Small Streamers, Big Business: Inside Fandom-Backed Growth and Industry Infiltration at Dropout, Nebula and Critical Role’s Beacon

As a lifelong movie enthusiast who has witnessed the evolution of streaming platforms, I find myself captivated by this new wave of niche-focused streamers like Nebula, Dropout, and Beacon. Having spent countless hours on broad-based platforms like Netflix, it’s refreshing to see services that cater specifically to dedicated fan bases and creative independents.

In Season 8 of “Jet Lag: The Game,” there’s an intriguing moment where the contestants, who are part of an unscripted travel competition series, find themselves sitting on a plane behind a fan who is watching an episode of the show on Nebula, a streaming platform. It would have been impossible to imagine spotting a “Jet Lag” viewer when the series first aired in 2022. However, this has become possible now.

Nebula belongs to a surge of new streaming platforms, many of which are managed by content creators and serve specific, devoted fanbases and niche markets. This group also encompasses Dropout, previously known as CollegeHumor, and Beacon, a platform specialized in tabletop roleplaying games, that originated from the YouTube channel Critical Role (with 2.3 million subscribers).

These outlets market themselves as conduits for connecting with dedicated enthusiasts within their specialized fields, and they proudly display their autonomy: No venture capitalists or bothersome corporate entities to report to. Sam Reich, CEO of Dropout, clearly distinguishes his platform from a comprehensive player like Netflix. It’s all about the contrast between “brand-focused approaches and service-oriented ones,” he clarifies.

Netflix aspires to become the solution to traditional television for people, but this isn’t our goal. Instead, we aim to establish a distinct identity as a brand, one that signifies creativity and inspires enthusiasm among subscribers who appreciate our unique perspective. (Reich)

Dropout, a monthly subscription costing $5.99, is primarily recognized for its association with the popular game show “Game Changer,” hosted by Reich, and the role-playing game series “Dimension 20.” This series is led by actor and game master Brennan Lee Mulligan. The fanbase for “Dimension 20” is so dedicated that a live recording in January 2025 at Madison Square Garden was sold out upon ticket release in April.

According to Reich, the number of Dropout subscribers, which started in 2018, is in the range of hundreds of thousands to millions, and the viewership has increased by an impressive 600% over the past three years. In April alone, the total watched hours almost hit 8 million.

As a devoted fan of Dungeons & Dragons, I can attest that this captivating universe offers a rich opportunity for subscription streaming platforms. Enter Beacon, launched by the esteemed Critical Role team in May, priced at an affordable $5.99 per month. While Travis Willingham and Marisha Ray, co-founders of Critical Role, haven’t revealed the exact number of Beacon subscribers, they’ve shared that the initial response has been nothing short of astounding, reinforcing their decision to expand the streaming market with another captivating platform.

According to Willingham, we often interact with content creators through platforms like YouTube, Twitch, or Twitter, which serve as intermediaries. Having a separate, dedicated subscription platform enables them to foster that personal connection and maintain a direct link.

Ray notes: “We’ve consistently emphasized giving our fans the freedom to decide how they want to back us, whether through Twitch subscriptions or T-shirt purchases. All these elements were considered when creating Beacon, which resembles the extra features you’d find on a DVD from the past.”

As a dedicated fan, I’m thrilled to share that since its launch in 2019, Nebula, priced at just $5 a month, has surpassed half a million subscribers, as announced by CEO Dave Wiskus. This impressive growth is largely due to the success of shows like “Jet Lag” and other original productions. In fact, our subscriber count has more than tripled compared to last year!

Over the past year, Nebula, originally centered around YouTube celebrities’ content, has broadened its horizons significantly. Led by Wiskus and chief content officer Sam Denby (creator and host of “Jet Lag: The Game”), they have ventured into film production, established a news division in collaboration with Morning Brew, and even sealed a deal with Spotify.

According to Wiskus, it’s primarily their independent (indie) nature that contributes significantly to the expansion of smaller platforms such as Dropout and Nebula.

As a movie enthusiast, I find it’s a blessing in disguise not having a mountain of cash from the start. You see, without that initial fortune, we couldn’t splurge it away on day one. Instead, our hiring decisions are strategic – they happen when our revenue has grown sufficiently to accommodate new team members. Similarly, when we embark on producing fresh Nebula originals, it’s only when the budget is available that we give the green light.

Simultaneously, both Nebula and Dropout are keen on collaborating with more prominent figures in the entertainment industry. This year, Dropout launched an Emmys For Your Consideration campaign for its shows. Meanwhile, Nebula is negotiating with influential figures within Hollywood for upcoming projects, as stated by Wiskus.

“Wiskus emphasizes that we, similar to Dropout, have put considerable focus on establishing credibility. He recognizes the significance of this legitimacy. In essence, he’s comparing our situation to a movie scene where robbing a bank might seem like an easy solution, but instead, it calls for a well-planned and calculated strategy. This ‘heist’, as he puts it, demands careful thinking and cultivating relationships with the right individuals.”

In the bustling world of mega-streaming, Nebula, Dropout, and Beacon carve out unique niches, standing apart from the crowd. Meanwhile, independent creators like Watcher Entertainment and The Try Guys’ platform, 2nd Try, are making their marks by introducing subscription-based models.

“Reich from Dropout states, ‘It’s ideal if there are many players in this field as it indicates to audiences that services like ours should be included in their new cable package. I don’t want a scenario where Dropout is the only niche streaming service you subscribe to; rather, I prefer a world where you have multiple options, perhaps three or four or more.’ “

2024-07-31 20:18

Small Streamers, Big Business: Inside Fandom-Backed Growth and Industry Infiltration at Dropout, Nebula and Critical Role’s Beacon

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