Watcher Entertainment's Listening Lesson: A Case Study
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Chapter 1: The Birth of Watcher Entertainment
For almost two decades, Ryan Bergara and Shane Madej have collaborated in YouTube production, initially launching their careers at BuzzFeed. Their unique blend of chaotic comedy resonated well with fans of true crime and the supernatural. Similarly, Steven Lim, who also started at BuzzFeed, gained fame through his travel food show but felt a lack of ownership over his creative efforts.
Together, they envisioned a new venture: a production company where creators could produce shows they were passionate about while retaining ownership, in contrast to the corporate model that often monopolizes creative work. This vision culminated in the establishment of Watcher Entertainment in 2019.
As a fellow creator, I observed this evolution unfold. They seemed to be executing everything correctly, adhering to the principles I learned in business courses.
One of their initial strategies was to launch a Patreon, enabling them to generate revenue and kickstart production on new projects. Fans eagerly joined them on this journey, and when the YouTube channel debuted, they quickly amassed a million subscribers, with many also supporting their Patreon.
A standout show from the company was "Ghost Files," which marked Madej and Bergara's return to their supernatural roots, building anticipation with a six-month promotional campaign. The show was precisely what their audience craved, and other creators took note of their successful launch strategy.
However, not all decisions were met with acclaim, and one misstep almost jeopardized the company's future.
Section 1.1: The Initial Backlash
Since its inception, Watcher’s content was freely available on YouTube, primarily generating revenue through advertisements and sponsorships, supplemented by their Patreon income. But on April 19, 2024, the trio announced a significant shift: they would transition to a paywalled streaming service.
Lim detailed the financial pressures the company faced and expressed a desire to create content more aligned with their personalities, which they felt was hindered by the need to be "advertiser-friendly." They suggested that the monthly fee of $5.99, or $59.99 annually, was reasonable, promising a quality comparable to Netflix.
The audience reacted negatively.
Changing the distribution model of a product can be risky, especially when it involves media that audiences are used to consuming for free. The new pricing structure, combined with the transition to a paid platform, incited outrage among fans.
However, the trio was attentive to the uproar.
Subsection 1.1.1: Navigating the Criticism
In a video titled "Goodbye YouTube," the team reflected on their journey and announced the new service. Unfortunately, the response was overwhelmingly negative, with many accusing them of abandoning their fanbase for financial gain.
Fans pointed out that not everyone could afford the new service, leading to accusations that the trio was prioritizing profits over their loyal supporters.
Despite the backlash, the Watcher team allowed the negative comments to remain visible, showcasing their willingness to engage with their audience’s concerns. Social media experts would argue that this transparent approach is vital in managing public relations crises.
The controversy escalated to the point where major media outlets, including Variety, began covering the story, keeping the issue alive in public discourse.
Chapter 2: A Change of Heart
After several days, the Watcher team made a surprising announcement that was met with a far more positive response.
Less than a week after their initial announcement, they revealed that their shows would remain available on YouTube, albeit with a new release schedule where episodes would debut on the platform a month later than on the streaming service.
Bergara acknowledged their mistake in judgment and expressed regret over the impact of their decision on fans. He emphasized their desire to avoid layoffs and maintain the quality of their shows, responding to criticisms regarding their dynamic as creators.
He asked for patience as they navigated the logistics of the situation, reinforcing their commitment to their audience and expressing genuine remorse for the decision they had made.
The manner in which the Watcher team addressed the backlash serves as a masterclass in crisis management. By allowing their audience to voice their opinions and admitting to their missteps, they have set a precedent for how to navigate such challenges. Other creators can learn from their approach; recognizing errors and being willing to adapt is crucial for maintaining a positive relationship with fans.
While the incident may have tarnished their reputation temporarily, their dedicated fanbase is likely to remain intact due to the grace with which they handled the situation.