your content strategy is coherent and resonates with your target audience to build and retain a loyal readership.
Adopt a Sustainable Revenue Model: Balance innovative advertising approaches with proven methods to secure consistent revenue streams.
Focus on Scalability: Prioritize strategies that allow your business to grow and reach a broader audience effectively.
Understand Market Dynamics: Stay informed about industry trends and competitive pressures to adapt your business model accordingly.
Prepare for Economic Uncertainty: Develop contingency plans to navigate financial challenges, such as those posed by global economic downturns.
Frequently Asked Questions about The Outline
When was The Outline founded? The Outline was founded in December 2016 by Josh Topolsky.
What were some key features of The Outline? The Outline was known for its design-forward, millennial-focused content and unique ad strategy with immersive, full-screen experiences.
Why did The Outline fail? The Outline failed due to a muddled editorial vision, flawed business model, and the economic impact of COVID-19.
Looking Ahead
As startup founders navigate the complex landscape of digital media, it's crucial to learn from past ventures like The Outline. For those considering winding down their operations, Sunset offers a seamless solution, handling all legal, tax, and operational burdens, allowing you to avoid penalties, reduce liabilities, and move on quickly to your next venture.
