Random Thoughts – Randocity!

How not to run a business — Case Study: Tumblr

Posted in botch, business by commorancy on December 3, 2018

tumblr-logoToday, Tumblr announced that on December 17th, 2018, it will be removing and banning all “Adult” content on its site. I’m going to call it. This is the death knell that will almost assuredly see to Tumblr’s demise in less than 1 year. Let’s explore.

Tumblr and Adult Content

Tumblr started out as a kind of web blogging platform where users could share various content of any variety. Pretty quickly, adult content began to fill the pages of Tumblr. Adult content included naked people posing alone or performing sex acts with others. Whatever the imagery, it actually became a staple of Tumblr as a platform… and ultimately the Tumblr platform became known for its adult content.

The difficulty with not clamping down on adult content early in the life of Tumblr meant that Tumblr management and staff were okay with Tumblr being used to host adult content. If they had nipped this content type early in the life of Tumblr, we wouldn’t be in the dilemma that Tumblr currently faces.

Every platform has to make a decision early in its life about whether adult content is okay or not, particularly with sites that allow User Generated Content (UGC). When you create a UGC platform, you have to make the decision about adult content early and swiftly. If you don’t make this choice early and seal the deal in the Terms and Conditions agreement, your users will use the platform for adult content.

Knee Jerk Reactions

Even though Tumblr’s app was delisted by Apple in late November due to a case of child pornography appearing on a Tumblr page, it’s also crystal clear that the management team at Tumblr is entirely out of touch with exactly how Tumblr is used. Of course, now that Verizon owns Tumblr, they’re probably okay with taking the hit at losing better than 90% of their viewing traffic by making this knee jerk decision. Unfortunately, after the adult dust settles out of Tumblr, there won’t be much of a platform left to see or explore. Tumblr’s claim to fame was its adult content. Without it, this platform is dead. D.E.A.D! Tumblr, for better or worse, was really one of the few goto places for adult content. The Internet knew this. Tumblr really has no use as a G-rated platform. Too many other platforms fill that gap much better, including Pinterest and WordPress and Medium. No, the executives left at Tumblr really don’t seem to understand that Tumblr’s value as a platform was its adult content. Removing that content, you remove Tumblr’s value to exist as a site.

In reality, Verizon would do better to simply shutter Tumblr entirely… because effectively that’s what they are doing on December 17th. There’s literally no reason to go to any sites left on Tumblr once the adult content is removed. Those few G-rated sites left would also do better to move their content to a different platform such as Deviant Art, Medium or WordPress. The fallout from this change will be swift and immediate.

Chasing Page Owners Away

What’s worse in this situation is that non-adult content owners on Tumblr might have to move their content anyway. Many artists use the platform to host their art. Yet, Tumblr robots have been running around classifying their artwork as adult, even when it isn’t. This problem is likely intended to chase away not only those pages classed as ‘adult content’ but also those who don’t actually post adult content. Ultimately, whatever few sites are left after this shakeout means effectively a danger to those legitimate page owners left in the shambles of the former Tumblr. What drove traffic to Tumblr was its adult content, not the g-rated content. When all of that adult content is gone and most of Tumblr’s revenues are missing in action, legitimate content sites will now be in jeopardy because of the tenuousness of the Tumblr platform.

If you are a g-rated content owner on Tumblr, you should seriously consider moving your stuff somewhere else in the wake of this huge platform mistake. You don’t want to be doing this under a deadline in six months because Tumblr is about to close. Do it now while you have plenty of time. Removal of adult content is a mistake anyway you slice it and it is why this is appearing as a case study in the How not to run a business series.

I understand the issue for Verizon. Having worked for Verizon in the late 90s, I am fully aware of just how much of a conservative organization Verizon really is. It’s actually surprising this change wasn’t made sooner to Tumblr. So, I fully understand this knee jerk reaction of Tumblr being delisted from Apple’s App store over child pornography content. At the same time, making this knee jerk reaction by removing all of Tumblr’s adult content is a severe mistake for this platform.

Tumblr would do better to split its platform in two. Create Tumblr Adult and leave Tumblr for the G-rated stuff. Then, cordon off Tumblr Adult for those sites that fall under adult content. Then, hire mods to police the content on Tumblr Adult more closely to prevent child pornography content.

Compensating Controls

Typically, if you decide to make a rash decision about a platform, you must also introduce something to compensate for that rash decision. Removing the adult content kills many people’s reason’s to visit (or use) Tumblr at all. Take away that reason and you get far fewer visitors. Visitors that drive revenue into your site. Take away those visitors and you’re paying to host a site that makes you no money. In other words, it becomes a money losing proposition. For Verizon, it might be willing to soak up these losses for a short time, but there’s no way Verizon will allow a money pit to remain active for very long.

With the introduction of this new policy, it appears Tumblr isn’t implementing anything to make up for the loss of that adult traffic. Oh, well. It’s the death of Tumblr.

Ultimately, I predict no more than six months for Tumblr after December 17th and then the entire site will shutter to be heard from no more. Verizon might allow the site to continue operations longer than six months if they’re complacent. However, keeping a money sucking site open is not likely to go over well with Verizon management for very long. It’s almost a guarantee that Tumblr cannot survive on its G-rated content alone when other sites do this piece so much better.

Soooo…. Buh Bye, Tumblr.

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