Smosh is Homeless - Defy Media's Bankruptcy

YouTube, one of the biggest online video platforms, define themselves on four essential freedoms: freedom of expression, information, opportunity and freedom to belong; putting emphasis on you, the creator at the heart of the organisation and to build a business on your own terms. Since the beginning of YouTube in 2005, it has been a home to a new wave of talent and entertainment from the likes of Shane Dawson, Jenna Marbles, PewDiePie and Smosh who use the platform to create and reach audiences they never could have before.

However, continually in recent years, the platform is being dominated by multi-channel networks and large corporations trying to exploit the YouTube market and take advantage of creators. With the recent news of Smosh’s parent company Defy Media ceasing operations due to 'harsh market conditions', it exposed for many the hold company’s now have over creator freedom where instead of ‘broadcasting yourself', channels have now become a militarily run, profit making endeavour for brands.

Smosh was the embodiment of YouTube values, created by two best friends; Ian Hecox and Anthony Padilla in the Beta stage of the platform. They created comedy sketches and lip sync videos to theme songs, their most famous of which being titled ‘Pokémon Theme Music Video’ which quickly became the most-viewed video on the platform grossing over 24 million views (before being taken down for copyright reasons).

Gif from 2005 'Pokemon Theme Music Video'

From then on, the duo’s success expanded rapidly in terms of content, with six other branching channels, and in terms of leadership when the former independently run comedy giant was sold to Defy Media in 2011 for $0, changing it to a subsidiary under a privatised conglomerate parent. Ian and Anthony were no longer in control of Smosh, but rather, employees with their creative freedom unwittingly taken from them.

Now in 2018, Defy Media has suddenly filed for bankruptcy leaving Smosh, along with 200 now former employees and 40-50 channels in monetary limbo with little or no notice. In fact, most creators only found out news of the bankrupcy through web articles as Defy has had no communication with them before or after the shutdown. Lisa Schwartz's tweet in response to Shane Dawson below, demonstrates that even a member of the highly subscribed channel Clevver (one of Defy's earliest properties) was neglected and discarded.

Tweet by Lisa Schwartz

Along with a lack of information, the main concern from creators is the AdSense revenue that Defy is withholding. A Screen Rant article received information from Georgie Guinane, a former employee of Defy, stating that their employees would be on the pay roll until January 2nd and send out a 60 day WARN notice. However, employees and freelancers are still yet to be paid and channels haven't received AdSense pay from September or October. According to TubeFilter, YouTube is trying it's best efforts to monetise channels under Defy independently, putting them straight into the partner program to regain creator ownership and so any AdSense revenue generated from this point on goes straight to the creator.

The internet has taken this news by storm with many prominent members of the YouTube community speaking out against the unprofessional, "evil and shady" behaviour that Anthony Padilla himself describes, who left Smosh last year due to the mistreatment of the crew and forced manipulation of his fanbase. Ryland Adams made a series of Tweets concerning the transactional relationship with Defy he was forced into, where they would take a percentage of his earnings from advertisement which are still being held by the bank, Ally. The total amount of AdSense revenue owed to partner channels could easily be in the several millions.

Chronological series of Tweets by Ryland Adams

This situation sparked my interest in exploring the current issue of commercialisation on YouTube and whether the sole creator and therefore, creativity, can survive on this increasingly growing brand friendly platform. Smosh is my first case study into the concept of what I describe as 'BrandTube', a term I will be dissecting throughout this blog challenging whether or not this once independently run media power is still a home for non-bias creativity. Multi-channel networks are proving vulnerable and making some of the most successful and beloved channels unstable. Smosh itself, has made a statement and YouTube video reassuring its fans that they will continue to produce and release videos independently while they secure a new home for the brand. It will be very interesting to observe how regaining their creative freedom will affect their content and audience, and whether after all this, they choose to be privately owned again.