Spotter pays BBTV creators $125 million for old YouTube videos
Creator-focused financial startup Observer has partnered with BBTV to buy $125 million worth of back-catalog content from YouTubers in its network.
Founded in 2019 by former Machinima executive Aaron DeBevoiseSpotter provides digital content creators with the working capital they need to create new videos by offering lump sum payments for the rights to their old content.
The agreements are narrow in scope: once they are signed and sealed, Spotter and the creators go their separate ways. Creators only license certain videos, and are free to do whatever they want with their lump sums. Spotter, on the other hand, isn’t looking to get involved or secure rights to future content from creators; instead, he monetizes the content he has purchased and collects 100% of the revenue generated.
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“It’s not capital like they would get from a brand deal or anywhere else,” Nicholas PaulSpotter’s chief operating officer said fast company Last week. “The reason we wanted the back catalog is so it doesn’t interfere with any of their initiatives, strategies or growth. They may have new uploads that generate more revenue than the back catalog, and we can still allow them to unlock a lot of significant capital.
Paul added that the sums Spotter pays creators represents “life-changing capital” that allows them to “remain independent and in control of their destiny”.
Spotter (which has raised $30 million in two funding rounds from undisclosed investors) has purchased content from a handful of big-name creators, including MrBeast (71.4 million subscribers on YouTube)Perfect man (56.7 million), and donut media (5.85 million).
Along with BBTV, a Vancouver-based publicly traded digital network that provides content production, distribution, management and monetization services to thousands of creators, Spotter will pay a total of $125 million to acquire content from various YouTubers over the next few months.
To date, according to BBTV, Spotter has paid its creators $18 million for past videos.
“We’re excited about this deal with Spotter, as it’s a great illustration of how we can foster growth for creators while driving new revenue opportunities through our huge library of high-quality content,” Shahrzad RafatiCEO and Chairman of BBTV, said in a statement.
“This partnership was formed on the shared value of providing creators with the resources they need to grow their businesses and brands and ultimately reach their full potential,” DeBevoise said in her own statement. “We pride ourselves on providing impactful capital to the creators of BBTV.”