AOL Shuttering Social News Site Propeller

In an announcement posted on their home page last week, social news site Propeller stated that it was shutting down on October 1:

Propeller was created by AOL subsidiary Netscape to compete with social voting giant Digg. Like Digg, content shared on Propeller is voted up or down by other site users; the most popular stories of the moment appear on Propeller's home page. Unfortunately, Propeller failed to achieve Digg's level of popularity and the site has become all but deserted in recent years.

Propeller's shutdown is just another indicator that the social news industry is declining. Even Digg has experienced a 26 percent decrease in traffic since the end of August, according to Hitwise. Many attribute this significant drop in traffic to a widely panned Digg 4, a redesign that launched in August. However, Digg's closest competitor Reddit has experienced a recent boom in traffic. According to Hitwise, visitors are up 15 percent for Redditsince Digg 4 went live.

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