What’s behind TheStreet’s strategy shift

Max Willens of Digiday writes about the change in focus at TheStreet.com after it laid off 10 employees last week.

Willens writes, “TheStreet’s hunt for consumer revenue comes at a moment when newsroom morale is at its nadir after years of layoffs and a perceived lack of clear editorial direction, according to some of the former employees. Insiders criticized what they saw as top executives going with the wishes of the company board. This story is the result of conversations with five former employees with direct knowledge of TheStreet’s editorial operations. TheStreet’s press contact did not respond to requests for comment.

“‘This decision came down from the board,’ one former employee said. ‘An edict came down, and everyone is trying to figure out how to translate it.’

“With the subscriptions push, TheStreet is retrenching around its core. The company’s revenue was essentially flat at $15.3 million in the third quarter, roughly half and half coming each from business-to-business and business-to-consumer revenue. Most of TheStreet’s consumer revenue comes from subscriptions to Cramer’s paid newsletter — subscription revenue accounted for $4.9 million of $7.4 million in B2C revenue in the third quarter, according to a company filing.”

Read more here.