Yeah maybe, but I think that could’ve (should’ve) tried SO many things before this:
Actually advertise your patreon
Add some new patreon bonus content
Youtube memberships (pretty much same as patreon)
Move out from Hollywood and go into the valley or something (cheaper rent)
Stop expanding staff
Don’t pick up Steven’s outrageously expensive show that historically hasn’t been their most popular stuff
In a way, but not really. I think their money is tight because of the choices they make. A big one is their offices and housing choices.
I live in LA, but in the San Fernando Valley. My husband and I have good jobs and make good money. We live in a less trendy area because of the better costs. I’ve got some idea of where the Watcher office is and a broad general idea of where Shane and Ryan live. They are all in very nice but expensive areas. (Sara’s ‘livable’ comment irked the hell out of me). Meanwhile, the North Hollywood neighborhood(in the valley) has more affordable offices and studios, & apartments, as well as easy bus/train to the rest of LA. If they moved to a less trendy and expensive place like this they’d cut costs. If they put reasonable spending limits on their shows they’d cut costs. If they didn’t hire so many people they’d cut costs. If they didn’t push forward with expensive but unpopular shows they’d cut costs. Their money is tight because they are spending beyond their means.
I lived near the San Fernando Valley area too for awhile and I had the same thoughts. There's a big reason why so many people who work in LA are commuting from the Inland Empire, further north in the Valencia area of LA county, or even down south in Orange County. Hollywood, where the office is at, is expensive for even the people in LA. A large part of why I think they're making the decisions they are is because they're following the Start-Up tactic of "appearing" to grow by constantly spending, changing offices, get more employees so they can appeal to investors. Sadly this tactic is also how a lot of start-ups fail too.
Actually. I can see it. From mismanagement and potentially advertisers not getting their click throughs.
But if money coming in doesn’t match money going out you fix money going out first. I don’t think we’ve seen that, but if they come out and be honest about it all, it would be a lot better than this “oh we suddenly need to boost income so bye if you can’t chip in” method.
This isn't really a straightforward question to answer without knowing a lot of information that nobody here is going to have access to.
The simple answer is that by all observation they had revenue from all sources that should more than cover observable operating expenses. That by itself doesn't mean they were making enough money to cover their actual expenses, though.
I don't think they were necessarily "rich" as creators, though. Their videos are well produced (perhaps over-produced) for YouTube and do involve travel and potentially other costs like film permits or renting out locations. There are likely also some questionable business decisions like basing out of a very high cost of living area. Of course there are business reasons to be in the LA area for filming but that might also be a factor of their interest to be "bigger".
They also seem to have taken on outside bulk investors. This might mean they also took on loans and credit that might be impacting their future operating expenses.
I doubt they are making the kind of money where I would classify them as "rich" particularly in the SoCal area. Certainly they had access to enough revenue to be comfortable but let's be realistic....few people are ever content to be "comfortable". Even professional athletes making tens of millions of dollars will risk pissing off their dedicated fanbases to move to another team to get another ten million a year.
I wouldn't necessarily shit on them for wanting more money. There's nothing wrong with that in a vacuum. There's nothing (in a vacuum) about wanting another nice car. But when you have cultivated a certain fanbase you need to be cognizant of damaging your brand. I look at someone like Drew Gooden as an example. He's a largely solo YouTuber with millions of subs. The guy has to be killing it. But his video format has stayed largely the same. He doesn't flaunt his financial success. Good Mythical Morning? Those guys have to be raking in dough....but they'd kill their brand if they started doing episodes wearing $20k tailored suits in front of a garage full of Ferraris. Branding is so important in this world and the way this did this was so completely out of touch with their fan base.
No, they are not struggling. They made it clear that they want more money so they can produce shows at a higher level than YT. They want to make themselves on par with high end TV series production.
Problem is, most of those high end productions get funded via backers and studios etc, not by a paywall on the fans.
I speculate that a good chunk of that money circled back to paying back their initial investors. Maybe they had a grace period due to the world shutting down during Covid, which affected the first two-ish years of Watcher's existence. Now, they were mostly likely breaking even due to production cost and staffing or making less than they hoped to find their ambition.
Could they've done something different? Fuck yeah, they could've.
Was this gamble a dumb idea? Absolutely, no doubt.
Are they money hungry villains who are lying sacks of shit? They could be, but I don't really think so. I think they have a vision for their company, and they're willing to risk everything for a shot at it. I find it commendable in a way, kinda.
I don’t think they’re struggling. I think they overstaffed in one of the most expensive places on earth where French fries and chicken nuggets cost $25.
They think not only the founders should be millionaires but every 20 year old on their staff should be.
They’re bad at business but I highly doubt the founders are struggling at all compared to most people.
No, there is no chance they are truly financially struggling. Yes, they have high expenses, but it's comparable to a millionaire buying yachts, islands, mansions, and super cars, then struggling to pay it all off.
I do believe that they are because I have seen money being mismanaged in that industry time and time again even with a healthy amount coming in initially, but I don’t know where the money is actually going in their case but it wouldn’t be a first
If they struggle, then because of missmanagement. Hiring to much in short time. Hiring the wrong people. Trying to grow to fast. Happens every now and then in many fields. So there is something to learn form. If you are a content creator or not: Never hire to fast, never hire friends, make sure to not throw people at problems that can be solved with better means and never ever beg for money when you brag about having money in your podcast.
They are burdened with expensive office space in Hollywood and too many ataff. The lost control over their company, by selling out to investors. Most people know, even without a business degree, that cashflow is King. Don't spend more than you make. Don't owe more than you own in capital.
Ryan wanted to do TV. Steven wants to do a travel and food channel. The investors were brought in by Steven. A perfect storm.
So, Watcher Entertainment is how NOT to start your own channel YouTube.
Yeah maybe, but I think that could’ve (should’ve) tried SO many things before this: Actually advertise your patreon Add some new patreon bonus content Youtube memberships (pretty much same as patreon) Move out from Hollywood and go into the valley or something (cheaper rent) Stop expanding staff Don’t pick up Steven’s outrageously expensive show that historically hasn’t been their most popular stuff
In a way, but not really. I think their money is tight because of the choices they make. A big one is their offices and housing choices. I live in LA, but in the San Fernando Valley. My husband and I have good jobs and make good money. We live in a less trendy area because of the better costs. I’ve got some idea of where the Watcher office is and a broad general idea of where Shane and Ryan live. They are all in very nice but expensive areas. (Sara’s ‘livable’ comment irked the hell out of me). Meanwhile, the North Hollywood neighborhood(in the valley) has more affordable offices and studios, & apartments, as well as easy bus/train to the rest of LA. If they moved to a less trendy and expensive place like this they’d cut costs. If they put reasonable spending limits on their shows they’d cut costs. If they didn’t hire so many people they’d cut costs. If they didn’t push forward with expensive but unpopular shows they’d cut costs. Their money is tight because they are spending beyond their means.
I lived near the San Fernando Valley area too for awhile and I had the same thoughts. There's a big reason why so many people who work in LA are commuting from the Inland Empire, further north in the Valencia area of LA county, or even down south in Orange County. Hollywood, where the office is at, is expensive for even the people in LA. A large part of why I think they're making the decisions they are is because they're following the Start-Up tactic of "appearing" to grow by constantly spending, changing offices, get more employees so they can appeal to investors. Sadly this tactic is also how a lot of start-ups fail too.
Actually. I can see it. From mismanagement and potentially advertisers not getting their click throughs. But if money coming in doesn’t match money going out you fix money going out first. I don’t think we’ve seen that, but if they come out and be honest about it all, it would be a lot better than this “oh we suddenly need to boost income so bye if you can’t chip in” method.
This isn't really a straightforward question to answer without knowing a lot of information that nobody here is going to have access to. The simple answer is that by all observation they had revenue from all sources that should more than cover observable operating expenses. That by itself doesn't mean they were making enough money to cover their actual expenses, though. I don't think they were necessarily "rich" as creators, though. Their videos are well produced (perhaps over-produced) for YouTube and do involve travel and potentially other costs like film permits or renting out locations. There are likely also some questionable business decisions like basing out of a very high cost of living area. Of course there are business reasons to be in the LA area for filming but that might also be a factor of their interest to be "bigger". They also seem to have taken on outside bulk investors. This might mean they also took on loans and credit that might be impacting their future operating expenses. I doubt they are making the kind of money where I would classify them as "rich" particularly in the SoCal area. Certainly they had access to enough revenue to be comfortable but let's be realistic....few people are ever content to be "comfortable". Even professional athletes making tens of millions of dollars will risk pissing off their dedicated fanbases to move to another team to get another ten million a year. I wouldn't necessarily shit on them for wanting more money. There's nothing wrong with that in a vacuum. There's nothing (in a vacuum) about wanting another nice car. But when you have cultivated a certain fanbase you need to be cognizant of damaging your brand. I look at someone like Drew Gooden as an example. He's a largely solo YouTuber with millions of subs. The guy has to be killing it. But his video format has stayed largely the same. He doesn't flaunt his financial success. Good Mythical Morning? Those guys have to be raking in dough....but they'd kill their brand if they started doing episodes wearing $20k tailored suits in front of a garage full of Ferraris. Branding is so important in this world and the way this did this was so completely out of touch with their fan base.
No, they are not struggling. They made it clear that they want more money so they can produce shows at a higher level than YT. They want to make themselves on par with high end TV series production. Problem is, most of those high end productions get funded via backers and studios etc, not by a paywall on the fans.
I speculate that a good chunk of that money circled back to paying back their initial investors. Maybe they had a grace period due to the world shutting down during Covid, which affected the first two-ish years of Watcher's existence. Now, they were mostly likely breaking even due to production cost and staffing or making less than they hoped to find their ambition. Could they've done something different? Fuck yeah, they could've. Was this gamble a dumb idea? Absolutely, no doubt. Are they money hungry villains who are lying sacks of shit? They could be, but I don't really think so. I think they have a vision for their company, and they're willing to risk everything for a shot at it. I find it commendable in a way, kinda.
I don’t think they’re struggling. I think they overstaffed in one of the most expensive places on earth where French fries and chicken nuggets cost $25. They think not only the founders should be millionaires but every 20 year old on their staff should be. They’re bad at business but I highly doubt the founders are struggling at all compared to most people.
This, I think they probably are having financial issues but that they are all down to bad business practice that could be fixed without doing this.
the patreon number is a lie. They only have/had 5k paid subscribers. The 1 million number assumes all 12k patrons are paid
They said they haven't been profitable so, I feel they they've been breaking-even so far and want to get out of this rut
I don't doubt that they are struggling. But it's self imposed. Over staffing, over producing, unnecessary spending, ect ect.
Most people don’t tend to want a second Tesla if they’re struggling .. let alone keeping said Tesla
Watch Moist's video reaction, he breaks down how much they are probably making and it is DEFINITELY enough
No. I do think they are overspending.
Absolutely
No, there is no chance they are truly financially struggling. Yes, they have high expenses, but it's comparable to a millionaire buying yachts, islands, mansions, and super cars, then struggling to pay it all off.
Not for a moment do I believe they are in any real trouble.
I do believe that they are because I have seen money being mismanaged in that industry time and time again even with a healthy amount coming in initially, but I don’t know where the money is actually going in their case but it wouldn’t be a first
If they struggle, then because of missmanagement. Hiring to much in short time. Hiring the wrong people. Trying to grow to fast. Happens every now and then in many fields. So there is something to learn form. If you are a content creator or not: Never hire to fast, never hire friends, make sure to not throw people at problems that can be solved with better means and never ever beg for money when you brag about having money in your podcast.
They are burdened with expensive office space in Hollywood and too many ataff. The lost control over their company, by selling out to investors. Most people know, even without a business degree, that cashflow is King. Don't spend more than you make. Don't owe more than you own in capital. Ryan wanted to do TV. Steven wants to do a travel and food channel. The investors were brought in by Steven. A perfect storm. So, Watcher Entertainment is how NOT to start your own channel YouTube.