CollegeHumor, a comedy website owned by holding group IAC, is launching DROPOUT, an ad-free subscription service.
Why it matters: It's the latest example of a publisher creating a new revenue stream and a new way to connect with its audience. Many internet users have become frustrated with advertising, and are willing to pay for content they like on a subscription basis.
Details: For now, the service is launching in beta. It will cost $5.99 for month-to-month access, $4.99 for six months and $3.99 for 12 months.
- It will be catered to the site's niche audience of millennial mobile video consumers.
Driving the news: Like many other digital publishers, CollegeHumor is hoping to diversify its revenue stream with this offering.
- About 40% of its revenue comes from advertising and about 60% is tied to content licensing through its production studio.
- An executive tells Axios that the company has doubled its revenue in the past five years.
The big picture: CollegeHumor follows a number of IAC-owned publications moving into a subscription or membership model, such as The Daily Beast and Vimeo.
"In order for us to build a competing business within IAC banner, we don't need millions upon millions become members. We can be successful creating value at IAC at a number less than that."— Shane Rahmani, Chief Business Officer
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