Dropout CEO Sam Reich on business, comedy, and keeping culture weird

Key takeaways

Subscription-based models provide more creative autonomy and simplify the business structure.
Direct-to-consumer strategies can overcome traditional media challenges, as seen with Dropout's growth.
Creative control is paramount for success, requiring a balance between business and artistic vision.
Community engagement and a focus on quirky, unique content can drive audience loyalty and subscriptions.
Flexibility and creative freedom for talent are essential for a healthy and productive work environment.

Summary

The Simplicity of Business Models

Hank Green and Sam Reich discuss the complexities of running a media business versus a simple subscription model. Reich shares insights on how he prefers a straightforward approach, citing that running a small business feels more personal and manageable compared to larger companies with multiple stakeholders and competing interests. He emphasizes that a subscription model helps maintain creative autonomy without the constant pressures of ad sales and partnership expectations.

Building Dropout and Navigating Challenges

Sam Reich recounts his journey in acquiring CollegeHumor and transforming it into Dropout. He highlights the challenges he faced, including layoffs during a pandemic, and how he pivoted the company towards a direct-to-consumer model. They discuss how Dropout's model as a 'comedy SaaS' has grown every year, capitalizing on audience engagement and community building, contrasting this with traditional media's reliance on ad-based revenues.

Creative Control and the Value of Content

The conversation shifts to the creative side of the business, where Reich explains that keeping content focused on the audience and maintaining flexibility in programming is crucial for Dropout's growth. They delve into the importance of producing entertaining content that appeals to viewers, citing how shows like Game Changer and Dimension 20 thrive on unique concepts and viewer engagement, stimulating the subscription growth.

Navigating the Media Landscape

Reich shares his feelings about being part of the media industry, pointing out the shifting landscape where traditional models are struggling. He discusses the challenges of managing public perception while trying to foster an environment of creativity and integrity within Dropout. He expresses a desire for more unconventional projects in media and hopes Dropout can inspire others to explore the quirky and bizarre in content creation.

The Importance of Community and Creative Freedom

Hank and Sam discuss the value of fostering a community among creators. They touch upon profit-sharing models that Dropout has implemented, aiming to support the creative talents involved in their shows, promoting a healthy work culture. Sam emphasizes that allowing flexibility for talent to pursue other gigs while contributing to Dropout is part of fostering a positive creator environment.

Show notes

Guest host Hank Green talks with his friend Dropout CEO Sam Reich about keeping a business simple, trying to run a company the “right way,” and why the internet should be full of as many weird little projects as possible.

Read the full transcript on The Verge.

Links:

How CollegeHumor reinvented itself for the new internet age | People

CollegeHumor shaped online comedy. What went wrong? [2020] | Wired

‘I believe in this enough to try to do it myself’ [2020] | Digiday

Jacob Wysocki needed a minute to process that Game Changer | Vulture

Game Changer smartly weaponizes its online following | Mashable

Vimeo CEO Philip Moyer is betting on the human touch | Decoder

Vimeo to be acquired by Bending Spoons for $1.38B | The Verge

Credits:

Decoder is a production of The Verge and part of the Vox Media Podcast Network.

Our producers are Kate Cox and Nick Statt. Our editor is Ursa Wright.

The Decoder music is by Breakmaster Cylinder.
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