Machinima Issuing 10-Day Ultimatums: Accept Less Money or We Drop You


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Reports from Reddit indicate that certain Machinima partners are receiving ultimatums: accept a lower CPM, or the network drops you.

One such notification, pictured above, frames the issue as price regulation, informing the partner that he was previously receiving above-average compensation. The email reads:

“Throughout the length of your partnership, we have provided you with an above average CPM to incentivize your creative efforts and to fuel further growth with your content career, but at this time we need to adjust your CPM to a rate that reflects your channel’s current profitability in order to continue our partnership.”

CPM, or cost per mille, is how much money a partner earns per thousand video views. The anonymous Redditor who posted the image claims that his CPM was not above average, but instead at a standard rate of $2. The Redditor also claims the new rate Machinima offered was 60% lower than his current rate.

What if he refuses? The email goes on to say:

“Our primary goal is to team with you in order to agree on a mutually beneficial solution. That said, per the terms of our current agreement, we hereby notify you that such an agreement will terminate effective January [date withheld] 2013 unless we are able to agree upon terms prior to that date.”

While the date is withheld to protect his identity, the Redditor asserts that Machinima offered a 10-day notice.

Other Redditors have corroborated the news, though not all partners may be affected. Speculation suggests that a few of Machinima’s popular partners banded together and informed the network that they’d leave if their compensation wasn’t increased, which has led Machinima to lower its rates for other partners; Game Front cannot comment on the legitimacy of these rumors.

If you happen to see content creators you follow leaving Machinima this month, this may be why.

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6 Comments on Machinima Issuing 10-Day Ultimatums: Accept Less Money or We Drop You

SevenCell

On January 9, 2013 at 12:45 pm

More evidence.
I’ve always hated Machinima.

Not True

On January 9, 2013 at 1:44 pm

“Speculation suggests that a few of Machinima’s popular partners banded together and informed the network that they’d leave if their compensation wasn’t increased, which has led Machinima to lower its rates for other partners; Game Front cannot comment on the legitimacy of these rumors.”

This is not true. As someone who used to work closely with Machinima, I’m sure this change is occurring is because they were losing money on the partners receiving the e-mail. Not everyone deserved the $2 CPM based on how much the channel made, and now Machinima has to remedy that.

Kevin

On January 9, 2013 at 4:19 pm

Didn’t they kinda forsee how this would make them look bad?

In today’s social media world, you kinda have to take into account how things are worded and who things get sent to.

Tjr

On January 12, 2013 at 6:00 pm

It seems like its the few douchebag popular channels that are using their popularity to get more money. They already make mad bank if they are popular enough to force a company like Machnima to comply with them. Plus all they do is play video games and upload them and work way less than the average person. Plus they are their own boss and get to work on their own time. Most big youtuberd have it so easy and would have a hard time adjusting to working 40 hours a week. If the rumor is true that they few main channels told machinima to jack up their rates, than I blame this on them. I hope they can’t live with the guilt of being douchebags and taking other people’s money because they can.

quicktooth

On January 23, 2013 at 5:58 am

Even the guy who makes the wildly popular Freeman’s Mind and Civil Protection has been forced by Machinima to look for a new job, after Machinima suddenly changed their requirements on his videos. The change might mean most of his videos get taken offline. His series are WILDLY popular and high quality. If he can be told “Do It Our Way Or GTFO” at the such short notice, and even be forced to look for new employment, no one is safe. And now Machinima wants to pay it’s people ASTONISHINGLY less? Are these people actively suicidal in their buisness?

coch

On April 4, 2013 at 2:38 am

I left. There are lots of sponsors out there, that offered me more.