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YouTube Stars Fight Back

Machinima and Maker Studios, two of YouTube's most high-profile networks, have come under fire from their own talent

The tweet was followed by another, two minutes later: "@MakerStudios holding a YouTuber's AdSense account hostage after you promised to sign it back over is bad for your business."

The public spat was particularly ironic since Maker Studios positions itself publicly as the network for YouTube stars, founded by YouTube stars. Among them is LisaNova (Lisa Donovan), who parlayed her YouTube fame into a brief stint on MadTV before starting the network with fellow YouTube stars Danny Diamond (her fiancé, Danny Zappin) and Thebdonski (her brother, Ben Donovan).

The trio has said that it sees Maker as the United Artists of YouTube — akin to the studio founded by Charlie Chaplin, Mary Pickford and other Hollywood stars in defiance of the controlling studio system. Zappin is fond of telling the story of how Maker helped move YouTube star ShayCarl and his family to Southern California from Idaho so he could be part of their fledgling company.

For a few years, Ray William Johnson was part of the Maker family, too. Johnson, 31, launched his YouTube channel in 2008, and dropped out of Columbia University shortly thereafter. For the last four years, he's been producing videos pretty much daily.

Signs that there might be trouble between Johnson and the studio first emerged in October, when Johnson casually announced in one of his daily videos that his company, Equals Three, was in the process of leaving Maker.

"What's up guys, you're going to notice a few things are different," he tells viewers, standing in front of the same comic book panel–patterned backdrop he typically uses when shooting. "I'm filming this episode from my apartment."

In the future, Johnson explained, he would no longer be part of the Maker network. He didn't go into detail, though — the rest of the video is spent, like most of his videos, cracking wise about viral videos.

After Johnson's video was uploaded to the site, a representative for Maker released a statement to the website New Media Rockstars, insisting that Johnson was still part of the Maker network but that, "with the recent decline in viewership on [Johnson's channel], it made sense for him to go back to producing the show himself."

Johnson shot back, telling the same reporter that he was leaving not because of ratings but because Maker had suddenly demanded an ownership stake in his company.

After that, both sides went quiet for a little while. Until, that is, December, when Johnson issued those angry tweets — and then explained in an email to L.A. Weekly and other outlets why he finally was speaking out against Maker.

"I feel that I have a responsibility to myself and to the YouTube community to stand up to them and their rather thuggish tactics," he wrote. "At the end of the day, YouTube-based networks are built around exploiting YouTube channels for profit."

Maker, he says, wanted 40 percent of his channel's revenue after production costs, and half of the show's intellectual property in perpetuity.

"They wanted to own 50 percent of the intellectual property of Equals Three for the rest of eternity and weren't offering much in return," Johnson explained.

He wasn't biting.

"Negotiations quickly became a bizarre pissing contest between the heads at Maker Studios and myself. I wouldn't hand over my intellectual property, and they wouldn't stop aggressively trying to get me to sign it over to them," he wrote.

The company struck back. According to Johnson, the network shut down production on his album, which had been under way for eight months at Maker's Culver City studio, and, a day later, halted production on his 4-year-old show.

After negotiations faltered, Johnson began recording episodes first at his apartment and later at Papertown Studios in L.A. But two months after leaving Maker Studios, he alleges, the company still hasn't turned his AdSense account back over to him.

In the email he provided to the Weekly and other media outlets, Johnson didn't just throw down about his contract. He got personal.

Johnson wrote that Maker CEO Danny Zappin had gotten drunk and confessed to being a convicted felon. (In a letter sent to Maker's partners a few days later, Zappin acknowledged that he'd been convicted of felony drug possession 12 years prior.) He didn't know about Zappin's conviction before he signed with Maker, Johnson wrote, suggesting it might have affected his decision to join the company.

A few hours after Johnson first took the dispute to Twitter, he tweeted again. This tweet featured an Instagram of an iMessage that Johnson claims to have received from Zappin. It read "You're [sic] lack of integrity and character are sad. Fuck You. Prepare for war ... bitch."

Former Maker Studios partner Shane Dawson, who left the studio in 2009, tweeted at Johnson, "i got the same text 3 years ago hahhahahaa oh youtubeee."

Maker Studios declined to comment on the status of Johnson's AdSense account. Since his first email, Johnson has declined to provide any additional information. Instead, a representative for the star emailed to say, "He has  been advised by his attorney to not give any more interviews until the issue with Maker has been resolved."

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19 comments
starjonestown
starjonestown

This is Hilarious!  Web slaves...  

Only issue here is that this article is out-of-date.  Most of the VC action has already moved on, at least the smart money.  Google's own supposed channel "investment"  was actually structured like old record-company deals in that their 'artists' had to pay back the parent's seed money.  It's easy to get scammed and these crappy web content producers pay their talent sh*t.    

Cable television money dwarfs this backwater junk.  

Machinima may have $35m...  Even a 5th rate cable brand like Spike makes that look like a children's sandbox.  

SimonFraser4
SimonFraser4

The YouTube network bubble is going to burst. Just as the dot-com bubble burst 12 years ago. If you believe the hype, then you'll be in the bubble when it bursts. Signing a contract because of all the money you think it will bring you IS believing the hype.

YouTube networks are middle men. Middle men only offer lubricant. Which is nice and all, but not necessary.

Collaborate with other content creators, keep making content and keep improving your abilities and your content. And when you enter into a contract with someone who offers you lubricant, remember that they work FOR YOU. You are the client, you are the source of the product. They are the service provider. Therefore, YOU call the shots. If a contract doesn't meet with your approval, don't sign the contract. Otherwise, you're in the bubble.

crmartell
crmartell

I'm an ex-machinima director, who had one of those "perpetuity contracts". Coincidentally I said many of the same things in my video as appearing in this article. http://www.youtube.com/watch?v=SOPEYYm_Z-0 The situation looks really dark, but I do have a solution, if the community would just embrace it. Anyone interested should check out my video. 

edohiguma
edohiguma

So basically Vacas signed the contract and read the fine print afterwards. And that with Machinima, which has been known to be itchy, at best, for a while. Good gods. One of the first things I learned in my life was not to do that. Always read everything. Always.

As for this: "Can networks like Machinima and Maker sustain their rapid growth if the creators on whose backs they built their businesses revolt?"

Simple answer is no. Even without the creator revolt unlimited growth is impossible.

krystaBlade
krystaBlade

I just started a YouTube Channel and in less than two months it has over 1500 Subs so I just do not understand why you need an Network Anyway???

HaasGaming
HaasGaming

@krystaBlade Varied reasons. With gaming it is a pretty simple one; licensing. You can't monetize most gaming content (Exceptions exist; e.g. the popular game called Minecraft) without licensing and specific networks provide this. There's a lot more to it though. 

cobrachoppergirl
cobrachoppergirl

This guy is an idiot.  All he has to do is ignore the contract and release videos uner a new pseudonym anonymously.   F your contract.  Contracts can be broken and better yet... ignored.   The US government does it all the time...   just ask the Native Americans... how binding contracts are.

Style101
Style101

Crazy how about working with Blip.tv or Maybe Openfilm.com or they just as evil 

310kidd
310kidd

I think these users would do great creating their own Live content on sites like Stickam.com. It will be a way to get closer to fans and answer questions on the spot. Maybe even find new ways to fangate new users.

invadermak97
invadermak97

I would have been starting my youtube channel in a few days, but this is disheartening and has caused me to reconsider even trying.

HaasGaming
HaasGaming

@invadermak97 Keep in mind these are, in large part, anomalies. I've been partnered with a network (Maker Studios, part of TheGameStation) for a good year now without any complaints thus far. I wouldn't let these problems dissuade you from starting something if you really want it, just be careful - in everything you do - what you sign up for. That being said, it's a lot of work so be prepared to spend a lot of time and you'll need quite a bit of patience! 

chilltowntv
chilltowntv

Agree with you also, @kati.morton  I'm just starting my channel and it's an overwhelming thing to do in general. This definitely is a lot of food for thought...

kati.morton
kati.morton

Thank you for writing this article. It's very interesting for a smaller Youtube creator like myself to see what is going on with MCN's at Youtube...

ryanthomaswoods
ryanthomaswoods

@kati.morton Completely agree with you kati! It was so informative for us as smaller youtube creator's to know what to expect as well as give us an inside look at what is going on.

networkfree
networkfree

From what I can tell, these networks are realizing that their business models are flawed in that they do not own any of the content or the distribution. Even while "owning" a creator's YouTube channel, the networks are actually just renting the channel from YouTube. It's a flawed model when the intent is to add another layer to YouTube's business model. See: Zynga + Facebook.

richardstarr
richardstarr

This also reminds me of the type of contracts still prevalent in the comic book industry.  Greats like Jack Kirby and Steve Ditko have had their work attributed to Stan Lee who acted as the front man for Marvel comics.  Newsflash, the editor of a masterpiece is not the artist and I've never seen any evidence that Lee was anything other than an editor.

In any case, the work from the geniuses of the past have become the "property" of Marvel comics continuing industry "practice" of DC comics who took Superman from Siegel and Schuster when they thought they were only selling the individual STORY instead of the CHARACTER.

The creation of Image comics gave independent creators a venue to produce comics and still retain the rights while giving the company distributing them a fair share.  They need something like this in the YouTube world to help keep the "suits" from stealing from yet another generation.

The open ended contracts and options still exist, to a lesser extent, in the music industry.  You have the rappers getting rich not from their own music, but from the artists they sign, following the pattern of exploitation that they were often the victims of. 

chvyvele
chvyvele

@richardstarr Stan Lee wrote and edited the comic books for all of the characters that he is credited for creating. Steve Ditko and Jack Kirby were artists who helped shaped the story and the characters, but Lee was often the one to create the stories and dialogue. Ditko and Kirby are almost always given credit for co-creating characters.

richardstarr
richardstarr like.author.displayName 1 Like

@chvyvele @richardstarr  

No, Stan Lee is given credit for stuff he did not do.  If you read Jack Kirby's book you will have a better grasp of this.  Too much credit is often assigned to the wrong people.  I'm not say Stan had zero contributions, but for something like the Fantastic Four he would say, "Give me a superhero story based on the 4 elements (fire,water,earth,air) and Jack created the Fantastic Four.  Lee would then modify some of the script Jack created, but did not come up with the story himself.  The credit he takes, now that so many are dead and unable to gainsay him, is far more than he deserves.

 Take a look at the output Lee did after Jack left, and look at what Jack continued to do from that point on at DC.  Kirby was a genius, Lee was a hanger on.  Without the real artists, Lee created nothing.  Credit was only begrudgingly given at times, often after law suits.  Kirby signed away much of his rights to recover his artwork.  Actually, only a portion of it, which was rightfully his.

If there was any justice Kirby would have ended up owning Marvel, but that was not to be.

 
©2013 LA Weekly, LP, All rights reserved.
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