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Patreon lost the biggest lawsuit of his life.

descarregar.jpg (8.0KiB, 275x183) save_alt - This community is based on Patreon accounts. Without Patreon, this site does not exist. See this video, Patreon lost an extremely important lawsuit and just one or two channels that were banned by alt-right posts or opinions, or better, any creator who closed his account before a certain date, can enter a equal process and Patreon will be required to pay these costs in court.

If that happens, Patreon will end because he doesn't have that amount of money. The site may go bankrupt because of the because of the excessive censorship that the SJWs did. Because they can't deal with what they don't like to read. One or two processes is enough. If the site ends, the creators and this community will end. There are 2 more creators who have announced that they will file a lawsuit against Patreon on their twitter.

The revenge of the alt-right will end this site. And the guys you threw out of here didn't even have to do anything. The SJWs and the censorship Left did was enough.

It was good while it lasted.

The ban that started this was a comedian who just said that children should not be forced to take gender blockers because their parents are brainwashed into thinking they have a special child and they wish to gain fame from vicariously. Patreon suspended the account because of this common sense. And he lost the process. Because of their fault, they dug their grave and now thousands of creators without any fault can lose their channels too. Because some SJWs didn't know how to deal with that sentence above.

There is no such thing as hate speech, only speech you disagree with. And because there are people who don't deal with it, hundreds of creators can be without their platform. It is dependent on the same people they tried to censor. And they can do nothing about it.

Well, at least were going to get subscribe star support now

So you agree,the real problem are those bigoted alt-right persons

Also,do you really think Patreon will end just because a few amount (maybe dozens) of people will exit because one creator made a transphobic commentary.
If someone exit,it'd be those bullshit political,reaction or real life content creators that are such a snowflake that when someone or a lot of people says they said something wrong,they simply go screaming "I'm being censored" or shit like that

What is the part of "Patreon is obliged to pay court fees and he doesn't have that money" that you didn't understand? The only escape if this happens is to end the company and file for bank insolvency. Bankruptcy. This means that the website is shut down.

It means the company is sold.
Company stays, transferred to different owners.

Alternatively, it will take out loans or sell shares. What you are suggesting is like smashing all the vases in a china-shop because the owner's in debt. Patreon is a profitable asset that requires very little upkeep... its very domain name is likely worth more than a quarter of a million at the moment.
if any of you children knew how business worked, or earned money of your own, you would know this.

Hopefully other owners won't try to censor outside their sites and drive their silly whims deep into their asses. Otherwise it won't make sense anyway

They won't do this necessarily... they'll just include terms in their TOS to allow them to arbitrarily ban creators... they won't change their actions, they'll change the existing agreements...
Patreon got screwed because it failed to deal with the arbitrations as a group, instead of singularly... (which I am somewhat pleased about. ironic, given how arbitration law often favors corporations in terms of outcome as well as being able to break community lawsuits)
But, what this means is that they'll just kick the can down the road, and now say that it'll be at their discretion whether arbritation is dealt with singularly or in groups...

Best option would be to just hop on board Memberful or something, since that's an easily packaged and resellable asset that can be split off Patreon, regardless of whether they go Chapter 7 or Chapter 11... they'll need more than Memberful, either way, to handle the lawsuits... although, given they take ~$50 million or more a year, they'll go Chapter 11, since the idea of this "bankrupting" Patreon is somewhat overblown... They'll get back to profitability in a year or two, sell off some assets, scale down their teams, etc.
It will likely get their shareholders off their ass as well, since shareholder pressure has been forcing Patreon to expands its offerings to include things straying away from the core customer experience for a while now... shareholders tend to ease the reins when they've got a chance of not losing their investment in its totality...
However, if they take held assets intended for creators, there'll be a mass exodus, so they'll only go for that as a last resort...

Creators would be advised to withdraw any earnings currently held by patreon immediately (thankful auto-withdrawal is a thing)

Lmao what makes you think Patreon can't pay these money? As far as I know, there is about 10,000$ payment to around 100 people it has to pay by loosing this case. Not too much for a company like this, it definitely doesn't look like it's the end for them.

yes, the problem with patreon is that they aren't sucking off facists.
not at all that they're going ban-crazy over porn.
you know, what this website is primarily for?

why not? because most companies avoid having liquid capital at all cost. that $10,000 is a fee that it must front for every single one of those 100 arbitrations spawned from the banning of a single creator. That's not including the judgement. That's $1,000,000 just to get a ruling from the arbitrators. So, if Patreon wins 100/100 of those arbitrations, it still costs them $1,000,000.
The issue is that Patreon banned half a dozen or more large creators, many with a larger following than the internet irrelevancy that is Owen Benjamin. What you might find is that there'll be roughly 1,000 arbitration claims, which will cost $10,000,000 just to have seen and heard. Patreon needs that money, and a court has ruled it needs to pay that up front. That is hard for a company twice Patreon's size.
And if it loses any other lawsuits, is found liable, etc. That initial $10,000,000 cost is going to balloon.
If it wants to pay lawyers, that's another couple million dollars, right there. And it will shell out for that, because without it, it will lose.
There's settlements as well.
And, worst of all. Nuisance claims. Not many, but probably 100 or so... enough to muddy the waters now that people have seen that patrons can sue patreon for banning creators. That's another $1,000,000 right there.
You can estimate the costs of it all at $15,000,000-20,000,000

So, yes, the company has a Net Worth of $450,000,000... but that's not extractable. That's its projected value over its remaining lifetime.
It processes $500,000,000 a year, but it only gets $50,000,000 of that.
It's takes $50,000,000 a year, but its operational costs are likely 70% of that (profits for most business are 30-40% of gross)
So, its profit is, in reality, $15,000,000 a year.
Does that go to Patreon? No.
Patreon has private shareholders (i'd estimate 50-70% given that it's absorbed ~$150,000,000 of investor money (yes, advertising is expensive)).
So, in reality, Patreon is making $4,500,000-7,500,000 a year.

That still sounds like a lot. It is. But it'll take 2-5 years to recover from it.
And there's the fact that there are other membership platforms out there. But they haven't been hit by a lawsuit. Lacking capital, Patreon can't compete. This is lost opportunity cost.
Ultimately, this lawsuit might cost $15,000,000-20,000,000 up front, but in its repercussions, it's going to hit in at about $80,000,000-100,000,000 in fees and lost opportunities.

No, this is not the end of Patreon. This is just a sledgehammer to the knee, preceding years of intensive physical therapy before it can run again.

don't sue consumers in the state of california

do note though that most of the stupid decisions are the result of shareholder pressure, specifically the kind that demands patreon kill the goose that lays the golden egg because the shareholders demand that profits increase EXPONENTIALLY, forever, despite the fact that, without interference, patreon's model basically generates free money for as long as the website's up

so expect them to do something phenomenally retarded to try to get double what they paid in the settlement and doom the website.


I suspect this is one of the reasons patreon began banning its porn scene... It was trying to turn patreon into a tumblr-esque white bread subscription platform under shareholder pressure in order to get "mass market appeal" and "capture the market".
Patreon is and was immensely profitable (it's essentially a money printer) and once it's running, it requires only minor upkeep to keep in service... heaven knows why they would try expanding it in ways that any person could tell weren't going to work...
Them banning lewd patreons basically created subscribestar and onlyfans... so, ironically, they cut themselves out of the market, where they could have instead phased out creators from Patreon to an in-house nsfw subscription website... dumb.

Then there's the customer interface problem. Oh well.

They failed to accept that increased user friendliness (text resizing, dark mode, improved text editors, pagination (all incredibly easy and cheap to add)) would have yielded far more returns than trying to reach mass market appeal by going full-tumblr.
One of the biggest complaints I've heard about Patreon (from people who actually support on there) is it's ugly as fuck to look at for more than a minute and loading really old, low down posts takes forever. Also, the text editor basically genocides formatting.

Giving usability options to creators and patrons would be far better than what they're about to do. Since that's what attracts creators and retains patrons.
Also: You might also like XYZ... No idea why they haven't done something like that yet...

shareholders or the one venture capitalist trying to quickly boost patreon growth before flogging it off for a profit?

patreon was basicly printing money in its early years with the likes of sakimichan and kronprinz(?) bringing all the boys to the yard. when did it go horribly wrong?

racist.jpg (9.0KiB, 225x225) save_alt

>There is no such thing as hate speech

also, merch, really? dammit patreon, why you wasting money picking fights with cafepress and redbubble. just stick to drawn tits and ass.

>This guy is racist because he offended me


holy cringe
go back