Nonetheless, the decline is surprising, according to Marshall.
“If your goal was to try and reach a larger audience, dropping a paywall should certainly not hinder that,” said Marshall.
But according to interviews with experts, as well as people familiar with the matter who requested anonymity to speak candidly, one factor has played an outsized role in explaining the drop-off: Quartz’s new ownership.
A complicated acquisition
Two weeks after Quartz dropped its paywall, G/O Media acquired the publisher for around $4 million, a figure that has not previously been reported, according to a source familiar with the matter.
At the time, the company was generating roughly $8 million in revenue but losing between $2 million and $3 million. A representative for G/O Media disputed these figures.
Since then, an exodus of roughly half the newsroom, combined with a bumpy platform migration and shifting editorial strategy, have exacerbated the decline in readership.
“Quartz’s reach cannot be fully counted by Comscore, given their worldwide audience, newsletters, podcast audience, social reach, etc.,” said a G/O Media representative. “That being said, as we are improving the site there has been a net decrease in U.S. traffic, but we have seen an increase in newsletter subscribers.”
For G/O Media, which monetizes primarily through display advertising, the situation has led to internal anxiety, prompting questions about the value of the acquisition and the viability of the G/O Media business model more broadly.
Last year, the privately held company failed to break even, although chief executive Jim Spanfeller positioned the outcome as a win, given the economic climate.
Spanfeller has disputed this account, saying that both Quartz and G/O Media are profitable.
“It’s been a year—what home runs has Quartz produced?” asked a person familiar with the matter. “This was supposed to be a huge win. Has the audience grown? Where is the upside?”
Cultural disconnect, staff exodus and shifting content strategy
From the outset, the merger raised questions of cultural chemistry.
Where Quartz prided itself on meticulously designed, in-depth reporting, such as its Field Guides, the G/O Media model champions volume and page views. To net a steady stream of fly-by readers, the G/O portfolio of websites, which includes Jezebel, Gizmodo and The Root, relies on tools like slideshows, lists and news aggregation.
Other points of friction, including an unpopular return-to-office policy, reduced opportunities for career growth and a more conservative dress code, including a no-shorts policy, have further rankled staff.
In total, the changes have led 19 Quartz reporters to leave the company in the last year, with roughly 24 remaining of the pre-acquisition headcount of 50, according to people familiar with the matter. A hiring freeze implemented in January across G/O Media has prevented Quartz from replacing all but one of the vacated roles.
Now, the remaining staff are expected to publish at least one story per day, a far quicker clip than their pre-acquisition cadence of 12 stories per month. At other G/O Media properties, writers must produce three stories per day, sources said. A 60% reduction in freelance budget, which was levied across the G/O Media portfolio in January, has further pressured staff, according to a person familiar with the matter.
