YouTube Creators Turning Streamers
To mitigate their dependency on the platform and its alienating algorithm
Not a week goes by without a headline on YouTube’s streaming dominance as if this was a new trend or something which happened overnight. It’s neither.
Now I get it, the media likes round numbers and YouTube breaking the 10% market-share in August 2024 is sort of a big deal. For far too long, YouTube was dismissed as a video-sharing platform filled with user-generated content. Fine by them, while we looked the other way, they were busy building a global content powerhouse.
What matters more now is how do traditional media and entertainment companies respond to that dominance. While traditional media companies are figuring out where YouTube (and more widely where ad-supported tiers) fits into their wider strategies, YouTube Creators have mastered the platform and are now making their next moves with the launch of their own Creator-led streaming services to mitigate their dependency on this one platform.
At a glance:
Why Build A Creator-Led Streaming Service?
Creator-Led Streamers To Keep An Eye On
Challenges & Opportunities
Why Build A Creator-Led Streaming Service?
Creative Freedom & Control
The YouTube algorithm can leave Creators stuck in a very tight creative space, needed to create the same type of video over and over again to avoid algorithmic or financial consequences.
“We always feel that YouTube forces this dilution of content that pushes us to make what we never intended to do in the first place. As a business you are incentivised to make that type of video again and again and [pushed] away from the ones that are algorithmically punished or financially punished and it’s not a great place to create from. And it’s certainly not the best for our audience.”
Try Guys cofounder Zach Kornfeld in The Publish Press
Sustainable success can also come at a personal cost with more and more Creators experiencing burn out. According to Converkit’s State of the Creator Economy report, 63% of full-time creators have experienced creative burnout in the past 12 months.
Stability & Predictability
Historically, Creators on YouTube have thrived on producing free content supported by advertising (sold by YouTube) then came brand partnerships (through their own teams or via agents). Today, in a quest for more stable and predictable income, many are now building ecosystems that extend beyond YouTube to mitigate their dependency on its algorithm. Format sales like the Mr Beast x Amazon 100M$ partnership (although surely not the headlines Amazon paid for), podcasts, merchandise (Dude Perfect excels at it), live events, social media and paid streaming services all form part of a holistic business model, where each platform reinforces the other. The perfect Creator flywheel.
Quality & Community
A Creator-led streaming service puts making quality content first and deepens the relationship with their communities.
The quality also applies to the viewing experience offered to viewers. They can decide to go ad-free or if they do carry ads, those can be personalised, relevant to the content playing and less intrusive than on YouTube.
“…With the evolution of our content along with the maturation of our fans’ taste, [moving from YouTube to creator-led businesses] feels like the best move — putting the future of our company squarely into a platform that allows us to further our relationship with the people who watch and support us.”
Steven Lim of Watcher Entertainment in Variety
Creator-Led Streamers To Keep An Eye On
For this piece, I listened to many podcasts from YouTube Creators like The Colin and Samir Show and I found it fascinating to hear them and their guests ponder how to make it in the traditional media and entertainment world. It’s the great divide. They want in, we want in.
By launching D2C streaming services, they make their way into our world.
→ Dropout:
A new brand launched by the Creators of CollegeHumor (14.6M YT followers).
Price: 5.99€ (on YouTube), 6.40€ a month or 51.20€/ year (on their website/app). They also sell merch (what’s wrong with me? I want their pin of the month).
3-day trial period (I guess they haven’t read this article on ideal trial length).
Originals like “Dimension 20”, “Um, Actually”, “Game Changer”, “Make Some Noise” with a bi-weekly release schedule.
By the end of 2023, they had around 1M subs. The average Dropout user right now sticks around for a year and a half. 1/3rd of subscribers are annual subscribers.
It says it’s profitable and was able to share profit with its staff in 2023.
See for yourself 👉 http://www.dropout.tv
Read more about them in this interview here.
→ Nebula:
Launched in 2019, Nebula is not an extension of a YouTube channel but rather a network of YouTube channels (Marques Brownlee, Kat Blaque, Lindsay Ellis, Real Life Lore, Wendover Productions, Jordan Harrod etc.) taken to the streaming world. It pitches itself as a creator-build and creator-owned streaming platform.
Between 2019 and 2021, they gained 350K subscribers. In 2023, they had 680K subscribers.
Their annual revenues are estimated to be in the range of $10-15 million annually and come from a combination of monthly and annual subscriptions, as well as partnerships and sponsorships according to their Nebula 2023 Year-End Review.
Priced at 6$/month or 60€/year.
Check it out 👉 https://nebula.tv
→ Ryan and Friends:
Ryan Kaji needs no introduction but in case he does, he became famous on YouTube as he unboxed and reviewed toys.
The brand has expanded beyond YouTube into a movie release this summer, TV shows, merchandise, mobile apps, and even a line of toys sold in major retail stores.
Now, “Ryan and Friends” has a Ryan and Friends Amazon Channel at $3.99 per month. The service is said to have 200K subs with Prime Video US alone.
→ The Try Guys:
A comedy group (8M YT followers) which first gained popularity as employees of BuzzFeed. They became known for their humorous videos where they tried various challenges, often pushing themselves out of their comfort zones.
In 2018, they formed their own production company and in 2024, they launched a streaming service called 2nd Try.
Price: $4.99/month or $49.99/year.
See for yourself 👉 https://www.2ndtry.tv.
Watcher Entertainment, Dude Perfect, the list goes on. TikTok Creators are launching their own services too in a move to prepare for a potential US ban of the app.
Challenges & Opportunities
One of the most valuable assets of Creators is their ability to cultivate deeply engaged communities. Whether it's tech reviews, beauty tutorials, or gaming streams, Creators have an unparalleled understanding of their audience and they are closer to them than any mainstream Streamer will ever be.
This unique insight into content and this rapport with their audience should allow them to create highly specialised subscription services catering directly to their fanbase’s expectations and escape the algorithmic hamster wheel.
YouTube remains their discovery platform while Streaming becomes their relationship platform.
The transition to a paid model presents significant challenges though. Creators must:
→ Convince audiences to pay for something they previously accessed for free;
→ Finesse their production and programming strategy between their free and paid tiers;
→ Grow their distribution network beyond YouTube, a website and an app;
→ Develop the technical infrastructure needed to support a streaming platform. Building, maintaining, and scaling these platforms is no small feat, and many Creators will face the same growing pains as mainstream Streamers in areas such as user experience, content discovery, and retention.
Now is it worth the trouble? 100%.
It’s just the beginning for the Creator Economy with Goldman Sachs estimating the segment will almost double in the next three years (from 250B$ in 2023 to 480B$ by 2027). Their next focus should be platform ubiquity.
Now if I were a mainstream streamer, I’d ask myself: how can I get a piece of that action?
That’s it for today but before you go:
Enjoy your weekend and see you next Friday for another edition of Streaming Made Easy!
Until then, check out Streaming Made Easy on YouTube. In 10 mins or less, I will get you up to speed on a key topic about the European Streaming Video landscape so you can better design and execute your strategy in the region. Check out the 1st videos.
A banger here Marion, reminds me of the article we collaborated on about Kid IP going D2C.