Hit the Ground Running How Dropout competes in a cutthroat, subscription-streaming market
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Jun 5, 2024 
Sam Reich, CEO of Dropout and former CollegeHumor leader, discusses the platform's successful transition to a subscription model after struggling for years. He shares insights on acquiring the company for $0, and achieving profitability by focusing on low-cost, improv-style content and leveraging social media for audience growth. Reich highlights the balance between launching new shows while maintaining quality, the importance of nurturing talent, and how niche series like Dimension 20 have gained mainstream appeal, showcasing Dropout's innovative approach in a competitive market.
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Niche Subscription-First Model
- Dropout operates as a niche, subscription-first comedy streamer with $5.99/month or $60/year pricing.
- They avoid third-party licensing and wider distribution to focus on owned content and control.
Repeated 'Get-Rich' Attempts
- Sam Reich recounts IAC's long history with CollegeHumor and repeated attempts to 10x the company.
- Those attempts included ad sales, TV deals, and other short-lived initiatives before subscription became the focus.
Buying The Company For $0
- Sam describes buying CollegeHumor from IAC for effectively $0 while IAC retained a minority stake.
- He signed the deal just before the COVID-19 lockdown with only a tiny retained team and some banked content.