Medium is trying to be a two-sided marketplace. In any such marketplace, the producers want the audience to be as big as possible, and the consumers want the inventory to be as big as possible. Neither cares about Medium making a profit, except to the extent it incidentally furthers their own goals.
To succeed, either they monetize the transaction as a middleman (e.g. ads when transactions don't involve the exchange of money), or they figure out how to establish a direct financial relationship with the producers and/or consumers (like Costco's annual fee).
Medium has chosen a pathological route of using the two-sided marketplace principally to advertise a fee for their own product. (Yes, "principally" is fair. I believe their conversion rate is low, so the vast majority of impressions represent potential members of the two-sided marketplace that they're OK turning away, even though that frustrates the producers who wanted the audience to grow, or the consumers who wanted to read the article.)
The fact that they can't figure out a better way to make money than to turn away customers is not my problem. There are plenty of other places for me to read or publish content that have figured out how to be sustainable operations.
My personal viewpoint is that Medium is in a death spiral. If their paywall is abrasive, which I think it is, then I won't join, because I would question which content publishers would be OK being behind an abrasive paywall. Medium's real offer to me -- that they're where to find content from publishers I like -- has failed. That was their one and only job from my perspective. They failed.
I can't be the only one who feels this way.
if visitors numbers are shrinking you get no new customers.
add to that the risk of other platforms trying to get away your existing users:
- substack: both writers and readers - hashnode: targeting writters and readers from tech - dev.to: the same as hashnode - mastodon: longer posts and with elk and others better syntax - ghost : writers and readers
and many more.
so not paying attention to the base of the funnel is very costly in the long run: and this is what happened to Medium = ignored the base of the funnel (the free users) for a long period and focused on short term goals/income
Isn’t this the same as how Patreon works? I’m not too familiar with these services, but genuinely curious.
If charging for content is their business model then it's fundamentally flawed in my opinion. Why would people give away high quality content and let medium charge for it? It looks like they do have some revenue share programme, but Substack offer a simple and transparent 90% payment in your favour.
But the paywall, i.e. the metered paywall where some articles are behind a paywall by author choice and an unsusbcribed reader can read three of those a month, is up there. And I'm just coming at it from the opposite side. Many people here don't want to see a paywall. That's fine. But I'd like to see their reaction if the quality of what was behind it changed. A no might still be a no, but I think the tenor would change. So that's how my original take on fix quality first fits into the anti-paywall headline of other people. This model works well enough for us in the worst possible implementation that I believe it will work all the way if we have a better implementation, especially if there is more of a sense of that there's at least something valuable behind it.