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Chronicles

The story behind the story

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Louis C.K. Comes Back to HBO, but Doesn't Ditch the Web, Either

Last year Louis C.K. earned the love of the Internet by cutting out the middlemen and selling his comedy special directly to his fans, over the Internet.  —  Other comedians — and at least one start-up — followed in his footsteps.

AllThingsD Peter Kafka

Context & Ripple Effects

Louis C.K.'s return to HBO caps a two-year arc that began when he bypassed distributors entirely with his $5 self-released special, which he reported sold 110,000 copies at a $200,000 profit within three days. By March 2012, The New York Times was documenting how other comedians had followed him onto the web, making his model a template rather than a one-off experiment.

First-order effects

  • HBO regains an exclusive-TV-caliber name it had lost to the open web, while Louis C.K. keeps both channels: the network's reach and his own direct-sales storefront.

Second-order effects

  • Other comedians who copied the direct-to-fans model now have proof that web success does not preclude traditional TV deals, weakening the either-or framing networks previously held over talent.

Third-order effects

  • If premium talent can hold network deals and independent storefronts simultaneously, the exclusive-distribution assumption underpinning pay-TV's value proposition starts to erode.

The trend: Comedy distribution is splitting into a hybrid era where performers negotiate with networks from a position of proven direct-to-fan independence.