Threat of Falling Revenues Drives YouTubers towards Patreon
Research
02.04.2024
Content Creators Respond Strategically to Changes in Platform Policies
YouTube is considered the world’s largest video platform. But that doesn’t make it irreplaceable: As YouTube adjusts its ad algorithm and content moderation policies, many content creators turn to subscription-based platforms like Patreon, reducing their dependence on a single channel. At the same time, a shift in audiences between these platforms can be observed, accompanied with an increase in toxicity. These are the results of a study conducted by ZEW Mannheim in collaboration with researchers from the University of Nevada in Las Vegas and the university Télécom Paris, which analyses over 2.8 million contents on Patreon during the YouTube Adpocalypse in 2017.
“Our findings suggest platforms should offer not just advertising-based revenue models but also subscription fee models for creators. This approach strikes a balance, creating an optimal environment for all user groups – content creators, consumers, and advertisers,” says Raphaela Andres, co-author and researcher in ZEW’s “Digital Economy” Unit.
Multi-billion market driven by content
The creator economy encompasses media professionals who publish content on digital networks, generating commercial revenues. These are YouTubers and influencers, but also bloggers, podcasters, artists, and the platforms themselves. “The creator economy has experienced unprecedented growth in recent years. Estimates suggest that it will evolve into a global multi-billion-dollar market, showcasing significant growth potential. Therefore, even minor changes to the algorithm can have substantial consequences,” adds Andres.
YouTube Adpocalypse: exclusive content on Patreon
This is evident in the aftermath of the so-called ‘Adpocalypse’ on YouTube. In 2017, several major advertisers boycotted YouTube because their ads appeared alongside objectionable content. In response, YouTube modified its moderation rules, jeopardising the revenues of content creators. Analysing Patreon data from active creators between August 2017 and August 2018, the authors assessed the number of freely available and subscription-only content, revenue levels, as well as the number of subscribers, likes, comments, and toxic content over time. The findings reveal that creators strategically adapt when altered rules can lead to demonetisation on YouTube, resulting in reduced or no revenue for their videos. Following the changes in YouTube’s policies, the number of creators, their content, and audience on Patreon has been shown to increase. Creators active on both platforms can offset potential financial losses on YouTube with additional activities on Patreon, simultaneously boosting the popularity of paid content on the latter.
Larger audience results in more hate
However, this positive trend for Patreon also has negative consequences: with more creators and a larger audience on Patreon, hate in this community increases. Using the Google Jigsaw software for detecting hate speech, the researchers examined the toxicity of content. Producers who create content on both YouTube and Patreon do not necessarily bring more hate to the new platform. Nevertheless, with the increased volume of content, the overall toxicity of the platform also rises.
“Creators and their audience can shift from one platform to another. Therefore, policies addressing digital violence should also take smaller networks into account. Focusing solely on major networks, as has been the case with the German Network Enforcement Act (NetzDG), will not eliminate hate on the internet,” concludes Andres. The NetzDG, which addresses offences such as defamation or slander on the internet, currently applies only to platforms with over two million active users in Germany. Exemptions include e-mail providers, messenger services, professional networks, specialised portals, online games, and sales platforms.
