An open letter to James and Alexander

[TPiddy]

Hmmm.... this is my first comment on the entire debacle, so it'll be a long-ish one.

I think the biggest point of contention is over the funds raised from the donations. If Escapist did indeed incur a cost to produce the T-shirts given away then I believe they have a right to try and recover some of that cost. If they chose to recover some of that cost in the form of debt forgiveness then so be it.

However, expecting EC to use the extra money to 'continue producing EC' when EC was owed money for content it had already produced in the first place is a bit rash. I would think the first step in continuing to produce EC would be to PAY PEOPLE, including themselves, and to pay for any guest artists they had to use.

Once that had been done I see no issue with James taking an altruistic approach by using the money to help more people get into the business.

Bottom line, there was never any clear communication on what the Escapist was contributing to the donation drive and what, if anything should be done with any of the extra funds. Woulda, shoulda, coulda, and everyone suffers in the end.

 

[GeorgW]

~snip~

On behalf of the whole community, thanks for talking to us and answering our questions. I think I have a better overview of the whole situation now.
I have a few questions for you if you don't mind, I'm sure you're getting a lot of them.
[li]Who currently owns the IP?[/li]
[li]What will happen with EC on youtube, is it legal and if not will you let it go?[/li]
[li]You claim you have fully paid the $20k/have made arrangements to have it payed. James claims he hasn't received it. What is the current situation here?[/li]
[li]Is there a way to resolve this in a way where EC gets their IP back but you keep publishing their episodes here at The Escapist under a contract you can both agree on? Maybe you could license 10 shows at a time and pay for it up front. It seems that would be the most beneficial for everyone, The Escapist keeps a great show, EC can be secure that they'll get paid, have a good publisher and own their own IP, and us users will know where to find EC as always and can be secure that the show will remain.[/li]

Thanks for your time, love the site and it's an honour to be a mod here.

 

[Archon]

Hey guys,
Thanks for your comments and insights. It's very valuable to me to hear from you on these issues, both in terms of where we've gone wrong and where you think we could fruitfully go. I am regretting that I didn't have a frank discussion about the situation with our site before now - perhaps in a moderated discussion or thread. I think I will do that, but not until things have settled down around here a bit.

As far as the new shows v. old shows thing, one thing I wanted to clear up is that in the last year or so, we have been using a new business model for our video shows. Our old business model was to pay a flat fee for content production plus a bonus for high traffic volume. The new business model for virtually all of our new shows is instead based on a revenue share of advertising.

When we add a show that uses the new business model it actually *improves* our financial situation because the second show is still generating traffic that we can sell ads against, but it doesn't cost us money if we have a bad advertising month. The model is not too dissimilar to YouTube - which also doesn't really lose money when a user posts a video, even if they don't have ads for it.

I hope that makes sense and explains what's going on when we add a new show lately.

We are definitely NOT pressing the accelerator to drive our car off a cliff... Which I suppose makes me at least a better manager than the US Government, though that's small consolation.

I'd like to hold off on further commentary on the other issues discussed here. I would very much like to resolve things amicably and have no wish to add further flame to any fires.

 

[lacktheknack]

Hey guys,
Thanks for your comments and insights. It's very valuable to me to hear from you on these issues, both in terms of where we've gone wrong and where you think we could fruitfully go. I am regretting that I didn't have a frank discussion about the situation with our site before now - perhaps in a moderated discussion or thread. I think I will do that, but not until things have settled down around here a bit.

As far as the new shows v. old shows thing, one thing I wanted to clear up is that in the last year or so, we have been using a new business model for our video shows. Our old business model was to pay a flat fee for content production plus a bonus for high traffic volume. The new business model for virtually all of our new shows is instead based on a revenue share of advertising.

When we add a show that uses the new business model it actually *improves* our financial situation because the second show is still generating traffic that we can sell ads against, but it doesn't cost us money if we have a bad advertising month. The model is not too dissimilar to YouTube - which also doesn't really lose money when a user posts a video, even if they don't have ads for it.

I hope that makes sense and explains what's going on when we add a new show lately.

We are definitely NOT pressing the accelerator to drive our car off a cliff... Which I suppose makes me at least a better manager than the US Government, though that's small consolation.

I'd like to hold off on further commentary on the other issues discussed here. I would very much like to resolve things amicably and have no wish to add further flame to any fires.

Now THIS answers the question of "Why do they keep adding shows like no tomorrow?"

This also explains why the NEWER contributors (Miracle of Sound and Jimquisition) have claimed to have been paid while older contributors are starting to all mention their payment issues as well.

What would it take to get the new payment method for the older contributors? Contract renewal?

 

[ResonanceSD]

Hey guys,
Thanks for your comments and insights. It's very valuable to me to hear from you on these issues, both in terms of where we've gone wrong and where you think we could fruitfully go. I am regretting that I didn't have a frank discussion about the situation with our site before now - perhaps in a moderated discussion or thread. I think I will do that, but not until things have settled down around here a bit.

As far as the new shows v. old shows thing, one thing I wanted to clear up is that in the last year or so, we have been using a new business model for our video shows. Our old business model was to pay a flat fee for content production plus a bonus for high traffic volume. The new business model for virtually all of our new shows is instead based on a revenue share of advertising.

When we add a show that uses the new business model it actually *improves* our financial situation because the second show is still generating traffic that we can sell ads against, but it doesn't cost us money if we have a bad advertising month. The model is not too dissimilar to YouTube - which also doesn't really lose money when a user posts a video, even if they don't have ads for it.

I hope that makes sense and explains what's going on when we add a new show lately.

We are definitely NOT pressing the accelerator to drive our car off a cliff... Which I suppose makes me at least a better manager than the US Government, though that's small consolation.

I'd like to hold off on further commentary on the other issues discussed here. I would very much like to resolve things amicably and have no wish to add further flame to any fires.

Would you be able to post this in the Threadnaught? ( I just saw that term and now I want to marry it)

 

[Archon]

Would you be able to post this in the Threadnaught? ( I just saw that term and now I want to marry it)

I am purposefully staying out of the Threadnaught as my presence there would only fuel the fire. Right now I am hopeful we will reach an amicable settlement with James soon and don't wish to cause further aggravation. I only responded here because it was an Open Letter directed at me. To the extent that the "why are you adding new shows" question has arisen there, you can feel free to cut and paste my response if desired.

 

[ResonanceSD]

Would you be able to post this in the Threadnaught? ( I just saw that term and now I want to marry it)

I am purposefully staying out of the Threadnaught as my presence there would only fuel the fire. Right now I am hopeful we will reach an amicable settlement with James soon and don't wish to cause further aggravation. I only responded here because it was an Open Letter directed at me. To the extent that the "why are you adding new shows" question has arisen there, you can feel free to cut and paste my response if desired.

I'll do that.


(Also, can we make The Threadnaught a thing?)

 

[Sunder845]

I'll do that.


(Also, can we make The Threadnaught a thing?)

The eve-o forums beat you to it.

 

[George Page]

Well said, Alex!

The heart of all this seems to be a misunderstanding--as probably most of us always believed--combined with bad timing, and a little panic. The new payment plan seems to be a good one; lowers your cost and increases the chance of a great month for all contributors. Do you think this might lure old contributors back to the fold?

I would like to point out something. Yesterday, while reading Jim Sterling's response to this whole thing, I followed a link to destructoid.com where he is the editor. Jumping out at me first thing was a big ol' ad for Best Buy. I don't know enough about Jim's site to make a comparison, but if they can get Best Buy ad dollars, why not the Escapist?

Fry's Electronics, Radio Shack, Game Stop, Blu Glo Home Media Systems, Wal-Mart, Target, and even McDonald's are a few big ad-budget companies that come to mind--but some of those may only be big in Texas. Oh, Blockbuster, Redbox, PC World magazine, XBOX, or maybe Apple too could be good.

And just doing a quick check, I don't see any ads at all right now. So... anything could be better than nothing, right?

I'm confident the Escapist will weather this and come out stronger. If nothing else, maybe this could spawn a weekly "State of the Escapist" letter, because it's pretty clear that a lot of your readers are interested in the behind the scenes stuff.

Speaking of behind the scenes, I'm not sure what the demographics are for your readers, but I'm sure there's quite a few business professionals out there. You could start a forum--private, with invites to interested people would probably be best--to get ideas, opinions, and such on how to make the Escapist great on the business side. You'd have to be as open as possible with how the Escapist is set up, etc., but it could produce some great advice. I myself have a BBA degree, and while I wouldn't try to balance your books, I might spot places to cut costs, (though I'm sure there's many of your readers more qualified than me).

George Page

PS, I think it's kickass that you started this right after college to grow it into the great site it is now. Good job!

 

[Irridium]

Would you be able to post this in the Threadnaught? ( I just saw that term and now I want to marry it)

I am purposefully staying out of the Threadnaught as my presence there would only fuel the fire. Right now I am hopeful we will reach an amicable settlement with James soon and don't wish to cause further aggravation. I only responded here because it was an Open Letter directed at me. To the extent that the "why are you adding new shows" question has arisen there, you can feel free to cut and paste my response if desired.

I'll do that.


(Also, can we make The Threadnaught a thing?)

It shall be Threadnaught, the Devourer of Bandwidth!

 

[ResonanceSD]

Would you be able to post this in the Threadnaught? ( I just saw that term and now I want to marry it)

I am purposefully staying out of the Threadnaught as my presence there would only fuel the fire. Right now I am hopeful we will reach an amicable settlement with James soon and don't wish to cause further aggravation. I only responded here because it was an Open Letter directed at me. To the extent that the "why are you adding new shows" question has arisen there, you can feel free to cut and paste my response if desired.

I'll do that.


(Also, can we make The Threadnaught a thing?)

It shall be Threadnaught, the Devourer of Bandwidth!

as far as I'm aware, you're the Threadnaught XO

 

[krellen]

One final thought for you, Mr. Marcis (and the rest of your staff reading this): You might consider changing your marketing focus as well. Everything I've seen coming out of The Escapist in terms of its self-promotion have revolved around Mr. Croshaw. I understand he's your big-money star - but the fact that you treat him like your only star was a major reason I avoided this place for years (I'd come to read the submissions from Shamus Young, and not stick around for anything else), and why I never considered joining the Publisher Club until very recently, to support your non-Yahtzee content.

Quite frankly, Zero Punctuation is my least favourite series on the site (Extra Punctuation tends to be good, so it's not Mr. Croshaw personally), and yet your marketing treats it like it's the only thing to come here for. There's other great things on this site (one less now, unless you can smooth things over with Extra Credits, but you still have Mr. Sterling, Mr. Chipman, Mr. Young, and other series) that never seem to get much spotlight. You may do yourselves a world of good if you stop expressing the "all Yahtzee channel" vibe.

 

[easternflame]

I have one thing to say. I am HONESTLY hurt by all this.
I hate the feeling that the thing was a HUGE misunderstanding and also, in part, miscomunication from both parties. I love the Escapist and I feel it's like a blow to the nuts that it going through tough times. I wish I could do more, but right now I can buy a Pub-Club membership and help you guys out. I love what you are doing. You guys are really epic. I also hope the best for Extra Credits, since it aired(so to speak) I have waited patiently for the show and wish them the best and hope they are successful with their indie publishing brand.

I know you aren't answering anymore but I guess someone will read it, thank you Escapist for the best content out there. I love this site and maybe someday, I'll write a column for it and see it published.

Sincerely
Mr. AwesomeSuperballs AKA EasternFlame.

 

[Robert B. Marks]

Archon/Alexander:

I'm a former contributor to the Escapist (I did not want to stand up and be counted in the payment issues, but it was a big enough problem for enough people that it was the right thing to do for solidarity's sake), and I'm also the owner of a small publishing company. I started my company back in 2007, and I have been slowly and deliberately building it over the last four years. So, since this seems to be a thread where this is appropriate, I would like to speak to you businessman to businessman.

When I was first starting my business, my literary agent gave me one piece of advice: don't expand too fast. And, I haven't. As a result, while the growth of my company has been very slow, it has seen growth every year, and I'm now in a position where I can start contracting out certain parts of the work.

Now, I've read your posts regarding the state of your business, and I noticed that something is lacking in your approach. One of your biggest problems is that you are overextended. You have difficulty paying your contributors as it stands right now, and the Escapist website is so full of content that it is cluttered. When I started contributing, the Escapist had a weekly issue, and then it added Zero Punctuation as a new feature. Right now, there is an active news feed by the Escapist itself with dozens of items per day, comics, videos, and the features you started out with. And, there is a contest in progress to hire new news writers. This is a shotgun approach to content, and quite possibly the last thing you need right now.

(Concrete example: my last article for the Escapist was about my experience reviewing Myth II back in 1998-1999. It was published in March of this year. Within three-four days of the article being published, the Escapist published a news item about it. If it was all about advertising the article, a visible link on the front page would have done the same job without the redundancy.)

The one thing I haven't seen you mention is that you were taking a hard look at your content and seeing what actually works and brings in traffic. This is not 2007, and the Escapist will not be now what it was then. But you seem to be looking at cutting your office costs, and not at evaluating your core strengths when it comes to the content on the site.

So, you asked a general question about what we would do in your shoes. Here is what I would do:

1. Do an analysis of what content brought in the most page views and could be directly tied to revenue. The material that worked and made money would be kept, and what did not would be dropped. The material kept would be the new focus, and new freelance material acquired would be along those lines.

2. Enact a subscription model for the features on the site, using a variation on the Rooster Teeth model. Those who held paid subscriptions would receive the primary content three days earlier than those who didn't, and would also have access to exclusive material.

3. Drop any advertising that did not meet a certain threshold of revenue. At the same time, I would make a public posting that the Escapist was undergoing some hard times, and implement a donation system for those who want to help out. Donors would receive additional exclusive content and/or goodies.

4. Get in contact with every single contributor still owed money, provide a full explanation of what was happening and an apology, and make arrangements to pay off the remaining arrears. (Right now this is a serious problem, by the way. My willingness to contribute to the Escapist ended the minute I had to send an oblique threat of legal action to shake loose payment, and now that this has blown up in public, I have a feeling far more will follow.) I would take out a loan to do this if necessary. I would also institute a payment within 45-60 days system, and write it into the contracts to prove good faith and rebuild trust among both current and potential contributors.

Now, I don't know how deep the hole is that the Escapist is currently in, so I don't know how effective these measures would be in the long run. I hope this is recoverable, as the Escapist is an important voice in the world of video games. Anyway, those are my thoughts on the manner, from the business side. Take them as you will.

 

[Samurai Goomba]

So from where we stand, our options seem to be:
1) Migrate to being a mobile and iPad content company, and hope revenue trends there stay strong
2) Switch to pay-gates for revenue, infuriating many loyal customers who can't afford to pay
3) Change our content to be more mainstream to attract ads, and lose our old core-gamer focus
4) Stop paying for content and be like HuffPost, losing the quality of our content producers
5) Something I haven't thought of

What would you do in my shoes?

That's probably more business discussion than you cared to hear, but I figure that since this situation has shined a spotlight on our business, more transparency is always better.

Option 4, but do it right. Tell people straight up that anyone can apply for a position writing or making videos for the escapist, but the only jobs are volunteer ones, and the only "pay" is greater name recognition and a byline. Cut the paid staff who aren't making you much money, or tell them they have the choice of switching to volunteer status if they want to keep creating. Free content isn't bad content. Look at YouTube, the place you poached most of your talent from. Most of them weren't making any money uploading to youtube-they did so for other reasons than money.

Paygates won't work because your audience is too small, in my opinion. Following trends? I dunno, maybe. Like you said, it's a fad. Go mainstream? Sure, but don't pretend you're a games journalism website on par with IGN or Kotaku if that's the way you want to go. It would seem pretentious. Option 5 is probably the most promising.

Anyway, 3 and 4 are the best ideas you have there, in my opinion. Also, keep cutting costs. By firing staff, I don't mean "fire the people in that office with you," I mean, don't hire new shows you can't pay for and fire your content contributors who aren't pulling in big bucks. Sometimes to run a company, you have to be ruthless.

 

[Hides His Eyes]

While I agree that both sides seem to be very much at fault, it is hard not to pick sides with something like this. I have to say, based on everything I've seen - which might all be bullshit for all I know, but assuming it's not - I'm edging towards EC's side on this. Partly because Escapist seems to have been taking the piss not paying EC, and partly because they seem much more eager to turn the thing into a PR war than EC. Also, EC is the kind of content that makes the Escapist great. Without such content the Escapist is nothing.

But bloody hell, what a fucked up situation. It completely passed me by, I was wondering why there hadn't been a new EC video in a while.