Image Credits - CNBC
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The Try Guys, a leading YouTube creator group, has launched a new standalone streaming service called 2nd Try, successfully shifting away from dependency on Google’s algorithms and advertising revenue. This strategic move is already proving fruitful.
The group’s decision to launch 2nd Try reflects a broader trend among creators seeking more stable income sources. “Having a business that is reliant on ads is very unstable and very unpredictable,” Zach Kornfeld, co-founder of The Try Guys, told CNBC. Kornfeld highlighted the challenges of adapting to ever-changing algorithms while trying to maintain creative integrity.
2nd Try, which launched in May, offers exclusive content behind a paywall for about $5 a month, free from advertisements. This model has helped The Try Guys grow their subscriber base to over 8 million on YouTube, with 2.7 billion views. The company reports that 2nd Try is on track to achieve profitability within its first few months.
This shift comes at a time when creators face mounting pressures from unpredictable ad revenue and potential disruptions like a TikTok ban, which could impact billions in annual revenue. Other creators, such as Watcher Entertainment and Dropout, are also exploring subscription models to escape the volatility of social media algorithms.
Despite facing a significant setback in 2022 due to a scandal involving one of their co-founders, The Try Guys have managed to recover. Kornfeld noted, “Our company was operating at a loss for essentially two years. We got to a point where it cost more money for us to make the shows our audience loved than we got in from YouTube.”
Revenue from 2nd Try now constitutes about 20% of the company’s total sales. While The Try Guys will continue to use YouTube for content distribution, their focus is on expanding 2nd Try alongside merchandise and live tours to secure a more stable financial footing.