Dropout (media company)

Dropout TV

Type of site	Video on demand OTT Digital distribution
Headquarters	Los Angeles, California , United States
Area served	Worldwide
Owner	Sam Reich
Industry	Internet
Parent	CH Media (DBA Dropout)
URL	www.dropout.tv
Registration	Required
Launched	September 26, 2018; 6 years ago (2018-09-26)
Current status	Active

Dropout is an American subscription streaming service run by the production company of the same name (formerly CollegeHumor), founded in September 2018. Dropout streams original programming, and does not run advertisements. Its content is mainly composed of live play, such as Dimension 20 hosted by Brennan Lee Mulligan, and improv comedy and panel shows like Game Changer and Make Some Noise, both hosted by Dropout owner Sam Reich. Dropout's series often feature a rotating cast of regular comedians and performers.

Originally founded in 1999 by Josh Abramson and Ricky Van Veen, then independent website CollegeHumor was acquired by holding media and entertainment company IAC.^[1] CollegeHumor's work originally only included editorial articles, but eventually expanded to include online video and development and production of TV shows.^[2] In 2013, the video production CollegeHumor team moved to Los Angeles to continue to create online and traditional video consisting of shows like Adam Ruins Everything and Hot Date as well as sketch and short-form comedy on its YouTube channel.^[2] However, ad revenue became increasingly scarce, with YouTube's unfavorable ad rates and an ongoing risk of CollegeHumor's content being demonetized on the platform, as well as Facebook's inflated viewership numbers not bringing in anticipated ad sales.^[3]

After starting production in 2017, CollegeHumor launched its Dropout TV video platform on September 26, 2018.^[4][5][6][7] CollegeHumor's then-CEO, Rich Cusick, announced the service as a "TV-MA version of CollegeHumor" that would "allow us to double down our investment into premium original content, resulting in a bigger, better, badder CollegeHumor."^[8][9] Dropout was also pitched as a way to allow fans to dive deeper into pre-established popular characters and shows from CollegeHumor's YouTube channel.^[8] CollegeHumor's Chief Creative Officer, Sam Reich, also claimed that the founding of Dropout was in response to difficulty in receiving advertising dollars on traditional media platforms for mature content.^[10] At launch, Dropout announced a mix of scripted and unscripted content, as well as digital comics and chat-story content and a subscriber-only Discord.^[9]

Dropout utilizes CollegeHumor spinoff Vimeo as its hosting service.^[11] Dropout officially launched native iOS and Android apps for its service in December 2018, allowing users to watch shows and also cast to smart TVs. Comics and chat stories were also integrated into the app.^[12]

After launch, Dropout saw that the unscripted and less expensive content both acquired and retained viewers, while more expensive and scripted shows neither acquired nor retained viewers, with the limited exception of WTF 101.^[2] Dimension 20 became the most popular show on the platform, followed by Um, Actually and Cartoon Hell.^[2] Game Changer, hosted by Reich, would also become a success upon launch in 2019.^[2] A year after Dropout's launch, the service had between 75,000 and 100,000 subscribers.^[13] Dropout planned to release a new original title per month in 2019, according to Sam Reich.^[9][14] However, the programming slate did not allow Dropout to pivot quickly enough away from scripted content and it was still not profitable by the end of 2019; Reich later noted that "we had a writer's room full of scripted comedy writers. All of us were sort of having to pivot to think about something that wasn't our primary skill set."^[15][16] Because Dropout was in the middle of a $30 million subscription investment, the streamer was on track to "lose" another $10 million by the end of 2019 before it would be profitable.^[16][2]

In January of 2020, IAC announced it had ceased financing CollegeHumor, leading to the layoff of over 100 employees.^[4][17] IAC unsuccessfully attempted to sell CollegeHumor to numerous studios and entertainment companies at this time, reportedly seeking up to $100 million for the company.^[7][18][19] However, IAC ultimately sold CollegeHumor to then Chief Creative Officer Reich in 2020, who then transitioned to CEO.^[20] IAC still has a minority stake in Dropout.^[4] The deal was finalized in March 2020.^[7] Dropout ended production on scripted shows and focused on unscripted shows such as Um, Actually, Dimension 20, and Game Changer, briefly producing these series through online conference during the beginning of the COVID-19 pandemic.

During the July-November 2023 SAG-AFTRA strike, Dropout series such as Dimension 20, Game Changer and Um, Actually were initially shut down.^[21] Reich stated:

Because we aren't associated with the AMPTP, it's possible we may be able to reach an interim agreement with SAG that allows us to continue to produce content during the strike. But we'll only do that, obviously, if we get the blessing of the union and the buy-in of our performers. If not, we have enough content in the can to last us a little past the end of the year. [...] As for me, I intend to honor my union's position that I not promote SAG productions as a performer – even if they are produced by me. That means that I won't personally be promoting any of our shows for the time being.^[22]

In August 2023, Reich announced that all Dropout shows resumed production as it was determined that their "New Media Agreement for Non-Dramatic Programming" was actually a non-struck SAG-AFTRA contract.^[23][24][25]

Also in August 2023, NPR stated that "Dropout has not shared their official subscriber count, but Reich says it's in the mid-hundreds of thousands. He's very aware that doesn't come close to the hundreds of millions of subscribers that large media companies have, but, to him, that's not necessarily a problem. ... Though they're not required to by unions, he said Dropout is working to become one of the first streamers to pay residuals to their writers, actors, and crew members".^[26] Dropout also pays performers to audition.^[7] Dropout's overall subscriber count almost doubled during 2023.^[25]

Dropout officially retired all CollegeHumor branding in September 2023.^[27] Later that year, Dropout shared its profit with its employees and other workers.^[28][25][7]

As of June 2024^[update], Dropout earns around 80–85% of its revenue via subscriptions.^[7]

Dropout's show Very Important People was the People's Voice Winner in the video comedy category at the 2024 Webby Awards.^[29]

Dropout is available worldwide; as of 2024^[update] around 60% of subscribers were in the United States.^[28]

Dropout launched with a beta price of $3.99 per month, for the first three months of the service. After December 2018, the price rose to a three tiered option, with monthly memberships for $5.99/month, semi-annual memberships for $4.99/month, and annual memberships for $3.99/month.^[30] As of 4 January 2022^[update], new subscribers paid $5.99 monthly or $59.99 yearly, while those who already subscribed prior to that date were charged $4.99 monthly or $47.99 yearly.^[31] Users are also able to access Dropout content through YouTube via the join function. The company has justified the pricing model as allowing them to create content without being dependent on, or beholden to, requests from advertisers.^[32]

In December 2018, visitors to the service spent on average 31 minutes per visit, and visited on average 3.5 times per week.^[12] Throughout 2019, Dropout began to experiment with more live streaming versions of their shows, through using Twitch and podcast-like formats. At the end of 2023, the average user subscribed for 18 months; Reich said in June 2024 that the statistic is continuing to increase.^[25][7]

In August 2019, CollegeHumor also began to partner with Facebook to offer Dropout content via paid video subscriptions on Facebook's platform.^[33]

In addition to original series, Dropout offered videos produced by CollegeHumor 72 hours before they were released to the public. Previously, a subscriber-only Discord server was included as a service, later expanded to non-subscribers as well, until its closure on May 26, 2024. Dropout also has a store which sells merchandise (such as shirts, stickers, and mugs) related to shows on the platform.^[34][35]

Shows on Dropout are usually released fortnightly, a schedule used more often for podcasts than for television.^[25]

Dropout planned to release a new original title per month in 2019, according to Sam Reich.^[9][36]

By 2020, the service had retired all scripted shows in favor of cheaper and more successful unscripted content.^[27]

Dirty Laundry, Play It By Ear, and Make Some Noise, each spun off from Game Changer, premiered throughout 2022. In 2023, Dropout started airing the improvisational interview show Very Important People, and the service saw new shows released throughout 2024, including Smartypants, Thousandaires, and Monét's Slumber Party.^{[37][38][39][40]}

The following shows have concluded and are no longer producing new episodes.

Dropout productions often feature common rotating talent from a roster of performers, including:^[7][76]

• Official website