CollegeHumor shuts down
washingtonpost.com
washingtonpost.com
“In words that I’m sure are as surreal to read as they are to type, I will soon become the new majority owner of CH Media,” said Reich, a longtime executive at CollegeHumor. “Of course, I can’t keep it going like you’re used to. While we were on the way to becoming profitable, we were nonetheless losing money — and I myself have no money to be able to lose.”
Dropout, its streaming service, will continue for at least the next six months while it churns out content already slated for release, Reich said. The future of CollegeHumor itself, and other humor sites run by the company, are less certain.
“In these six months, I hope to be able to save Dropout, CollegeHumor, Drawfee, Dorkly, and many of our shows,” Reich said. “Some will need to take on bold new creative directions in order to survive.”
The CH Media staff contracted from more than 100 to between five and 10 employees, according to Bloomberg News.
Maybe this is a Ship of Theseus kind of thing. They get rid of almost all employees, empty the pipeline, and then retool. What's left of College Humor?
The company.
Is it really life support? Or simply, what is always should have been?
Do you really need 100 staffs for College Humor? For the production side, sure you may need quite a bit of staff for each individual production, but once a production is done, you no longer need them, but you still have to pay them. How long you'll have to pay them will be mostly based on luck (what are the odds that you can always produce something that require each individual staff qualification...).
It makes much more sense to have a minimal team, and then hire on a contractual basis based on the production needs.
A dramatic announcement? Their announcement was a few tweets on Sam Reich personnal twitter, which ends with this sentence: Independent comedy lives on -- just now more independent (gulp) than ever before.
What's dramatic was all the interpretations from everyone else (which does makes sense to see 90% layoff as something dramatic).
This is clearly a shutdown for IAC (though seems like they kept a minority stake, so they probably still have a tiny sliver of hope), but from my interpretation, this is simply a big downsizing for Sam Reich.
They got 15m+ total subscribers over a bunch of their channels, that's enough to support a team much bigger than 10 employees (Linus Media Group can support 30 with 10 millions subscribers) and on top of that they got Dropout.
When you hire a plumber do go in your house, do you keep finding him stuff to do to keep him on the payroll?
Looking at it now, this video seems to have been particularly relevant, considering that the company went bankrupt because they trusted a bunch of silicon valley frauds i.e. Facebook..
This isn't the first time Facebook killed culture, and it won't be the last.
We really need to de-platform or find a way Facebook can't steal value.
CollegeHumor had a lot of hits and spawned some genuine talent that is now earning money on its own merits (Jake and Amir, Adam Conover) but overall the content was not consistent enough to have an overall draw that was worth subscribing to.
Payment processing and facilitating has tangible expenses (cost) and payment processors do not want to get involved with any companies involved with sordid industries (higher fraud).
Patreon adopting crypto cuts out the middleman processor and solves both problems.
But crypto ia too user-unfriendly at the moment, so usage would be very limited.
The problem is that when Patreon allows high risk activities, those activities poison the well, and all "legit" processors must stop offering their services. Thereby, Patreon is now left with using more high-risk-tolerant processors, but paying the same high fees for all activities regardless of its actual risk.
That's an issue with the payment manager, not the currency used for payment.
> Payment processing and facilitating has tangible expenses (cost) and payment processors do not want to get involved with any companies involved with sordid industries (higher fraud).
I agree completely.
> Patreon adopting crypto cuts out the middleman processor and solves both problems.
I disagree here. Presumably, the assessment that adult content is higher risk is valid, and Patreon would just assume that risk themselves if they didn't involve a third party payment processor, regardless of the currency used for payment.
Is your claim that fraud would be reduced because there's no real way to reverse a crypto transaction at the moment? If so, my stance is that accepting crypto would just open them up to other issues associated with fraud, and wouldn't be worth the effort.
> But crypto ia too user-unfriendly at the moment, so usage would be very limited.
I agree with this as well, which is another reason crypto isn't the solution here.
You will have fees no matter the payment processor, but crypto has the lowest if you don't need speed. Cutting out the processor achieves this first aim, even though fees are still necessary to run Patreon. Whether or not they're too high after this is another matter.
Adult content is primarily high risk because of credit card charge backs -- it's very rampant. Being illegal operations is another matter that concerns wire fraud and may cause uneccesary burden on the payment processor were it invovled in a criminal investigation.
The chargebacks, higher risk, and threat of investigation are all priced into more "lax" payment processor's fees. Crypto doesn't need to price this in because: it's practically non-reversible and there is no centralized body fronting the risk, i.e decentralized operations.
The blockchain network fronts the risk for wire fraud, so that no other entity, f.e Patreon or PayPal, need to.
I have no stance or argument, these are just some musings I wrote from my observations in the "industry."
Crypto is the preferred payment processor of high risk businesses. Everything else that caters to it is downright garbage in comparison.
Fees are a moot discussion when the underlying crypto is unstable. I'd much rather have higher fees than an unpredictable "currency" like bitcoin that could be worth 50% less one month than when it was collected.
(Not literal cash in most cases - postal money order or personal check. Most banks will cut and mail a paper check as part of online bill pay for free. The unbanked and anyonmous can send cash.)
I think this is a consequence of the nature of the tech industry. It is acceptable to lure customers in with ultra favorable terms, operate at a loss until your consumers are captive, potentially destroying competitors in the process, then gradually exploit your increasingly unhappy userbase.
I imagine we have had anti-anticompetitive laws against at least some of these practices for decades, but the old farts responsible for legislation and justice are slow to catch up to tech's tricks.
I'm still miffed that Firefox (et al) nuked the RSS feed button in the URL bar. RSS has a lot of problems, but we could have improved it instead of just giving up entirely in the face of shitty closed platforms like FB, Twitter, etc.
If this is the fact, does that mean we can get plain text back?
Why not put up a few videos and compare ad revenue? When it didn't add up they could just move back...
I doubt most people agree with that read though.
"So, Mr. Sullivan, why don't you tell me what you think is going on here, and please speak as you might to a young child or a golden retriever. I didn't get here on my brains -- I can assure you of that."
Stage 1: What you can learn.
Stage 2: What you know.
Stage 3: Who you know.
https://twitter.com/adamconover/status/1183209875859333120
An article about the settlement, including a link to the document itself: https://www.hollywoodreporter.com/thr-esq/facebook-pay-40-mi...
People won't pay for a subscription for that, people won't donate enough to keep the business afloat, and people don't actually want to use attention tokens/microtransactions.
A lot of people claimed that these alternatives work, but I've yet to see a business prove that they actually work.
Still, since that is how I consume content, and since they already laid everyone off, I cancelled my trial.
It's tough to make a living being a comedian. Especially in an era of deeply-interconnected communication where "everyone's a comedian."
Poorly executed business models based on faulty data and no clear profitability are fragile.
They are ad platform providers which gives them a totally different position of power than 99% of companies out there trying to live on ad revenue.
The business models are identical, just with vastly different scales.
Google and Facebook can leverage their power to put entire industries out of business.
Facebook should certainly be held responsible for their part, but let's not let CollegeHumor of the hook. In the end, they are responsible for their business, and moving to an unproven platform is very risky no matter what promises FB sales people tell you.
Having said that, if you're CollegeHumor, what you can't do is abrogate responsibility for your business decisions, one of which is risking your entire business on an unproven video platform based on the promises of FB salespeople. You still have a responsibility to validate the platform and not just be a fully trusting stooge. It's like a pedestrian crossing the street when the light is green. The pedestrian should still look both ways, even if they are in the right because it's no consolation to be dead and correct.
https://fortune.com/2019/10/07/facebook-lawsuit-settlement-i...
It's likely that CH specifically erred in acting overly bullish on early numbers back from FB, seeing the view trend they wanted to capitalize on what seemed to be a very strong market and be an early entrant - FB vastly inflated their numbers but even without that aiming to dominate an early market is always quite risky due to the lack of proof around the long term stability of the market... that sort of over-investment would usually result in a contraction to appropriate size along with a loss of fluidity for a company, it's only game ending when the market is committing outright fraud.
Ad revenue and eyeballs don't correlate well across different platforms, as some are better at selling ads than others.
All or nothing partnerships between startups and giant companies have been toxic/fatal in many cases since the days of vacuum tubes. They can work nicely. But supreme due diligence and even suspicion are necessary along the way.
I was never privy to the numbers, but I know carrying the salaries is a huge burden. As a user, proprietary software will often lag off the shelf features by many years because the teams are smaller and they're focusing on things off-the-shelf doesn't do. That's assuming it's well managed.
On the user side of video content: I'm not the biggest fan of YouTube, but bespoke websites can often lack features that keep me from sharing content (wont work on phone, preroll gets stuck, can't link to timestamp). SNL used to only host clips on NBC.com which I could never get to work. They started serving them on Hulu, which was only slightly better. YouTube has been significantly better.
The focus is always spending time/money on the unique thing your company can provide. In addition, like you're saying, be aware of owning as much as possible of your stack--but spreading yourself too thin or trying to run your business the same way you did 10 years ago can bankrupt you, too.
Beyond a couple of viral videos, I don't think I've ever watched anything else from them, so I can't say I know what their competitive position was. I do know that the quality of their video platform was not the issue.
Right around that same time (2008) we were using Linux and YouTube stopped working because we had trouble getting a 64-bit Flash plugin--which is/was heavily used for reference. I remember reading up on the inconsistent video format support between browsers. Flash never worked on iPhones yet YouTube had an app on day one.
I'm sure they were pulled to Facebook because of the fake numbers, but I imagine the burden of maintaining their own platform might have pushed them as well. I'm a bit curious if the recent push away from YouTube and building your own platforms will be successful now that a lot of that tech has settled and infrastructure like CDNs and compute is more commoditized.
You know, I never really thought about it this way, but the way you worded it is perfect.
I talk about the "good old days" of the Internet, and it always comes down to Facebook ruining everything. I'd pin it around 2012. You're spot on though - Facebook outright murders internet culture. God, I despise that company and what it stands for so much.
Prior to its attempt to dominate media sharing on the internet, most of the content I saw on Facebook was created by people I know, about their personal lives. People share far less content of that sort now, and the algorithm doesn't prioritize it when they do. Personal updates from people I actually know are probably reduced by an order of magnitude from a decade ago.
If I want to see funny stuff, cat videos, news, political memes, pictures of food, or anything else of that sort, reddit serves much better than Facebook. Nothing has come along to fill the gap for many-to-many personal updates though, and I miss that. There's a startup opportunity here. The hard part isn't technical - something resembling the Facebook of a decade ago wouldn't be hard to build - but attracting a critical mass of users would be a significant challenge.
I don't know what happen, maybe there's no money in this service maybe people simply got bored with each other's ordinary life.
As a result, the algorithm is less likely to show my friends if I post a picture of my lunch, we're less likely to have a conversation in the comments about recipes or restaurants, and I'm less likely to bother posting the next one.
I've joked a lot about "YouTube Voice" (I didn't invent the idea) where people often seem to talk with a similar cadence and you can see the shift over time in their videos the longer they spend on the platform.
Nobody forced College Humor, Funny or Die, or any of the other companies that shifted resources to believe Facebook. They took a calculated market risk and the gamble didn't pay off (and they don't have enough reserve capital to survive a failed gamble). In an ideal market, the back-stop on this behavior would be "Nobody trusts Facebook's self-reported numbers moving forward."
Is that a sufficient back-stop, or should there be (further) government intervention?
Yep. Their mistake was they believed the hype. A bunch of publishers did. "Facebook is the future!" and 90% of newsrooms started pushing their original content to Facebook, sacrificing their own ad views.
Fortunately, most of the big J players have seen the folly in this already and reversed course. Usually they build their own platform because they have many media properties. But I see a lot of small market and independent publishers still stuck in the "Facebook is king" mentality because of middle managers who are still stuck in the old echo chamber.
I actually disagree. Both Facebook and YouTube were almost certainly causing video view numbers on video websites like these to decrease.
The problem is: what do you do? You can pivot to YouTube or Facebook and become a sharecropper like the 9 zillion other sharecroppers or ... die.
While people complain that CollegeHumor should have held out, I don't see anybody who held out doing any better.
Having seen both the performance and ad-blast of Cracked's website, I can understand why. FB and YT are a better user experience.
Aside: If Google Was a Guy series is one of the funniest things online.
A lot of their efforts just don't land very well. Compare this to say RoosterTeeth (Red vs. Blue, RWBY and others) has done very well in terms of adapting overall, including a couple movie releases (not huge, but out there).
This is fraud and Facebook employees should feel threatened about going to jail. This was not a sleazy sales pitch. This was outright fraud to convince content producers that they were making more money than they actually were.
One thing to watch out for is if this posted under their Geuite account to YouTube, when the gsuite bill isn’t paid, all the YouTube videos will get deleted, leaving a cultural hole.
Of all the Google crimes, this one is accidental but the most damaging to society.
While I agree that content archival is important, I would strongly argue that lost content is not on the same level as for example anti-competitive practices, even in terms of cultural impact.
Maybe some of their skits had bro humor but it always seemed like either generic humor or geek centric than anything.
It's up to the new owner, but I don't expect him to take that risk a second time if the risk model for a better walled garden looks lower.
I'll take that over "gone".
Thanks, CH!
So happy to hear you met on there, and, apparently, are still married! Perhaps it wasn't a failure after all :)
10 years now, and 2 kids! Thanks so much for building it, in our eyes it wasn't a failure at all :)
What a joke. Makes me want to never visit their site again. That is unacceptable.
But I guess its costs were too high such that if it just distributed it all via YouTube it couldn't make any money?
> “In order to beat YouTube, Facebook faked incredible viewership numbers, so [CollegeHumor] pivoted to FB,” former CollegeHumor writer Adam Conover presciently tweeted last October. “So did Funny or Die, many others. The result: A once-thriving online comedy industry was decimated."
Buying Facebook likes looked like a wildly better investment, but that was an illusion.
"About Page likes ads": https://www.facebook.com/business/help/209213872548401
> Page likes ads help you reach people who may like your Page. If your goal is to increase awareness of your business, these ads are a way to promote your Page to people who are interested in your content or businesses like yours.
"Advertising your channel": https://creatoracademy.youtube.com/page/lesson/ad-promotion
> To help drive more views and subscribers to your channel, you can pay to run an ad campaign for your videos on YouTube through Google Ads. You can create an ad that appears before a video starts, or alongside a video on its watch page on YouTube.
Both ban purchasing fake followers, but they'll happily take money to put your page/channel in front of potential genuine subscribers.
College humour was basically forced to put their entire video just to retain views.
But with native video, you don't get that. What happens on Facebook stays on Facebook. People who watch a video on Facebook might like the video or even leave a comment, but they won't follow through and go to CollegeHumor's website. When they're done with the video, they'll just continue scrolling through their feed.
Seems to be a common pattern unintentionally trading your long tail for initial spike traffic. I’d be surprised if this is ever sustainable.
This, obviously, didn't pan out according to what was advertised. The way I understand it, management trusted FB more than they should've, overhauling the way they approached content, which resulted in all the eggs being in one dropped basket.
"We can buy Facebook likes, or YouTube subscribers."
"Engagement's so much better on Facebook, let's buy likes."
Facebook's incorrect (dramatically so - as high as 900% inflated) stats made buying a like look way more cost effective, so that's where the budgets went.
Whether some business unit inside Facebook did this intentionally or not, it's a big reason why I think media companies have turned against Facebook as they feel like they got ratfucked.
I'm speaking out of my butt here, I'm not a lawyer.
https://www.hollywoodreporter.com/thr-esq/facebook-pay-40-mi...
This is kind of depressing; I suspect that $40 million is barely a blip in Facebook's advertising budget, so the sad part is that this probably had almost-literally no effect on them.
I guess it's not a new thing for corporations to own the world, but it's always sad when I'm reminded of it.
In Q3 2019, Facebook had nearly $18B in revenue. Therefore, $40M is about 5 hours of their revenue.
Then don't comment? It's Hacker News not Hacker Speculation.
I miss the indie internet, before big corps and big tech started taking over.
I miss IRC and forums and personal websites. I miss the time when Digg was new and hadn't taken over, and memes weren't the most upvoted content. When websites weren't all Javascript and Google wasn't Yahoo.
MySpace and LiveJournal and Xanga were never as sterile as Facebook and Instagram.
The internet that appealed to the Technorati got put on dopamine-fueled monetization rails and turned into a bulk commodity that maximizes engagement over the population.
Reading that now, it sounds like I'm describing some kind of crazy sci-fi utopia that couldn't even get published because it's too unbelievable.
Perhaps when things are small and the people can relate to most of the people directly, they're able to act in a more altruistic manner.
When we explore this thought experiment further, it has pretty bad consequences for politicians at a national or global stage.
`nc realmsofdespair.com 4000`
A CLI interface with no readline support; an MMO where you need to manually save your game to avoid losing progress whenever the network glitches for a second; very nostalgic :D
The early 2000s had so much promise. The rise of reasonably easy to use blogging platforms, RSS, and web companies that were interested in playing in that world of distributed independent communication. Even Google was a different beast back then. It was the perfect balance: faster paced and more interactive than the days of manually editing files on GeoCities, but still mostly driven by indies doing things because they enjoyed it...instead of the cynical, marketing driven hellscape centered on siloed social media sites.
My pet hypothesis is that we had another Eternal September with the rise of the smartphone. Some of that amazing stuff is still out there, but it's drowned out by the firehose of corporatism and "normal" people. You can even see it with the shift in web sites aiming to be primarily consumed on a phone screen instead of a regular computer.
The good stuff is much harder to discover than it used to be.
Even before Google, if you were persistent enough you would eventually find what you were looking for deep in the Lycos / Alta Vista search results. I have tried doing that a few times recently with both Duck Duck Go (Bing?) and Google, and past page 2 the results seem to devolve into an unstructured morass (no matching terms - but it might be relevant... somehow?) in ways that were much more depressing than searches of old.
IRC didn't go anywhere. LiveJournal is still there. JavaScript-free pages still exist. What has changed is the network of users has found them wanting and left those spaces ghost towns because they don't feel as good to use, or they're too complicated, or they haven't received any UX love beyond "Bare minimum viable product."
I don't miss that. I don't miss a system that excludes users.
I do. Not every community needs to be inclusive. Meritocratic communities with onboarding rails that are non-discriminatory are important in many places.
Do immunologists appreciate armchair antivaxers? Social media has given everyone a soap box to perpetuate damaging memes, and it makes our work harder.
I can't use Reddit to the extent I used to.
I don't think it's necessarily true that places like that went away in the large. Certainly some have shriveled up. And discoverability for them is about as challenging as it always has been---major search engines aren't going to index them at the top of most queries because major search engines are targeting what the average user is searching for and most popular results. But many simply didn't grow larger while the rest of the internet exploded with some billion new people.
Replying a bit transversally here, but I was on IRC 18 years ago and still am every day. Any game you have played before can be played now, easier than before, heck we are just organizing Worms I tournament. Youtube is still full of funny stuff and reddit communities exist, RSS didn't go anywhere and there are many many hobbyists blogs out there still.
Sure stuff got piled on top of all that but nowadays it's easier, cheaper and more accessible to do what we were doing "back then".
Yahoo search would bring up sites on geocities, or small indy sites, for pretty much any topic.
For instance, in the mid 90's you could search for the band "Green Day" on yahoo, and get all sorts of personal fan pages. Now it's 100% corporate crap results.
Independent users no longer have the 'reach' as the corporate users do. We used to share cool things via word of mouth on IRC or AIM or ICQ. Now people just share memes on facebook.
I still share cool stuff with groups of friends via hangouts, irc and iMessage. I find a lot of cool stuff right here on HN too.
As for memes, yeah, I can’t argue that mass appeal jokes bubble up to the top.
I ran a website and accompanying forum from early highschool to well into college, about 8 years or so. It was mostly a large circle of friends but it organically attracted randoms from all walks of life. Once Reddit and Facebook took over, that was that - no one used it anymore, and certainly no one stumbled upon it.
It's not just growing up that changed the thinking on this (ie. "the good old days"), because I think the internet was still awesome in 2012, and I was well into my 20s at that time. That was only 8 years ago - it's not nostalgia speaking here.
Sounds like modern search engines know the score. I'm kind of kidding.. only kind of. If you search for non-corporate content you get more non-corporate results, although admittedly less than in the past.
With that loss of diversity comes loss of communities and cultures. CollegeHumor used to have all its videos on its own site. If you liked the site, you created an account and interacted with the community, which had its own culture as you wouldn't behave as you normally would on FB or Twitter.
With the pivot to FB, that's gone. Now, it's no longer a friendly conversation between people who have CH in common, it's a free-for-all comments section featuring everyone from spambots, trolls and random users who stumbled across the video and just have to add their 2c.
Numerous other forums and blogs, all with their own communities have suffered this fate. That is why the Internet isn't fun anymore.