“We had a closet room and a prop room, and people would ask, ‘Anyone want this?'” Mr. Hux recalled.
Mythical’s chief operating officer, Brian Flanagan (Brian Flanagan), said the company’s business model is different from the early YouTube companies. While Mythical generates most of its revenue from advertising, the company doesn’t sell its own ads like a multi-channel network does, relying instead on the sales capabilities of platforms like YouTube and Snapchat. Mythical is focused on creating and owning shows by video creators rather than simply serving them.
Running an online video business centered around two stars has other challenges. Hank and John Green, creators of the popular Vlogbrothers YouTube franchise, said in an interview that YouTube stars don’t “scale” — meaning the same person can’t be in two places at once.
But Hank Green said there are ways around this, such as introducing new hosts to hit shows and giving them spinoffs after viewers get used to them, as NBC did with Frasier on “Cheers.” While creators still share ad revenue from certain deals with distributors like YouTube, the financial situation has improved over the years, according to John Green.
“Probably in 2008 or 2009, when a bunch of creators got paid about $5,000 at Carl’s Jr. eating burgers in YouTube videos.” “It’s a good thing they didn’t ask us.”
Mythical’s next chapter is an accelerator program designed to provide promising creators with startup funding without resorting to their father-in-law’s basement.
Mythical will take an ownership stake in these creators’ businesses and advise them, Mr. Neal said, helping them avoid issues that often cause trouble, such as fatigue and boom-and-bust payouts.
“You hear the Rambo story, you hear the scandal story, you hear the burnout story,” Mr. Neil said. “But the story we’re telling creators is a story of success, opportunity and health.”