Maker Studios

Maker Studios was established in 2009 by a group of early YouTube content creators, including Lisa Donovan, Danny Zappin, Shay Carl Butler, Ben Donovan, Philip DeFranco, and Kassem Gharaibeh. The founders, themselves popular YouTubers, recognized the challenges of being individual one-person production studios and envisioned a collaborative entity. Their goal was to pool resources, cross-promote channels, and build a supportive infrastructure for fellow artists to create, distribute, and monetize content more effectively. This creator-first approach was foundational to their business model, which started with a collaborative channel called "The Station" to prove the concept of leveraging combined audiences for mutual growth.

The company operated as a multi-channel network (MCN), providing production facilities, marketing, sales, and merchandise services to its roster of talent. In exchange for these services, Maker Studios took a share of the advertising revenue generated by the channels in its network. This model proved successful, attracting thousands of creators and scaling rapidly. By June 2012, the network's channels were accumulating over 1.1 billion monthly views, and by October of that year, it surpassed Machinima to become the top independent YouTube network. The business primarily served the burgeoning community of online video creators, helping them professionalize their operations and increase their earnings potential. The company expanded its reach by creating verticals for specific genres like gaming, music, and comedy.

A significant milestone in the company's history was its acquisition by The Walt Disney Company in March 2014. The deal was valued at an initial $500 million, with a potential for an additional $450 million based on performance incentives, bringing the final purchase price to $675 million. This acquisition represented Disney's strategic move into the short-form online video market, aiming to leverage Maker's vast network and understanding of the millennial audience. Following the acquisition, Maker Studios continued to operate, but in 2017, it was absorbed and rebranded into the newly formed Disney Digital Network. This transition marked a shift in strategy, with Disney reducing the network from tens of thousands of creators to a more focused group of about 1,000 to better align with its brands. The company was officially defunct as of April 30, 2019.

Keywords: multi-channel network, YouTube creators, digital media, online video, content monetization, creator economy, influencer marketing, Disney acquisition, video production, talent management