Last October, Kickstarter announced that its subscription-based crowdfunding platform, Drip, is about to be terminated, but plans are being made for a follow-up project with XOXO festival makers Andy Baio and Andy McMillan. Now, according to the project founders, the project has been discontinued.
Drip's unnamed follow-up project was intended to provide independent artists with "financial stability and transparency." It originated from conversations by Kickstarter founder Perry Chen and Baio, the former CTO of Kickstarter, with the intention to migrate Drip developers there before closing later this year. Kickstarter provided start-up capital for the new platform and hired people to run it, but Baio and McMillan said the concept was a good idea, but "they could not find a way to make the business profitable."
The Problem It seems that what matters is how revenue can be generated in a stable and reliable manner. The pair said they had tested a number of options: "Voluntary user subscriptions, premium features, increased fees," but noted that "the resources needed to support a large number of lower volume developers necessary to exceed our revenues. " [1
Baio and McMillan found that they had closed the project last month and will pay back the remaining entry fees to Kickstarter. Shutting down Drip seems to be on the right track: they say they will help developers migrate to others on the platform.
It's a pity, as their description of the planned activities seems particularly appealing: a subscription platform focused on new and marginalized artists, man-curated discoveries and recommendations, and community moderation tools.