Topline:
YouTube stars are increasingly bucking the traditional studio path in favor of the video sharing service, which has grown bigger than any of Hollywood’s many platforms.
Why it matters: YouTube consistently ranks No. 1 on the Nielsen Gauge charts with nearly 10% of the audience, ahead of Netflix in second with 9%. Its audience share is so high in large part because of YouTube’s creator partners — in whom YouTube has invested more than $70 billion in just the past three years. Because of the platform’s reach, and the creators’ ability to keep ownership of their intellectual property and retain full creative control, they feel comfortable remaining on YouTube and not pursuing Hollywood avenues.
How agents and lawyers are cashing in: According to WME partner Ben Davis, who represents Hot Ones host Sean Evans, earning potential for digital talent has grown by at least 10 times what it was a decade ago — with top talent easily generating tens of millions or more. Agents and lawyers are likely being paid their normal percentage fee on brand partnerships, merchandise lines, books, tours and other such deals, though some clients — depending on how early into their ascent they were signed — can dictate which types of income they’re paying commission on.
How Hollywood talent is adapting: Some Hollywood talent is migrating to where the audience is, with the likes of Dwayne Johnson, Kevin Hart, Jon Stewart and more pursuing digital platforms. One notable example has been Joe Rogan, who transformed his career with a YouTube-first podcast that Spotify felt the need to shell out multiple $200 million-plus deals for.
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This story is published in partnership with The Ankler, a paid subscription publication about the entertainment industry.