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Geek & Sundry has been acquired by Legendary as part of the company’s aggressive push into the digital space, launched as a “digital network” in 2013.
Who?
Geek & Sundry was founded as part of the YouTube Original Channel Initiative in 2012. Led by actress and creator Felicia Day, the channel just passed the million subscriber mark and creates scripted and unscripted short form content including Wil Wheaton’s Tabletop (see: massively successful Indiegogo campaign), a scripted comedy entitled Spooked, and a let’s play series called Co-Optitude.
Why?
Felicia has openly admitted, “Because YouTube stopped funding us, we had to find a partner or not continue in the way we have. I’m so glad we found someone I’m excited to go to work with every day!”
Taking a step back, it’s clear that YouTube’s decisions are directly responsible for much of the corporate consolidation in the digital video space. Many blame YouTube’s 45% revenue cut for the cash-flow insolvency of MCNs and YouTube’s decision to end the Original Channel Initiative has forced the Geek & Sundry sale. While YouTube CEO Susan Wojcicki worries about creators migrating to other platforms, it’s clear that they do so for financial reasons tied to YouTube policies.
Context and Consequences
Authenticity is mentioned in the first sentence of Felicia’s statement in the press release; it’s absolutely crucial to her success as “digital native” talent. Authenticity in this context means both consistency of voice in programming and maintaining a grassroots development process.
Geek & Sundry has monetary value to Legendary because its audience recognizes Felicia as one of their own, and shares her content to support her. The most passionate digital native audiences are built “bottom up” and not “top down.” Nerdist, which was acquired by Legendary in 2012, appears to have maintained independence (speaking as an outsider here) and authenticity quite successfully. Hopefully Legendary will maintain that modus operandi with Geek & Sundry.
On the flip side, Legendary is truly the most organic brand fit for both companies. The movies Legendary makes are targeted at the same audiences who feel passionately about geek culture. It’s almost as if Geek & Sundry exists at one end of the production value spectrum and Legendary at the other; they will work together to meet in the middle.
Content Distribution
For context: Nerdist has begun uploading its videos initially to its owned & operated website and later to YouTube. (**Nerdist followed up with a statement affirming their commitment to YouTube — politics!) In addition, Geek & Sundry has a premium content channel on Hulu. The evidence suggests that both companies see additional content distribution strategies as a source of audience engagement and/or revenue.
Currently, Geek & Sundry’s hub channel is doing 3.3 million views per month, which is solid, but certainly not enough to sustain the operating costs of the company.
The key question: Legendary answers to shareholders. Thomas Tull has said, “At the end of the day… it’s my job to maximize the return for our shareholders.” Will this force Geek & Sundry to achieve certain viewership and / or revenue targets? Will they move off of YouTube as a primary platform for revenue reasons?
Legendary’s Digital is Talent-Focused
It’s notable that Legendary has acquired two talent-led digital production companies / MCNs. I think it speaks to the strength of talent and creators on the digital platform, but it’s also riskier when brand equity is encapsulated in one person. Perhaps that’s why Nerdist continues to focus on new formats with new personalities (check out The Dan Cave!) and why Geek & Sundry expanded with Geek & Sundry Vlogs (currently underperforming viewership expectations).
What’s next for Felicia?
Felicia’s career had an inflection point when she created her own wildly successful series, The Guild and followed that up by starring in Joss Whedon’s Dr. Horrible’s Sing Along Blog (which was inspired by The Guild). She’s been busy as a creator, actress, and businesswoman ever since.
Felicia states on the Geek & Sundry forums, “Making bigger projects, possibly working with bigger creators, and biggest, creating my own work for myself! I made Dragon Age and The Guild to create my career and those shows were 2x as big as any show I’ve been able to make on YouTube. After two years of the philosophy “no budget + views = success” I want to be able to make a few shows that are all about the quality and long-lasting vision. And Legendary will help us open doors to make that possible!”
The Legendary deal includes a personal development deal for a TV show. Felicia will also star in a “bigger digital series.”
Take note of Felicia’s thoughts on working in traditional and the perception that YouTubers are simply personalities rather than creators:
“…everyone in Hollywood started offering me hosting jobs. They have a hard time distinguishing between personality and host, and that changes the perception that I’m a creator and artist, so I had to cut back on being “me” if that makes sense.”
Audience Trust
There’s tremendous value in a creator’s content and audience development prowess on the YouTube platform—that’s now an objective fact. However, I worry that this pattern of media consolidation could change that value proposition to the viewer: people like YouTubers because they entertain, and sometimes they can feel like your friends. That trust is precious. When your friend now (indirectly) answers to shareholders, will you continue to feel that authenticity?
On the other hand, I’ve been known to worry too much…and I think that audiences don’t usually pay attention to the puppetmaster. Most people just enjoy the show.
