Junkee Media will stop publishing its Gen Z focused Punkee website and will move to a smaller, creator-led structure. As a result of the moves “a number of roles are affected”, its parent company RACAT Group said.
Junkee blamed a challenging advertising market and money shifting to major social media for its shift in focus.
“This was a difficult but necessary decision to make Junkee Media sustainable. The economics of advertiser- supported digital publishing in Australia have become increasingly difficult,” RACAT Group chief financial officer Steve Morgan said.
“Advertising revenue keeps consolidating into the major platforms, while a growing number of competitors compete for a smaller pool. The same pressures have forced similar decisions across the industry, and we haven’t been immune. These changes reflect those conditions rather than the talent of the team, whose work has been excellent.”
RACAT Group, which owns Australian Geographic, the production house Northern Pictures and gaming developer Runaway, acquired Junkee Media from oOh!Media for $2.4 million.
Earlier this year, Sophie Hanson was hired to head up editorial.
“This is a sad day for those leaving us and Junkee Media. I want to thank the team, both departing and broader, for bringing their passion and talent to work every day,” she said.
“Moving forward, I am confident that a tighter editorial focus will solidify our connection with genuine, niche fandoms in a way that is completely unique in the Australian media landscape. I am proud that we remain fiercely independent, and this new chapter of Junkee will zero-in on the platforms where communities live, and culture gathers.”
Digital publishers have struggled to remain profitable in recent times.
This year, Vinyl Media announced plans to acquire Pedestrian Group and Time Out Australia for “nominal fees”, having already snapped up Val Morgan Digital for $10.5 million.
