What's happening to companies in this industry is no different than what happens in other industries:
- expand too fast during a "bubble" period: suffer serious contraction pains when the bubble bursts, maybe not even survive
- start a new business without a plan or without offering anything unique: fail miserably after the initial honeymoon period that comes from launch
- play fast and loose with the rules: get burned when the authorities come knocking
- operate a business with no risk mitigation plan: get crippled when the risk materializes
- work for the short-term dollar only: inability to adapt to changing business models
- etc.
About a year or so ago, there was an explosion of new networks that popped up due to the low barrier of entry. It's natural that a bunch of them are now failing. That's business.
As an affiliate, you should realize the points I outlined above don't just apply to networks, some of them apply to you as well. If you want to be a successful affiliate for the long term you need to consider those things too.
This is definitely a time of transition in our industry. If you want to survive, you need to do your research, you need to make your plans. Don't just chase the fast money, or you could pay in the long run.