BuzzFeed missed its revenue target for 2015 and has slashed its internal projections for 2016 by about half, raising questions about whether the online news and entertainment network can meet the sky-high valuations put on new media groups by investors.
The company, known for its lists, irreverent content and fast-growing editorial operation, had projected about $250m in revenues for 2015 but generated less than $170m, according to three people with knowledge of the situation.
The company has halved its internal revenue target for 2016 from $500m to $250m, the people said.
6/5/2015: Apple rewrites app store economics
Apple is planning a departure from the pricing formula that has defined the economics of digital media for a decade, which would cut the 30 per cent fee music, video and news companies pay on subscriptions through its App Store.
The iPhone maker is discussing new commercial terms with media companies, people familiar with the matter said, to change the 70/30 “Apple tax” pioneered by Steve Jobs when its late founder launched the iTunes music store in 2003.