Can You Actually Support This Podcast On Patreon? (w/Penny Fractions)
Nov 21, 2023
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The podcast discusses Patreon's financial struggles and its role in the music industry, as well as the impact of battle passes on video game players. It explores the sustainability of Patreon, technological advancements, and the pandemic's impact on projects and trends.
The subscription model of platforms like Patreon may have limitations in sustaining a diverse music community due to challenges such as plateaued growth and the zero-sum nature of subscriptions.
The subscription model in music fandoms can restrict fans from engaging with multiple artists, hindering the potential for building a thriving music community, and the lack of network effects further hinders the organic growth of music fandoms and discovery of new talents.
Deep dives
The Rise and Fall of Patreon: A Financial Support Platform for Creators
Patreon, initially created as a substitute for monetized YouTube streaming, experienced a boom during the early days of the pandemic. The platform allowed creators to directly receive financial support from their audience through monthly subscriptions. However, as people began to return to live events and other forms of entertainment, the subscription model faced challenges. Patreon's growth plateaued in early 2021, indicating that the model may have limitations in sustaining a diverse music community. Furthermore, Patreon's lack of network effects and the zero-sum nature of subscriptions made it difficult for new artists or projects to gain traction on the platform. The future of subscription-based platforms like Patreon in the music industry remains uncertain.
The Challenges of the Subscription Model for Music Fandoms
The subscription model, while successful in platforms like YouTube and gaming, presents unique challenges for music fandoms. Unlike other forms of culture, music fandoms tend to be more exclusive, with fans typically dedicating their support to a specific artist or band. The subscription model, which requires ongoing financial commitments, can restrict fans from engaging with multiple artists due to financial constraints. This limits the potential for building a thriving music community within a subscription-based platform. Additionally, the lack of network effects in platforms like Patreon further hinders the organic growth of music fandoms and discovery of new talents.
The Question of Sustainability for Subscription-Based Platforms
The sustainability of subscription-based platforms like Patreon raises concerns about its future viability as a support model for creators. The Patreon model heavily relies on a large number of subscribers to generate significant revenue, but often results in a disproportionate distribution of income, with only a few top creators earning substantial profits. Furthermore, the subscription model may not create the same level of cultural moments or excitement as traditional album releases or live shows. This limitation, coupled with the increasingly competing modes of consumption and entertainment options, makes it challenging for Patreon and similar platforms to scale sustainably in the music industry.
The Impact of the COVID-19 Pandemic on Subscription-Based Platforms
The COVID-19 pandemic played a significant role in the surge of subscription-based platforms like Patreon. During the pandemic, supporters sought ways to directly support their favorite creators, leading to a boom in subscriptions. However, as the world slowly returns to normalcy, the subscription model's appeal diminished, as fans had to compete with other forms of entertainment and expenditures, such as live events and experiences. This slump in growth experienced by Patreon highlighted the challenges of maintaining momentum and sustaining interest in subscription-based platforms during and after the pandemic.
This time Sam and David Turner dig into the financially rocky patch in which Patreon—the name that launched a thousand podcasts—has recently found itself. Looking at the longer trajectory of the fan-funding platform, they try to piece together how it moved from a replacement for YouTube ads to a supposed panacea for the value collapse of musical (and cultural) production—and try to understand the broader implications of the division it (implicitly) draws between the filthy-lucre of commerce and the pure connection of community. Come for Sam not knowing the basics of indy-streamer cultology. Stay for the fundamental question of whether fandom is a zero-sum game.
