A concerned YouTuber emailed Patreon and was so encouraged by the response that she recorded a video entitled Patreon Is Not Going Away:
– Patreon PR
Allow me to observe that even the CEO of Patreon knows its business model is not sustainable. Back in January 2019, he observed that they would need to add revenue streams and reduce the percentage of payouts to creators to make it sustainable, but they obviously have not done so.
It’s true that Patreon is very unlikely to go bankrupt right away as a result of the current claims. They received 60 million in investment last July, so even if they have been losing the estimated $1.5 million per month thanks to their expensive offices and 200+ employees since then, it should be sufficient to allow them to limp along for another two years or so. However, that presumes that the investors are going to sit by idly as the executives blow all their investment money on lawyers, arbitration fees, and awards, which strikes me as unlikely. Sooner or later, and the longer this dispute goes on, the sooner it will be, the investors are going to pull the remainder of their money out and put it in gold or the stock market, at which point it’s game over and all the creators move to whatever the next model happens to be.
And finally, what need do we have to keep up morale? Patreon is winless in JAMS administration, 0-for-4 in Owen’s arbitration, 0-for-2 in court, and counting. This statement strikes me as pure projection, especially given that it was made in an attempt to reassure a worried Patreon creator. We have absolutely no need to convince more people to bring claims against Patreon. We haven’t even made an arbitration template available to the hundreds of thousands of potentially interested parties; Patreon very foolishly did that when they included the full text of a demand for arbitration in their lawsuit filings.
(I genuinely could not believe that when I saw it. I’ve seen lawyers do some stupid and crazy things over the years, but that almost certainly takes the cake.)
Anyhow, the most important thing about this statement is the fact that Patreon felt the need to make it in the first place. Also, it’s not meth. Definitely not meth.