While Matthew Patrick’s impressive YouTube following is certainly noteworthy, his most significant accomplishment lies in crafting a unique brand that seamlessly integrates entertainment and education. That’s because he successfully leveraged his expertise to rebrand his company, allowing him to make a seamless pivot away from a career that was both emotionally draining and logistically complicated, ultimately enabling his departure.
Earlier this year, gaming personality Patrick, widely known as MatPat online, made a surprising announcement that sent shockwaves through the community: he was stepping back from his successful career. He confessed that he didn’t have a soft spot for late nights. I don’t love the truth that my wife Steph and I’ve been work-obsessed for over a decade; the place I’m sitting down to dinner with my best friend, and we’re discussing business logistics… I miss the times when I could simply sit on the sofa alongside her and play video games – it’s not just about content.
When YouTubers face burnout, many abandon their content creation, choosing to pivot towards new endeavors instead of persevering through the challenges. Despite being a lucrative opportunity for established YouTubers, channel promotions remain notoriously difficult to navigate in the industry. The reputation of these companies is already tainted due to their reliance on the unpredictable nature of social media platforms such as YouTube, Instagram, and TikTok. While creators are integral to their firms’ manufacturing processes, this proximity can make it challenging for viewers to assess the significance of their contributions to the channel’s overall success.
MatPat’s media firm, Theorist Media, underwent a swift transformation with the acquisition by Lunar X, concluding within a brief few-year period. This strategic move ultimately provided MatPat with the financial security to pursue retirement. He declined to specify the exact amount.
MatPat told TechCrunch that their team held discussions with 10 distinct companies. “We ultimately selected a product that appreciated our brand’s evolution over the past decade, recognising the strength and familiarity of our beloved model.”
Turning YouTube into a full-time profession is a dream, but it’s not sustainable forever. As the creator economy evolves, Theorist’s successful transformation from a small operation to a robust business model, supported by 22 full-time staff members and approximately 20 freelancers, serves as a model for other entrepreneurs looking to navigate similar growth milestones.
“A significant weakness of creator media firms is their reliance on individual leaders,” the seasoned entrepreneur cautioned TechCrunch in an interview. As people approach their mortality, or whenever they choose to step back from the world, the reality is stark – life simply ceases, leaving a sense of disquiet and unhappiness. Is there a legacy piece I built to withstand my absence, allowing me to finally take a well-deserved break after a decade-long stretch?
The VlogBrothers, a pioneering YouTube channel founded by young novice YouTubers, including Hank Green, now over 17 years old, featuring an extensive archive of vlogs documenting their conversations and experiences with each other. You can’t separate the titular brothers from the essence of VlogBrothers.
MatPat noted that even that consideration was a component of the valuation process. What level of person-centricity does Theorist possess, and would our organization’s ownership require adherence to those principles?
As a natural extension of MatPat’s legacy, Theorist stood poised to excel as a new host, thanks to the simplified and replicable nature of his reveal formats. While MatPat’s distinct persona initially propelled the channel’s visibility, the consistent coding standards in his videos facilitated a smoother transition for new hosts. On his flagship channel, Recreation Idea, MatPat delves into the intricacies of video games, producing in-depth explainers that dissect his thought-provoking theories. However, with the right writer, another host could potentially emulate the format and high standard set by their films.
While it’s still in its infancy, the ecosystem remains largely untested and undefined. As one of the initial successful acquisitions and transition targets in our region, he noted. “After completing the acquisition, we unexpectedly received a high volume of inquiries from various YouTube influencers seeking collaboration opportunities.”
Lobbying for creators
Despite retiring from YouTube, MatPat remains quite active. He has actually spent considerable amounts of time on Capitol Hill. As he transitions out of filmmaking, he is uniquely positioned to leverage his status as a successful YouTuber to educate lawmakers on the concerns and needs of smaller content creators.
MatPat, a prominent YouTuber, expressed surprise at finding himself in an unexpected role: a representative for a massive corporation with a valuation of $250 billion, a far cry from his usual online persona.
He’s thrilled to inflate his sense of self-importance when it boosts his professional reputation. MatPat and his spouse, Stephanie, a co-owner and Chief Operating Officer at Theorist Media, are adamant that their representatives need to understand the inner workings of content creation companies like theirs. The decentralized finance ecosystem, in response to Goldman Sachs’ predictions, may potentially reach a valuation of $1 trillion by 2027. According to Oxford Economics, YouTube’s innovative ecosystem is estimated to have supported more than 390,000 full-time equivalent jobs in 2022.
“Patrick emphasized that his organization is working to educate lawmakers about the nuances of the creator economy, highlighting its complexity and the distinct tax implications that affect small businesses like theirs.” Whenever you discuss accounting with them, they’re often skeptical. As a consequence of the absence of a transparent indicator on tax types, such as, what constitutes a creator enterprise?
Legislators often struggle to stay current with evolving issues, lacking depth in their knowledge and understanding. For many elected officials, the notion of leveraging social media to build multi-million-dollar enterprises is an overwhelming concept, not to mention the reality that creative entrepreneurs are successfully doing just that. During his recent trip to Capitol Hill, MatPat reflected on the immense progress still needed to be made.
“After speaking with legislators the following week, it was as if people were saying, ‘Can you explain how Roku differs from YouTube? What exactly is Roku?’ he recalled.” “What does this phrase reveal about our journey?”
Without sufficient regulatory oversight or comprehension of their craft, creators and their organizations are often left to fend for themselves. As a self-employed entrepreneur, the constant struggle to stay afloat is relentless, but relying heavily on dominant tech platforms amplifies the anxiety and uncertainty. A single modification to an algorithm can significantly impact a content creator’s ability to thrive among their audience, ultimately leading to a substantial decrease in revenue as lower view counts translate to reduced earnings. Through strategic models and collaborative partnerships, our organization forgoes traditional payment structures.
This trend isn’t limited to just New York and California? Top talent from across the United States is converging on this innovative gathering, according to MatPat. “After meetings on Capitol Hill, we gathered with our local district consultant. I recall saying, ‘Are you aware that the MacBeast is present in your state?’ He replied, ‘Ah, yes, I’m familiar with him.'”
Significant tweaks to coverage parameters can have a profound impact on content producers.
Currently, there is no standard designation or official authority’s data that explicitly states, ‘I’m a content creator by profession.’ “I generate the majority of my income through creating diverse types of content – whether it’s written material, video, or social media content – whatever is in demand,” he said. “As lawmakers gaze upon their districts, they may behold, ‘My constituents in rural Iowa are comprised of numerous creative entrepreneurs – a vital sector deserving of attention.'”
While the creator business often faces skepticism, online film-making is increasingly recognized as a legitimate vocation. While many children express enthusiasm for becoming YouTubers, a mere fraction of aspiring creators can realistically expect to generate sufficient revenue to sustain themselves. While MatPat believes that, aspiring creators can actually acquire a range of transferable skills through their experience on YouTube.
MatPat posits that starting a YouTube channel is a perfectly viable pursuit, urging others to take the leap and potentially transform into a successful content creator, as the skills acquired in this endeavor can be broadly applicable across multiple domains. Content creators must excel in a range of skills, including public speaking, scriptwriting, video editing, cinematography, social media marketing, data analysis, and more. “One pressing concern I have is identifying transferable skills where it’s clear that even though I may not be performing this specific role, my experience gained through YouTube can still be applied.”
MatPat’s departure served as a catalyst for the company’s growth, demonstrating that successful retirement is indeed possible. His next move? Stirring up even greater controversy on Capitol Hill.
“If our lasting impact lies in amplifying the innovations of future tech pioneers, then we’ve truly excelled,” he stated. That’s the perfect phrase to conclude on.
