T-Mobile’s TVision closure points to virtual pay TV’s challenges

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What we’re following this week:

T-Mobile shuts TVision

Digital media layoffs

Workplace issues at Zimmerman Advertising


T-Mobile CEO Mike Sievert
T-Mobile CEO Mike Sievert.

Virtual pay TV struggles

While new streaming services launch left and right, T-Mobile is pulling the plug on TVision, its 5-month-old attempt to retain customers with a $10 per month streaming service, Claire Atkinson reported. Key points:

  • Its demise shows the challenges of the virtual pay TV services model that has struggled to find a profitable business.
  • These services historically haven’t offered much of a deal for would-be cord cutters. TVision was troubled from the start, the programming costing far more than it was charging.
  • In the streaming wars, T-Mobile’s loss is a win for YouTube TV and Philo, which it’s offering its customers instead.

Read more: T-Mobile pulled the plug on its streaming video service, TVision, just 5 months after launch

Also read:


nancy dubuc vice ceo
Vice Media CEO Nancy Dubuc.

Digital media takes another hit

Just as things are starting to look up with more people getting vaccinated and offices planning for reopening comes news of layoffs at a handful of digital media darlings, Steven Perlberg reported.

This may have surprised people who may have thought the blood-letting was over after last spring when advertisers hit the breaks, leaving many ad-dependent media companies to cut costs.

But the challenges these companies faced aren’t new:

  • Vice Media and HuffPost, along with other VC-backed media companies, have struggled to reach their backers’ expectations. HuffPost was just acquired, a move that’s usually followed by layoffs as merged companies look to cut duplicative costs.
  • Mel Magazine, an arm of Dollar Shave Club, was known for its distinctive men’s lifestyle coverage. But as a brand-backed publication that didn’t have any ad revenue coming in, its financial purpose was unclear.
  • And Medium, which also announced cuts, has changed its approach to content countless times over the years, shifting from an ad- to subscription-driven model. This time it was to scale back its own publications that it started just a few years earlier.

Subscriptions and advertising support many news outlets very well, of course. These companies didn’t have enough of either, or their execution was flawed.

Some digital media companies could get a lifeline by going public through SPACs. But the underlying business challenges they face aren’t likely to go away.

Read more: Vice Media just laid off a handful of digital staffers

Also read:


Jordan Zimmerman
Jordan Zimmerman, founder and chairman of Zimmerman Advertising in Fort Lauderdale, Florida.

Zimmerman Advertising complaints

Zimmerman Advertising and its founder Jordan Zimmerman bear all the trappings of success, with billions in revenue and clients like McDonald’s and Nissan.

But some employees said they experienced micromanaging, misogyny, and racism at the Omnicom-owned agency, Lindsay Rittenhouse reports.

From her story:

In April, Zimmerman Advertising – an Omnicom-owned ad agency in Fort Lauderdale, Florida, known for its work with clients like McDonald’s – laid off a batch of employees in the pandemic. That day, the founder and chairman Jordan Zimmerman addressed the remaining staff on a call.

Three people on the call said Zimmerman told employees that, while they were spared, they would need to work “two and a half times harder” or he would replace them with the laid-off employees who had “begged” for their jobs.

Fast-forward to this March, when some employees accused the agency of pressuring them to go back to the office, regardless of whether they had been vaccinated or had high-risk family members. In some cases, employees said management threatened layoffs if they didn’t return.

Read the full story: Employees say they experienced racism and sexism at Zimmerman Advertising, an Omnicom agency known for clients like McDonald’s and Nissan


Other stories we’re reading:

Thanks for reading, and see you next week. And remember you can sign up for this newsletter here.

– Lucia

Read the original article on Business Insider

YouTube bans staged animal rescue videos

Hi and welcome to Insider Advertising for March 29. I’m senior advertising reporter Lauren Johnson, and here’s what’s going on:

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google youtube pichai wojcicki
Sundar Pichai, CEO of Google, Susan Wojcicki, CEO of YouTube at the Yerba Buena Center for the Arts in San Francisco in 2018.

YouTube plans to ban videos showing staged animal rescues. The policy shift comes after the platform was found running ads from major brands on videos depicting animal cruelty.

Read the story.


Nancy Dubuc, Vice Media CEO

Vice Media just laid off a handful of digital staffers

Read the story.


fast and furious 9
Vin Diesel and John Cena in “F9”

NBCUniversal has discussed a new subscription video-streaming service separate from Peacock

Read the story.


More stories we’re reading:

Thanks for reading and see you tomorrow! You can reach me in the meantime at LJohnson@insider.com and subscribe to this daily email here.

Read the original article on Business Insider