With creator entrepreneurialism at an all-time high, more YouTube channels turned media companies have been exploring how to bulk up monetization and maintain control over their content by offering paywalled extras to fans. But going off-platform, away from things like YouTube’s Channel Memberships and Patreon’s monthly subscriptions, isn’t easy.
Especially when you’re trying to design an entire custom streaming service.
That’s the problem Dropout faced. In 2020, the digital comedy brand–at that point called CollegeHumor, with a streaming service component named Dropout–was cut by its corporate owner, IAC/InterActiveCorp. Then-Chief Creative Officer Sam Reich bought it, and as he prepared for a revamp urged
fans to stay subscribed to Dropout, calling it “the #1 way you can support me.”Now, five years later, Reich is CEO, Dropout has 15 million subscribers on YouTube with successful shows like Dimension 20 and Game Changer, and it has a custom streaming service powered by Vimeo‘s latest product, Vimeo Streaming.
Vimeo Streaming debuted to the public earlier this month, but it’s already been used by major creators: Dropout, the Try Guys (who used it to build their service 2nd Try), and the Sidemen (who built Side+), to name a few. Vimeo’s tagline for the product is that it allows creators to “build your own Netflix-style streaming service,” complete with robust video hosting/playback tools and monetization.
So far, Vimeo Streaming has been used to launch more than 5,400 apps, which have collectively attracted 13+ million subscribers and generated nearly $430 million in annual revenue for creators.
For Dropout, Vimeo Streaming was what it needed to build the kind of subscription service that would suit its dedicated fanbase.
“We’re a creative team, not a tech company,” it tells Tubefilter. “Building and maintaining a custom platform, especially with apps across multiple devices, was an incredibly expensive and a high liability venture that was only an option for us when we were fully owned by IAC–and even then, we didn’t have the scale to afford to build a platform robust enough to suit the needs of subscribers.”
With Vimeo Streaming’s tools, though, Dropout has been able to build, maintain, and monetize a service that can handle all of its subscribers watching hundreds of episodes of content. Vimeo handles the service’s infrastructure, plus customer support and troubleshooting tickets. Not having to manage the technology is “a huge relief,” Dropout says. “The less we have to worry about the technology behind our platform, the more time we have to focus on the content we’re making. Seriously, the stability and reliability have been incredibly helpful.”
Using Vimeo Streaming has also helped Dropout keep the service’s price low; it has raised the monthly cost just once from the original $5.99 to $6.99.
“It’s been such a monumental shift for our business, and one that’s allowed us to grow and strategize in ways we never could have before,” Dropout says. “We are no longer beholden to social media algorithms and inconsistent ad revenue.”
On that topic, it says that the rise of TikTok and YouTube Shorts have been “a nightmare” for its business. “Short-form vertical video ad units are still in their infancy, and if you think YouTube Shorts can replace the ad revenue you were making on traditional longer-form YouTube videos, think again,” it says. “Unfortunately for the folks who rely on that ad revenue, everything is shifting in this direction.”
Having its own streaming service is helping Dropout compensate for short-form’s impact.
“We also have a direct relationship with our audience, and never have to compromise on our content to please advertisers,” it notes, adding that the relationship with its audience is “night and day” from YouTube to the Dropout service. “On platforms like YouTube, you’re competing for attention in a sea of content. With our own service, we’ve created a dedicated space for our fans, where we’re not in competition with every other content creator in existence. They’re here because they specifically want Dropout content, and that fosters a much deeper sense of connection. We can engage with them directly and cultivate an experience just for them that just isn’t possible on larger platforms.”
All this being said, Dropout is honest in saying that Vimeo Streaming is “not for everyone.” But perhaps not for the reasons you think.
“You need to have a lot of faith in yourself, in your content, and in your audience’s willingness to follow you to your own platform. But if you have all those things, we recommend giving it some real consideration,” it says. “Being able to break free of the constant grind and pivoting of algorithmic platforms, changing advertiser rules and rates, and the constant uncertainty about how your next video’s going to perform is a dream come true.”
Creators interested in launching their own services can check out why the folks behind brands like Dropout chose Vimeo Streaming here.
Vimeo is a Tubefilter partner.
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