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Crowdfunding a monthly income: an analysis of the membership platform Patreon

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  • Tobias Regner

    (University of Jena)

Abstract

Membership platforms allow creators to crowdfund a monthly income, while campaigns on conventional reward crowdfunding portals aim to reach a specified funding target within a preset period. We study transaction-level data from Patreon, the biggest membership platform, to gain insights about behavioral patterns at this emerging type of crowdfunding. Our analysis shows that hundreds of creators crowdfund a sizable income (more than $2500 monthly). We also find that measures of communication quality are determinants of project success, in line with the related literature. Funding dynamics—pledges as well as deletions—are heterogeneous across campaigns. Our analysis suggests that the option to delete the monthly pledge to a creator at any time serves as a feedback mechanism. We conclude that crowdfunding a monthly income offers the creative class a viable alternative to advertising-based business models.

Suggested Citation

  • Tobias Regner, 2021. "Crowdfunding a monthly income: an analysis of the membership platform Patreon," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(1), pages 133-142, March.
    • Handle: RePEc:kap:jculte:v:45:y:2021:i:1:d:10.1007_s10824-020-09381-5
    DOI: 10.1007/s10824-020-09381-5
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    Cited by:

    1. V. Yu. Anikin & O. Yu. Patlasov, 2022. "Analysis of crowdfunding business models: key advantages of crowdfunding platforms," Russian Journal of Social Sciences and Humanities, Omsk Humanitarian Academy, vol. 16(4), pages 177-187, December.
    2. Crosby, Paul & McKenzie, Jordi, 2021. "Should subscription-based content creators display their earnings on crowdfunding platforms? Evidence from Patreon," Journal of Business Venturing Insights, Elsevier, vol. 16(C).

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    More about this item

    Keywords

    Crowdfunding; Patreon; Funding dynamics; Cultural goods; Membership platform;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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