In a recent episode of Today, Explained, the hosts spotlighted Dropout TV, a rocket ship in the world of independent streaming. Originally launched by CollegeHumor in 2018 and later sold to Chief Creative Officer Sam Reich, Dropout could have become just another niche service chasing attention with quirky programming. But it didn’t.
Instead, Reich took the reins as CEO after a series of funding struggles and steered the company in a direction that feels increasingly rare: ethical, sustainable, and genuinely fan-aligned.
Dropout leaned into unscripted originals like Dimension 20 and Game Changer, shows that may not compete for mainstream awards but have cultivated fiercely loyal audiences. But that loyalty wasn’t just earned through clever writing or offbeat charm. It was built through an entirely different approach to business.
Here’s a snippet from the episode:
“So as I report in the story, the first year [Sam Reich] made no money, the second year he essentially made no money. And then the third year he made a million dollars because the company was doing well. He’s the owner of the company. At that point, he was like, I need to be making less money, the people at the top need to be making less money. Then in the following year, they started doing profit sharing. Every single person who gets paid $1 by Dropout, shares in whatever profit they have from that year. And talking to Sam, he just truly does not feel like he needs much more money.”
The network pays actors to audition. They were among the first to pay residuals to performers, writers, and crew. When they raised their subscription price by $1, existing users were grandfathered in, but many asked how they could opt into the higher price to help support the content, creators, and company they loved.
From a business perspective, that’s gold. One of the most fundamental principles of customer experience is perceived value: Do I feel like I’m getting more than I’m paying for? Dropout has created such strong alignment between its product, ethics, and audience that fans are willing to pay more.
That’s not something you can create with an ad campaign or any number of efficiency initiatives.
While Today, Explained compares Dropout to niche platforms like Shudder or Hallmark, I’d argue that podcast network Maximum Fun is the better analog. Like Dropout, Maximum Fun was born from comedy roots and recently transitioned to a cooperative ownership model. It maintains a tight, values-driven connection with its audience, expanding its roster without compromising the vibe that made fans loyal in the first place.
What makes both of these organizations stand out is not just their content, but their courage. They’ve reimagined how media platforms could work, in structure, in values, in the way they relate to people.
In a time when we’re told that AI will upend the nature of work, politics, and culture, few seem to be questioning the economic scaffolding holding it all together. Most so-called disruptors still cling to the same investor-driven growth models, the same extractive executive hierarchies, the same tired playbooks dressed up with innovation-speak.
But Dropout and Maximum Fun? They’re actually doing it differently. And if we’re serious about imagining a radically different future, maybe these are the models we should be watching.
Not because they’re perfect.
But because they’re brave enough to try.
*This post assisted by AI