In an industry dominated by major media companies, small streaming platform Dropout is achieving success by catering to a niche audience.
Backstory: Dropout is led by Sam Reich, who was hired in 2006 to create videos for the humor website CollegeHumor.
* Initially, they aimed for wide success through viral content, but after not finding enough financial return, they shifted strategies in 2018.
* The team founded Dropout, described as “like Netflix, but worse! And cheaper,” to create specialized content for a targeted audience.
Dropout’s approach: The platform, available for $6 a month, offers unique shows like Make Some Noise, Cartoon Hell, and Dungeons and Drag Queens.
* Unlike the conventional attempt to please all viewers, Dropout focuses on creating content that caters to a small, specific group.
* It has been successful in this niche approach with steady growth over the past five years.
The result: Dropout’s subscriber count is currently in the mid-hundreds of thousands. This number may be dwarfed by large scale media platforms, but it is considered significant within their target market.
* Reich expressed satisfaction with the company’s situation saying, “even if we carve out the tiniest little sliver of that whale, we can live on the blubber for a long time.”
Future plans: Dropout is also making efforts to become one of the first streaming services to pay residuals to their writers, actors, and crew members.
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