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Defy Media Steals $1.7+ Mil from YouTubers
By Kasaix • 5 years ago


If you're out of the loop, MatPat of The Game Theorists brings us up to date. Now, if you're not a fan of MatPat, but are also not a fan of greedy corporate types and banks who couldn't give a damn about the common people, you should still stick around. MatPat does a great job of explaining what MCNs, or Multi-Channel Networks are and what they do. TL;DR, not a god damn thing. MCNs somehow represent YouTube channels, and YouTube cuts them a check for all these channels, so the MCN pays the channels. If that doesn't make a whole lot of sense, you're not alone. It used to be, if you wanted to be a YT partner and make money, you needed to sign up with an MCN. It's not a sustainable method,  Disney fell for it and lost a huge chunk of money when they bought out an MCN. 





Above, MatPat breaks the situation down, shows how MCNs work, his own experience with them, and how Smosh got royally screwed over. Defy Media, who bilked a lot of good YouTubers out of their hard-earned money, went belly-up. They owed a lot of money to a lot of people. Ally Bank, their bank of choice, is sifting through the ruins to pay people back, including themselves. Unfortunately, Defy Media had a lot of channels under their umbrella, and YouTube cut them a check so Defy Media could pay them. Well, Defy never paid the YouTubers, and that money, $1.7 million dollars, which as MatPat will explain is a low estimate, is in the bank with Defy's name on it. It's not Defy's, but Ally has shown no sign that they care.





MatPat breaks down how bank investments work, reiterates how Defy screwed some good people over, and takes Ally bank to task for not doing the right thing and giving the YouTubers their hard-earned money. As MatPat says in the above video, Ally is trying to make it seem like Defy hit them as hard as the YouTubers. This is absolutely false. No word yet on if the YouTubers are going to get their money, but Ally's twitter feed is littered with people speaking up for the YouTubers, so the heat is on.