Axios slows its local expansion
Hi there,
Last week, we learned that Axios Local will pause expansion after launching its 30th city later this summer.
Axios’ chief business officer Fabricio Drummond explained the decision by saying the company plans to “unlock a more substantial presence in [existing] markets before further expansion.” Axios Local is not currently profitable, according to Adweek.
Drummond also shared revenue and audience data on Axios Local:
2021: 14 markets; ~$4 million in revenue; $286k revenue per market
2022: 24 markets; $8.6 million in revenue; $358k revenue per market
2023 (to date): 29 markets; $7.5 million in revenue; likely on pace for slight growth in revenue per market
It’s impressive progress. 1.55 million newsletter subscribers, or about 50K per market, is strong evidence that their local newsletters have product/market fit. Financially, it’s encouraging that Axios Local is growing average revenue per market, suggesting they’re scaling a mix of sponsorship, membership, and events revenue in more mature markets.
One key question is whether leadership can protect the project internally during this period, particularly after Axios was acquired by the cable giant Cox Enterprises last year. To that end, it’s discouraging that Axios Local’s general manager Ted Williams stepped back into an advisory role earlier this year. Williams is also the founder of The Charlotte Agenda, which was acquired by Axios in 2021 and provided the company with both a local beachhead and playbook.
Now, with expansion paused, the team can refocus on growing subscribers and tailoring their monetization playbook in existing markets. With enough patience and operational discipline, profitability and growth to additional markets are likely within reach.
Here’s the latest news in digital media:
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More on publishers:
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More on platforms:
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Twitter introduced a new Pro tier for its API that costs $5,000 per month.
Elon Musk cut the Twitter Spaces team from around 100 to roughly three people.
Bluesky now lets users choose their own algorithms, known as “custom feeds.”
More on AI:
58% of US adults have heard of ChatGPT, but only 14% have actually tried it, according to a new Pew survey.
According to a different survey, 85% of American workers have used AI to perform tasks at their job.
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