Media and entertainment industry, globally, operate differently thanks to technology, which makes the growth of these 5 entertainment start ups admirable as they have continued to scale up their user base since their inception.
Technology has changed the landscape for the entertainment and media industries globally. In the information-led world, competition among providers of content is increasing daily. Let us look at the 5 most successful entertainment startups that revolutionised the digital content space and have a huge number of user base that is only increasing since their inception.
Patreon: Patreon is a subscription-based crowdfunding membership platform that allows fans of a creator’s work to support them by subscribing to their work and paying a subscription fee. It was founded in 2013 by Jack Conte and Sam Yam.
Patreon changed the game and let artists and content creators leverage their user base to generate income. Patreon has been successful with over 250,000 creators supported by more than 8 million patrons, and creators have earned over $3.5 billion dollars. Patreon is one of the leading crowdfunding platforms for entertainers, content creators, and artists, allowing them to earn additional income through their subscriber base. Patreon charges a commission of 9 to 12 percent of creators’ monthly income, in addition to payment processing fees.
Pluto Tv: Pluto TV is a free ad-supported streaming television (FAST) service that offers a wide range of content through digital linear channels that emulate the experience of traditional broadcast programming. Pluto TV was founded in 2013 by Tom Ryan, Ilya Pozin, and Nick Grouf. It operates and generates revenue through an advertisement-based model, also known as AVOD (Advertising Video on Demand).
Pluto TV has since become one of the leading over-the-top streaming platforms, with over 43.1 million subscribers in 2020. Pluto TV brought in more than $1 billion dollars in revenue, an achievement that is at par with Paramount’s paid streaming service and reported 4.8 billion total viewing hours across the year. In 2022, the revenue almost doubled, reaching $2.77 billion, having a growth of over 100% compared to the previous year.
Twitch: Twitch is a live streaming platform focused on video games that has grown into a community of like-minded individuals who are passionate about topics such as a particular video game.
Twitch was founded in 2011 as a spin-off of the general interest streaming platform Justin.tv by Justin Kan and Emmett Shear. Twitch grew popular rapidly among users and in the year 2013, the number of monthly viewers had more than doubled from the previous year to a staggering 45 million. In 2014, Amazon acquired Twitch for $970 million, which helped to further accelerate its growth.
The platform generates revenue by charging users a monthly subscription fee, through its own digital currency called Bits, and by selling merchandise. Twitch has become a popular platform for esports tournaments, personal streams of individual players, and gaming-related talk shows.
Substack: Substack is an email newsletter platform that allows writers to monetise their content by offering exclusive newsletters to their subscribers. Substack was founded in 2017 by Chris Best, Jairaj Sethi, and Hamish McKenzie.
The platform also offers additional features, such as podcast support and the ability to publish posts on the web. Substack provides web and newsletter publishing tools that are purpose-built for paid subscriptions.
This platform allows writers to choose, each time they publish a post, if the post is free for everyone or only for paying subscribers. Substack was designed with the intention of helping writers build a direct relationship with their readers and retain full control over their creative work.
Mubi: Mubi is a global streaming service, production company, and film distributor dedicated to elevating great cinema. Mubi was founded by Efe Çakarel. The founder was inspired to create the platform after being unable to watch In the Mood for Love online while in a café in Tokyo. Mubi also offers community features that allow users to share their passion for film and connect with others who love cinema. Mubi’s library features a new film every day, hand-picked by its curators, and offers editorial coverage of what’s new in cinema culture with its Notebook. Mubi primarily generates revenue through a subscription-based model. As of 2023, Mubi had over 10 million registered users worldwide. Mubi also generates revenue through advertising partnerships and merchandise sales.
AI is set to change the distribution of content globally. The entertainment and media industry are constantly evolving, with a burgeoning consumer base, consumer preferences are also changing, and consumer behaviors are the key to driving innovation and growth in the entertainment and media industry. Companies that are able to adapt to these changes and provide personalised, engaging experiences are likely to succeed in the coming years.
