The Real Reason MatPat Quit YouTube

Added: Feb 6, 2024

Personal Reflections and Challenges in 2018

In 2018, Matt and Stephanie experienced significant challenges that led them to reevaluate their priorities. They welcomed their son, faced the tragic loss of an editor to suicide, and dealt with financial losses due to the collapse of a company they were involved with. These events forced them to confront the fragility of life and the importance of focusing on what truly matters. These difficult moments prompted them to set new priorities and consider their long-term goals.

Transitioning from Creators to Managers

As their YouTube channels grew, Matt and Stephanie found themselves transitioning from creators to managers of a media company. They realized that as the channels expanded, their roles shifted from being hands-on creators to overseeing a team and managing various aspects of the business. This shift in responsibilities made them reflect on the nature of their work and the impact it had on their creative process.

The Value of Authenticity and Connection with Audience

Throughout their career on YouTube, Matt and Stephanie emphasized the importance of authenticity and connection with their audience. They recognized the significance of maintaining a personal touch in their content, even as the channels grew and evolved. They understood that their audience valued their unique voices, personal stories, and genuine interactions, which contributed to building a loyal fan base over the years.

The Decision to Retire and Pass on the Channels

After years of creating content on YouTube, Matt and Stephanie made the decision to retire from their channels and pass on the reins to their team. This decision was not made lightly and was influenced by a combination of personal and professional factors. They wanted to ensure that the channels continued to thrive while allowing themselves the opportunity to explore new projects and opportunities outside of YouTube.

Building a Team and Work-Life Integration

Matt and Stephanie talk about the growth of their team over the years, from starting with a few employees to now having a larger team of full-time employees and freelancers. They emphasize the importance of hiring the right people and creating a supportive and creative work environment. They also discuss the challenges of work-life integration, especially in a creative industry where personal identity is closely tied to the work being produced.

Hiring Process and Team Building

The couple shares insights into their hiring process, which has primarily been through word of mouth and recommendations from other creators. They also discuss the role of a recruiter in helping them find high-quality candidates and the importance of hiring people who are familiar with the platform and industry. They highlight the need for team members to be flexible, creative, and able to adapt to the fast-paced nature of YouTube content creation.

Brand Identity and Content Creation

Matt and Stephanie touch on the DIY aspect of their brand and how it influences the look and feel of their content. They discuss the balance between aiming for perfection and maintaining authenticity in their videos. They emphasize the importance of sustainability and efficiency in their production process, as well as the benefits of filming in their own home to maintain a personal connection with their audience.

Creative Direction and Decision Making

The couple talks about the role of creative directors in their team, who act as mini versions of themselves for each channel. They explain how creative directors help spearhead the creative direction of the content and provide valuable input and feedback. They also discuss the decision-making process, where ultimate decisions are made by Matt and the creative directors, ensuring consistency and quality in the content produced.

Challenges and Growth

Matt and Stephanie reflect on the challenges they have faced as creators and business owners, including the pressure to constantly innovate and stay relevant in a competitive industry. They discuss the evolution of their channel and the shift in their goals from chasing numbers to focusing on creating content they are proud of. They also talk about the responsibility they feel towards their team and the importance of providing opportunities for growth and development.

Going to Market and Suitors

Matt and Stephanie were approached cold by several companies interested in buying their YouTube channel. They were initially unprepared for these conversations and had to educate themselves on the valuation process. They sought professional help from a banker and learned about the different aspects of selling a media business. They engaged with 10 different companies, each with a unique approach to acquiring their channel. Some were interested in specific verticals like gaming or food, while others wanted to integrate their content into their existing digital video production.

Revenue Pie Chart and Valuation

The revenue pie chart of their business included AdSense revenue, brand partnerships, and other sources of income. They had to define what they were selling, including the intellectual property rights of their channels and the format of their content. They also had to consider the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of their business, which was a key factor in determining the valuation. The revenue multiple on a YouTube channel or media business can vary based on the stability and potential for growth.

Control and Financing

Matt and Stephanie decided against other financing options like VC funding or Patreon because they wanted to maintain control over their business. They believed that taking external funding would come with additional responsibilities and oversight, which they were not willing to compromise on. They preferred to have a profitable and sustainable business model that could withstand market volatility without the need for external financing.

Sustainability and Scalability

The success of their business was attributed to smart, sustainable growth and a low overhead cost. They focused on building a scalable media brand that could adapt to changing market conditions. By hiring a talented team with translatable skills, they were able to expand into new verticals like Food Theory and Style Theory without significantly increasing production costs. This approach allowed them to maintain consistency across their channels and keep the brand identity intact.

Key Entity Risk and Succession Planning

Matt and Stephanie were upfront with Lunar (the company that eventually bought their channels) about their succession plan and the key entity risk associated with their departure. They had already identified and trained creative directors within their team who could take over the channels in their absence. They presented data to show that the new hosts were well-received by the audience and that the format could continue successfully without their direct involvement. This proactive approach reassured Lunar and demonstrated the brand's potential for growth and sustainability.

Data and Launching New Channels

Having data around launching new channels and verticals was crucial in showcasing the brand's ability to expand and reach new audiences. The success of their format and the positive reception of new hosts and scripts provided evidence that the brand could travel and spread across different verticals. This data-driven approach helped them demonstrate the scalability of their business and the potential for launching new channels like Fitness Theory or Tech Theory in the future.

Launching New Channels

The duo shares their process for launching new YouTube channels, emphasizing the importance of research and preparation. They talk about creating a playbook for channel launches, studying the verticals they want to enter, and developing a year's worth of content ideas before launching. They also discuss the significance of having a strong initial burst of content to engage viewers and drive traffic to the new channel.

Roles at Theorist Media

Matt and Stephanie explain their roles at Theorist Media, with Matt serving as the Chief Creative Director and Stephanie as the Brand Supervisor. They discuss their responsibilities in overseeing the creative direction of the channels, mentoring the creative directors, and ensuring smooth production pipelines. They also mention the potential for other team members to take on leadership roles in the future.

Happiness vs. Interestingness

The hosts share a concept they learned about the opposite of happiness not being unhappiness but interestingness. They discuss how pursuing an interesting and hectic lifestyle can lead to less happiness, while simplicity and contentment in everyday life can bring more joy. They emphasize the importance of finding a balance between pursuing interesting experiences and finding happiness in simplicity.

The Era of Excess and the Shift Towards Simplicity

Matt and Stephanie talk about how YouTube has evolved over the years, from the era of excess where everything had to be the biggest and the most, to a more simplified approach. They mention how creators like Ryan Tran represent the move towards simplicity and human connection, which was foundational to the success of early YouTube. They discuss the swinging pendulum back towards embracing relatability and human connection in content creation.

The Influence of Shorts and TikTok on YouTube

The guests talk about the role of shorts on YouTube and the influence of TikTok on audience behavior. They mention how shorts have taken over more of the feed and how TikTok has captured audience attention with its quick-hit content. They discuss how the rise of shorts and TikTok has led to a shift in viewer loyalty towards platforms rather than individual creators. They highlight the challenges creators face in standing out in a crowded and fast-paced content environment.

Creator Advocacy and Data Analysis

Matt and Stephanie emphasize the importance of creator advocacy and using data effectively to measure success on YouTube. They discuss the need for creators to set specific goals for each video and analyze data to track performance. They mention key metrics like average views per video, returning viewers versus new viewers, and average view duration. They stress the importance of understanding the wider context of data and experimenting with different types of content to achieve specific goals.

The Decision to Retire and Leaving a Mark on YouTube

The guests talk about their decision to retire from hosting their YouTube channels after 13 years. They reflect on their impact on the platform and the role they played in shaping the digital media landscape. They express gratitude for the opportunity to steward their audience through various content and teach them valuable lessons. They discuss the privilege of being early pioneers in the industry and their hope to leave the platform a little better as a result of their work.

The Legacy of Their Channels and Future Plans

Matt and Stephanie discuss the legacy of their channels and the impact they have had on their audience. They talk about the importance of being good role models for future generations of creators and leaving a positive mark on the platform. They express excitement about the future and the possibility of returning to content creation in a different capacity.