Friday, October 16, 2015

Meet the live-streamers who make money singing, sleeping and making pancakes online

Caitlin Bell is making pancakes. And 4,000 people are watching.

The 22-year-old is a YouNower, an amateur broadcaster who films herself singing or performing mundane tasks — making pancakes, for example — from her parents' house in Oakville. She streams the whole routine and earns cash as she goes.

"It's kind of crazy to me that people are taking the time out of their day to watch me," Bell told the Star. "I'm still getting used to the fact that people spend money on it . . . It's crazy to wrap your head around that."

YouNow is a live video-streaming website — different from YouTube because it lets broadcasters interact in real-time with viewers who chat with them in an accompanying live feed — that launched in 2011.

The site is populated with teens —75 per cent of users are between ages 13 and 24 — but YouNow won't say how popular it is. Though the company is tight-lipped about user numbers, CEO Adi Sideman said audiences spend $1.5 million (U.S.) every month, 60 per cent of which goes straight to the broadcasters.

Instead of getting paid through advertising like YouTube stars, YouNowers get digital tips and gifts — sometimes hundreds of dollars worth.

Bell, a long-time YouTuber, started going live on YouNow in 2011. But it wasn't until May this year when she committed to broadcasting almost every day that her live-streaming profile blew up. She now has 20,000 fans.

"No milk in a bag?" asks one YouNow user in the real-time chat running alongside Bell's live video during the pancake broadcast.

"Oh yeah, we have cartons as well. All kinds of milk," Bell responded, talking to her laptop screen.

Other viewers ask Bell how old she is, ask if she makes money from YouNow, and suggest she uses a fork instead of a whisk for the pancakes.

In June, she earned "partner" status, meaning she can make money from fans who "tip" her. She makes between $6 and $500 during her broadcasts, which last between 90 and 150 minutes.

During the pancake broadcast, some fans give her tips and digital gifts. The contributions earn them a higher fan standing on the chat, help Bell increase her chances of trending on the site and win them much-wanted attention from Bell, who thanks fans but says she's "not on here to make money" today.

It feels fairer to earn money when she's actually done something, like singing and playing guitar, she said.

But other broadcasters earn cash just from chatting. Some users live-stream themselves sleeping.

"How interesting is it really to watch the mundane comings and goings of our everyday lives?" asks Sidneyeve Matrix, a media professor at Queen's University. "For teens, it's the most fascinating thing."

Matrix said the service helps young users connect with each other, form friendships and develop their sense of self. It also gives broadcasters the tantalizing possibility of online fame.

She says YouNow shouldn't be dismissed as voyeurism, though she does worry about online predators abusing it.

Bell said her rules — initially enforced by her parents — are to never give out her home address, phone number or any information she wouldn't freely tell a stranger.

YouNow says it has strict policies against inappropriate behaviour, harassment and illegal activates. The broadcasts are monitored 24/7 by moderators and there are automated systems that address safety concerns, said a YouNow spokesperson. Users can also flag and block other users.

"I take everything with a grain of salt," said Andrew Goeldner, a full-time YouTuber based in Toronto, who goes by the name Andrew Quo. "It's the internet — people are going to be horribly cruel and insanely supportive of everything."

Quo said he initially didn't think much of YouNow, but now sees it as a valuable tool for connecting in real-time with his YouTube following of 130,000 subscribers.

It also helps pay the bills.

Quo won't get into specifics but said he makes a couple hundred dollars a month from YouNow, a couple hundred a month from YouTube, a couple thousand dollars overall from brand deals, including a Smirnoff one, and some money from his Tumblr blog. His annual income is around $20,000, he said.

To earn money, YouNowers must apply to become a partner, meet certain requirements — including maintaining an average concurrent viewership of 500 plus — and be approved by the team. This month YouNow announced their partner numbers grew from 500 to 1,000 in less than three months.

For the future, both Quo and Bell say they just hope their YouNow audiences keep growing — Quo especially.

"I'm safe, I'm okay," said Quo. "But three months down the road, I don't know where I'm going to be. I don't know if I'll be able to pay rent."

But will live-streaming last?

Live-streaming apps are hot commodities right now but their longevity is up for debate.

Services like Periscope, Meerkat, YouNow and other startups are capitalizing on social media users' desire for connectivity and immediate real-time updates. But industry experts point to barriers in generating user traction, question if existing revenue models are sustainable and say it's only a matter of time before advertisers pounce or bigger companies buy them.

"I think they're probably just trying to get bought," said Christopher Anand, associate professor of computing and software at McMaster University. "Sustainable is one thing but these startups are not starting up to be sustainable. They're starting up to become rich."

Live streaming has generated an increasing amount of interest among tech investors in recent months. Twitter bought streaming app Periscope for a rumoured $100 million (U.S.) in January this year, while rival streaming service Meerkat raised it profile by live streaming U2 concerts and linking up with GoPro camera.

For YouNow, a live-streaming network popular with teens that launched in 2011, the revenue model relies on users purchasing virtual currency through iTunes or Google Play then using it to "tip" their favourite broadcasters or buy them gifts.

A paid subscription option for $4.99 per month gives watchers additional chat perks with select broadcasters. The broadcasters — 50 of whom are using the subscription model — receive the lion's share of the monthly fee, according to a YouNow representative.

Just this week, YouNow also secured $15 million in funding from Comcast Ventures and existing backers, bringing their total funding to $30 million.

And unlike YouTube, YouNow doesn't have advertising — something CEO Adi Sideman said is a key part of the company's philosophy.

"We take a creator-centric approach, and advertising does not help the creators," he told Bloomberg. "Patronage supports a direct relationship between the creator and the audience."

Anand questions if that business model can last.

"The tip jar thing — that's never going to get them that (high) amount of return," said Anand. "So they probably do need to sell out to somebody who can take the information about their users and monetize it through their existing ad network."

But YouNow is successfully convincing audiences to pay up. Every month users spend more than $1.5 million — and growing — with broadcasters keeping up to 60 per cent of what audiences pay them, said Sideman. The rest goes to the company.

The company won't release user numbers but says it's had "tremendous growth" with 100 million user sessions per month and 50,000 hours of new video content created each day. On average, a daily YouNow user spends 51 minutes per day on the site.

Regardless, questions remain about the ability of live-streaming sites to build and retain membership in the long-term.

"The challenges that (live-streaming apps) face are much harder than say . . . Instagram, because of the very nature of it," said Mark Pavlidis, co-founder and chief technology officer of Toronto-based startup Flixel Photos Inc. "The ephemeral nature of the apps now are that you can't go back. So if you don't experience it in that moment it goes away."

While some broadcasts are saved, it's difficult to accumulate loyal followings when users can't interact with older content, said Pavlidis. Those users who do develop large followings typically cultivated them elsewhere, he said, referencing Chris Hadfield's popularity on Periscope.

A large group of users — upwards of the 100 million mark — is necessary to be attractive to advertisers, he said.

Some startups try different strategies, including bringing celebrities on board. Most recently, David Beckham signed on to back British live-streaming startup MyEye. Celebrity endorsement can increase startup credibility and attractiveness to investors, said Pavlidis, whose Cinemagraph Pro app was backed by model and actress Tyra Banks.

But Pavlidis doesn't think the sites will last unless they're scooped up by bigger companies.

"I think that's why Twitter has bought Vine and Periscope — it adds to their family of services," he said. "It fits with that package."

There are only two ways to make money, he adds: "You're either selling your software or you're selling your users (to advertisers)."

This group of teenaged and 20-something men are some of YouNow's most popular broadcasters. They're all famous for their social media presences elsewhere but have strong fan bases on the live-steaming service, which they use to chat with their fans in real-time — and make money through.

Danisnotonfire, 978,000 fans

Dan Howell is an English vlogger and YouTuber. The 24-year-old is also a presented on the BBC Radio 1 show, Dan and Phil, with fellow YouNower, Phil Lester.

Reynolds is a 19-year-old Vine star from North Carolina. Reynolds made headlines this summer after a video surfaced of him appearing to pressure his now ex-girlfriend to engage in a sex act.

Alfie Deyes, 756,000 fans

Alfie Deyes is a 21-year-old United Kingdom-based vlogger, author and YouTuber. He has more than 4 million subscribers on YouTube.

Lee is a baby-faced YouTuber from South Africa known for his prankster videos.

AmazingPhil, 722,000 fans

Phil Lester is an English vlogger and YouTuber who co-presents on BBC Radio 1's show, Dan and Phil, with Dan Howell. He is 28 years old.


Source: Meet the live-streamers who make money singing, sleeping and making pancakes online

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