Patreon and Arts Funding

Case Solution

Loic Marchat, Danilo C. Dantas, Marcelo Vinhal Nepomuceno
HEC Montreal Centre for Case Studies ()

In 2013, musician Jack Conte realized that he couldn’t make a living posting videos on YouTube. Although some of the ad revenue generated by the videos is shared with the artist, the videos are free to watch and the artist is paid very little. This situation is explained in the “Jack the Musician” section of the case. This section has been slightly fictitious (without changing the basic facts) to interest students, but the story told is consistent with the information used to create the case study. In the “Entrepreneur Jack” section, the topic of promoting musicians is discussed from Jack’s perspective. In 2013, Jack created a crowdfunding platform to address this problem. It’s called Patreon, and it allows artists to request donations directly from their fanbase. The concept is simple: fans agree to pay a fixed amount for each content posted by the creator, which is automatically charged to their credit card. In return, the fan (or sponsor) receives rewards based on the amount paid. In this section of the second case, the concept of Patreon is explained in detail. Students should find out the reasons for the success of the platform and recommend marketing strategies to promote this concept to a wider audience.

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