Why Patreon’s business model is under threat

Vine stars demanded monetization features, its owner Twitter refused, and many fled for YouTube. Platforms got scared. Twitch introduced tipping with Bits. By 2018, YouTube started testing Patreon-style Channel Memberships and Facebook offered Ad Breaks that paid video creators for mid-roll commercials. “It took 15 years of frustration and some ear... See more

Patreon is a good example of why generic community platforms are not the future. You could certainly say that Patreon is already at the center of content, social, and commerce. But of course, Patreon has for years been getting unbundled into A, B, and C type businesses. The reason for Patreon’s erosion is that its product design is totally unsuitab... See more

Still, many creators may look elsewhere to monetize their content through memberships, one-time payments, or merch sales. Some say services like Patreon or Cameo give creators more control and independence. “I’m always wary of putting all your eggs in one basket,” says Weinstein of Underscore Talent.