With the first trend, readers' attention is flowing from print to desktop to desktop plus smartphone/tablet, forcing old news organizations to chase us onto smaller screens with cheaper ads and tougher paths to profit, as the (very general, but very compelling) graph below illustrates.
The second trend is the "sharing economy" of links on the Web. To a degree that might be unappreciated for people who don't work in journalism, traffic for the vast majority of sites is overwhelmingly dependent on readers sharing our stories: on Facebook; on Twitter; on editorial communities like Reddit and LinkedIn and Hacker News; and on email/chat/dark social. Unless you are one of a handful of destination sites -- the New York Times, the Huffington Post, Yahoo News -- with homepages that push traffic like fire hydrants push water, this social web is your most important source of clicks.
With the advantage of hindsight, it seems The Daily made two fundamental, conceptual errors. First, it built an expensive, subscriber-only newspaper that cost $30 million a year in a weak U.S. economy, in a weak publishing industry, in a troubled News Corp company that is taking its best cross-subsidy for expensive journalism -- its booming TV/movie/video-entertainment business -- and turning it into a separate company, called Fox Group.