Crowdfunding Site Patreon Acquires the Vlogbrothers’ Subbable
Crowdfunding site Patreon has acquired crowdfunding site Subbable so that creators benefitting from the latter wouldn’t have to see a decrease in revenue due to Amazon Payments changes, according to Patreon’s blog.
Created by Hank and John Green (aka, the Vlogbrothers), Subbable offers a way for YouTube creators to fund their content by enlisting the support of their fans. The platform allows fans to subscribe to creators and offer to pay a certain amount per month, in exchange for the content they love as well as various parks established by the creator. In terms of the nitty-gritty, the transactions on Subbable, up until recently, were processed via Amazon Payments.
With recent changes at Amazon, creators making money through Subbable would lose 30% to 40% of their monthly income. Thus, Patreon purchased Subbable, with most of the money from the deal going to video creators on the platform.
Deemed the “matching program,” it entails $100,000 from Patreon going into creators’ pockets so that Patreon can “match” what creators would have been making on Subbable before Amazon Payments’ system changes. This is meant to incentivize Subbable users to migrate over to Patreon, because they’ll get paid even if their subscribers don’t make it over to the other crowdfunding site within the first month of the takeover.
No specific sum of money other than the $100,000 going to creators was specified in the acquisition, though Patreon co-founder and CEO Jack Conte explained, “Most of the money that Patreon is spending on this acquisition is going to the matching program.”Tags: Acquisitions, Amazon, amazon payment, crowdfunding, Hank Green, Jack Conte, John Green, Patreon, Subbable, The Vlogbrothers, youtube, YouTube Creators