Why YouTubers Are Having a Hollywood Moment

The episode explores the evolving landscape of the creator economy, focusing on YouTube's increasing influence in traditional media spaces. Matt Bellany discusses with Andrew Yaffe, CEO of Dude Perfect, about the group's strategic moves to expand their brand beyond YouTube into traditional streaming platforms like Netflix and Amazon. They highlight the potential for YouTube creators to reach wider audiences and secure larger budgets, drawing parallels with Mr. Beast's ventures. The conversation underscores the growing interest from streaming services in tapping into the massive fan bases of popular YouTubers, suggesting a significant shift in entertainment consumption trends.

• YouTube has surpassed Disney to become the largest TV distributor in the US, accounting for 11% of TV viewing, outpacing Netflix and Prime Video combined.
• Subscription streaming services are actively pursuing YouTube creators for shows, indicating a shift in entertainment consumption patterns.
• Gen Z audiences show a preference for YouTube creators over traditional film and television stars.

"The latest Nielsen Gage chart just came out and YouTube jumped Disney to become the biggest distributor in the US 11% of viewing on TVs bigger than Netflix and Prime Video combined."

• YouTube's growth in TV viewership highlights its significant role in modern media consumption.

"The lure of these other services, of course, is that they can dangle bigger budgets and a wider audience and, yes, a little more prestige."

• Streaming services offer YouTube creators opportunities for broader exposure and financial incentives.

• Top YouTube creators are becoming influential figures, comparable to traditional TV stars, as platforms seek to capitalize on their large followings.
• Subscription services are negotiating with YouTube stars for exclusive content, recognizing their potential to attract viewers.

"Because as YouTube slowly becomes just TV, these creators are becoming the new TV stars."

• The transformation of YouTube creators into mainstream entertainment figures signifies a shift in the entertainment industry.

"Studies suggest Gen Z audiences prefer these creators to traditional film and television stars."

• Young audiences' preference for YouTube creators over traditional celebrities indicates changing viewer demographics.

• YouTube creators are organizing their own upfront events to secure advertising deals directly, similar to traditional TV networks.
• Custom brand integrations in YouTube content offer unique advertising opportunities beyond traditional product placements.

"You and a bunch of the top youtubers are doing your own sales event for advertisers tonight. Why are you doing that?"

• Creators are taking control of their business models by directly engaging with advertisers.

"We did a recent Carvana partnership, and in that one we gave away cars. We shot the video at one of their car vending machines."

• Innovative brand partnerships on YouTube demonstrate the platform's potential for creative advertising solutions.

• Revenue for YouTube creators comes from both brand partnerships and YouTube's revenue-sharing model.
• The quantity of content produced influences the value of advertising revenue through YouTube.

"Both are healthy revenue streams for us. We have a few very meaningful brand partners that integrate across a lot of our content."

• Successful creators balance income from brand deals and YouTube's monetization to sustain their operations.

"The YouTube split is also a bit of a quantity game in terms of how much, you know, brands produce."

• The frequency and volume of content production affect creators' earnings from YouTube's ad revenue share.

• YouTube stars are considering expanding to subscription streaming platforms to leverage larger budgets and wider audiences.
• The collaboration between YouTube creators and streaming services could result in a significant Hollywood presence for these digital stars.

"Dude Perfect is a great YouTube success story, but now they're thinking about making the jump to Netflix or Amazon or one of the others."

• The potential move of YouTube creators to subscription services highlights the blending of digital and traditional media.

"Are YouTube stars about to have a big Hollywood moment?"

• The speculation around YouTube creators' transition to mainstream entertainment underscores their growing influence.

• Dude Perfect has a history of engaging with traditional streaming services, including a show on Nickelodeon and partnerships with Amazon for alternate broadcasts of Thursday Night Football.
• Transitioning to traditional platforms allows access to different audiences and enables content creation at a larger scale with varied monetization models.
• Traditional distribution can support creative ideas that may not be viable under YouTube’s business model due to budget constraints.

"It's something that Dude Perfect has done for a long time. We before my time, but the guys had a show on Nickelodeon for many years. We've had a partnership with Amazon streaming Thursday Night Football as an alternate broadcast."

• The quote highlights Dude Perfect's established history with traditional media, which provides a foundation for further expansion into these platforms.

"There are some really exciting ideas that we've kicked around that, you know, have. That others have reached out to us about around content that based on a business model on YouTube, may not make a ton of sense."

• This quote underscores the potential for creative projects that are feasible with the resources and audience reach of traditional platforms, rather than YouTube.

• YouTube videos are self-produced, often with high production values, but typically cost less than traditional television episodes.
• Creating episodic content at scale requires more than brand and ad support available on YouTube, necessitating exploration of other distribution models.
• The audience demographics differ significantly between YouTube and traditional broadcasters, with YouTube skewing younger.

"In a traditional YouTube video, we'll produce that ourselves. And we have pretty high levels of production."

• This quote illustrates the self-sufficient nature of YouTube content production, which contrasts with the collaborative opportunities in traditional media.

"Many of our videos are less expensive than that. But being able to create episodic content at scale is something that, you know, getting an individual brand and ad support for that probably isn't enough."

• The quote explains the financial limitations of scaling content production on YouTube compared to traditional platforms.

• YouTube provides a substantial audience, but platforms like Netflix offer access to a global subscriber base, enhancing exposure and brand awareness.
• Traditional platforms can introduce content to audiences unfamiliar with YouTube, broadening demographic reach.
• The potential for reaching a new level of success exists on platforms with large subscriber bases, similar to the success stories of other creators on these platforms.

"We reached and heard from totally different audiences who weren't familiar with our YouTube content."

• This quote highlights the opportunity to engage with new audiences through traditional broadcasting.

"You look at a platform like Netflix with 300 million subscribers worldwide, and you say, okay, we can go to the next level if we have a hit on one of those platforms."

• The quote emphasizes the strategic advantage of leveraging the large subscriber bases of traditional streaming services for greater exposure.

• Dude Perfect collaborates with CAA, primarily through their sports group, to form strategic partnerships with athletes, sports organizations, and broadcasters.
• The agency provides more than just representation for brand deals and tours; it facilitates valuable industry relationships.
• CAA's involvement was instrumental in Dude Perfect's fundraising efforts, providing advice and support.

"One really interesting thing for us and where we're a little bit different than most creators is our primary relationship with the CA sports group."

• This quote illustrates the unique focus of Dude Perfect’s relationship with CAA, emphasizing sports-related partnerships.

"We have a great relationship with them that it's been, it's been very valuable for us."

• The quote underscores the significance of CAA’s role in enhancing Dude Perfect’s business operations and opportunities.

• Dude Perfect has experienced significant growth, increasing their team from 25 to 35 employees, with plans to expand to 60 by the end of the year.
• The construction of a $5 million compound and the revenue from tours and videos reflect the scale and success of their business.
• The company generates tens of millions of dollars in revenue, indicating a robust business model.

"When I came on about six months ago, we had about 25. We've added to the team. We're up to 35 and hoping to grow."

• This quote highlights the rapid expansion and scaling efforts of Dude Perfect’s operations.

"Just built a $5 million compound and I'm presuming the revenue from these tours and from the videos, we're talking tens of millions of dollars of revenue."

• The quote provides insight into the financial success and infrastructure investments made by Dude Perfect, reflecting their growth trajectory.

• The company has significant interest from investors and has evaluated various growth models.
• They have a strategic advantage with substantial capital, allowing for selective and riskier investments without financial pressure.
• Creators often take unfavorable deals for cash flow, but this company can afford to be strategic and proactive.

"The guys had a lot of interest in money. Good. Yes."

• The company has attracted considerable financial interest, indicating strong market confidence.

"We don't have to take every deal that comes our way just to stay afloat. We're in a really proactive, strategic place and it's an exciting place to be."

• Financial stability allows the company to make strategic decisions rather than accepting every opportunity out of necessity.

• The creator economy is shifting towards more real-life (IRL) experiences and consumer-facing products.
• Collaborations with brands and developing merchandise like board games and toys are key growth areas.
• The company aims to leverage its large, engaged audience for product success.

"I think a lot of it is things that are going to look more and more IRL."

• The future of the creator economy involves more real-world interactions and experiences.

"We've done board games and toys and a whole bunch of other stuff we have in the works there that our fans have really loved."

• The company is expanding its product offerings, successfully engaging its audience with tangible goods.

• Streaming services may increasingly incorporate creator-style content to appeal to younger audiences.
• Platforms like Netflix and Amazon might explore content from prominent YouTubers due to cost-effectiveness and audience reach.
• YouTube's TV viewership surpasses that of traditional streaming giants, highlighting its significant market position.

"As much as YouTube wants to elevate and be more professional looking for advertisers, the Amazons and Netflix of the world want to appeal to the Gen Z and young millennial audience."

• Streaming services are looking to integrate creator content to attract younger demographics.

"There's more YouTube watched on TV than Amazon and Netflix combined."

• YouTube's TV consumption is massive, surpassing major streaming services, indicating a shift in viewing habits.

• Balancing premium content offerings with free access is a challenge for streaming platforms.
• Platforms are converging, with video podcasts and other forms blurring traditional content lines.
• Success in the creator economy may require a breakthrough hit to capture widespread attention.

"It's a line, though. You gotta walk a line. If you're programming one of these services, you don't want your platform to feel free when you're charging."

• Streaming services must balance the perception of value between free and paid content.

"There's a lot of interesting areas where I think platforms are starting to run together for sure."

• The lines between different types of content platforms are increasingly blurring.

• The focus is on expanding content franchises and developing new talent under the brand's umbrella.
• Building a network and spotting talent are crucial as the original creators age.
• The long-term vision includes more diverse content and consumer experiences.

"A big thing over the next five years is adding additional talent underneath our umbrella is going to be really important."

• Developing new talent is essential for sustained growth and brand longevity.

"Five years from now, ideally, yeah, we are much larger and have a lot more content that and more products and you know, fun consumer experiences that families can, can enjoy."

• The aim is to significantly expand content offerings and consumer experiences in the coming years.

• The company has learned the importance of not chasing views without a clear business plan.
• Strategic focus is necessary to avoid distractions and ensure sustainable growth.

"It's sometimes easy to chase the view and chase views to say, hey, we're seeing there's a merging opportunity in X or Y."

• Chasing views without a strategic plan can lead to distractions and inefficiencies.

• Discussion about the challenges faced in launching a gaming channel without a clear plan.
• The channel has been relaunched with a more structured approach to ensure sustainability.

"We had launched a gaming channel four or five years ago without a perfect plan on how we were going to tackle the gaming market. We now just relaunched that a few months ago and have gotten a lot more, a lot more ducks in our in a row on how we're going to build that into a sustainable channel."

• The quote highlights the initial lack of strategy and the subsequent efforts to create a viable and sustainable gaming channel.

• Celebrities are increasingly joining YouTube, often without understanding the effort required for consistent content creation.
• Mention of Leonardo DiCaprio launching a YouTube channel for a movie trailer.

"There's so much this now that every, every celebrity wants one, every athlete wants one and doesn't realize like it's really hard to produce long form content."

• The quote emphasizes the misconception among celebrities about the complexities of producing regular and engaging content on YouTube.

• The importance of balancing personal content preferences with data-driven decisions.
• Focus on understanding video retention points and audience engagement metrics.
• Avoiding trends that do not align with the brand's core identity.

"We are deep in the data and trying to understand retention points in our videos and drop offs and things of that sort and looking at other channels to see what's working. But ultimately, you know, I think when we go away from the stuff that makes us great is, is really when we struggle."

• This quote illustrates the dual approach of using data analytics while staying true to the brand's unique strengths.

• The transition from self-editing by the original team to employing a full editing team over the years.
• Growth from a small team to a larger, more professional production setup.

"They started the five of them for probably seven or eight years was just them. They added a couple guys at that point and then over the last almost 10 years we've gotten up to the 20 to 25."

• The quote describes the expansion and professionalization of the video editing process over time.

• Discussion on Jason Statham's new movie and its potential success.
• Mention of other upcoming films and their expected performance.

"This movie was co written by Sylvester Stallone, picked up by Amazon last year. It's a follow up to the Beekeeper which actually grossed 162 million worldwide."

• The quote provides context on the movie's background and its potential impact on the box office.

• Concerns about Jenna Ortega's recent film choices and their impact on her career.
• The importance of staying with successful projects like "Wednesday."

"Man, I'm a little worried about Jenna Ortega. I'm not going to lie. I'm a fan of hers. I really like Wednesday. But other than Beetlejuice."

• The quote expresses concern over Jenna Ortega's career decisions and the importance of building on successful roles.

• The risks associated with leaving successful projects prematurely.
• Examples of actors who have left successful shows and faced challenges.

"These people who leave, you know, Dan Stevens, David Caruso, these people who leave, it doesn't usually work out."

• The quote underscores the rarity of hits and the potential pitfalls of leaving them too soon.