Symbolizing the dramatic change of fortunes in the broader digital content ecosystem, editorial staffers at Insider – the global news publication and parent company of popular outlet Business Insider – have gone on strike, according to The Wrap. Central to the discontent is the company’s healthcare plan.

In a social media post, the Insider union stated that over 250 employees now stand on an indefinite strike as of midnight June 2. Along with the unfair labor practice associated with the troublesome healthcare plan, the organization also cited a lack of fair monetary compensation.

Previously, the union voted on May 24 to authorize a strike if discussions with management failed to yield constructive results on or before June 2.

While Hollywood's entertainment writers have garnered most of the headlines as the Writers Guild of America strike goes into its second month, the striking staff at Insider are not the only journalists heading to the picket lines. Hundreds of staffers at Gannett newspapers across seven states are set to walk off the job next week to call attention to budget cuts and to pressure shareholders ahead of a vote on executive pay at a meeting Monday, The Washington Post reported on Thursday.

Meanwhile, this week, the Guild has targeted shareholders of Netflix (US:NFLX) and Comcast (US:CMCSA), seeking investors' rejection of pay hike for those media companies' top executives in like of the strike. Since the walkout began in early May, NFLX stock is up almost 27% while CMCSA stock is down 5.2%.

High Costs, Bad Coverage

Earlier on Thursday, the organized labor group detailed the key issues it had against Insider, which included management allegedly changing the company’s healthcare plan “without bargaining with us.” As well, it blasted the media giant for “saddling us with higher costs and worse coverage.”

In addition, the union brought specific (and shocking) figures to the table, stating that some employees incurred healthcare cost increases to the tune of more than 1,000%. Further, one asthma-suffering union member provided testimony that under Insider’s new health plan, it would only cover a limited number of inhalers annually.

Pressed for commentary, Insider has been relatively quiet. However, the company issued a statement on Wednesday, with Insider spokesperson Mario Ruiz saying, “[w]e are actively engaged with our union team, which we have great respect for. Our goal remains the same: to agree to the best possible contract that works for the whole company.”

For Insider, the contentious matter represents a comprehensive reversal of fortune. Back in early 2021, The Wall Street Journal pointed out that amid the onset of the COVID-19 pandemic, Business Insider co-founder Henry Blodget convinced the company’s owner, German media conglomerate Axel Springer SE, to simply do nothing and ride out the cacophony.

Surprisingly, it worked, with Insider and related properties catalyzing a massive turnaround in the second half of 2020. Eventually, the enterprise posted revenue growth of 30% for that year while also turning a profit.

Nevertheless, the unique impact of the COVID-19 crisis – which saw millions of white-collar workers operate remotely – may have conflated fortuitousness with the supposed viability of Insider’s higher-premium direct-sold ads.

Digital Ad Weakness

Indeed, from 2022 to the present juncture, internet tech giants such as Alphabet (US:GOOG, US:GOOGL) and Meta Platforms (US:META) admitted to significant weaknesses in the digital advertising ecosystem.

As CNN Business mentioned, much of the advertising downturn stemmed from shrinking corporate budgets. In addition, as COVID mitigation protocols lessened, consumers weren’t plugged into their screens with the same intensity as during the peak of the pandemic, when few entertainment options existed.

With content engagement statistics reverting to the mean, several media outlets found themselves laden with excessive obligations. Perhaps most notably, BuzzFeed (US:BZFD) shut down its Pulitzer Prize-winning news division as part of its headcount reduction, which impacted 15% of its workforce.

Still, one potential bright spot for the Insider union is the ongoing Writers Guild strike. According to The Hollywood Reporter, the Hollywood writers’ “shut-it-down strategy” has been effective, citing Hollywood executives private concessions. Therefore, a concerted and sustained effort may see a breakthrough for the editorial staffers, perhaps presenting significant implications for other media outlets.