Clash Startup Case Study: Empowering Creators, Then Closing Down – A Short-Form Revolution That Couldn’t Stand the Test

Clash

Clash was a fan-centric short-form video platform that aimed to help content creators connect directly with their most loyal supporters. It offered monetization features often missing from mainstream social media apps, providing a unique and personal creator-to-fan experience.

Founding Year: 2019

Headquarters: West Hollywood, California, USA

Industry: Information

Status: The company is currently closed

Business Model

B2C, Two-sided, Product

• Clients: Content Creators; Primarily musicians and video creators seeking alternative monetization methods beyond traditional platforms like YouTube, TikTok, and Instagram. These creators value direct fan support and building closer relationships with their most loyal followers.

It’s Like: Patreon but for Short-Form Video

Patreon is known for enabling creators to earn directly from fans with subscription-based support. Clash took a similar approach but applied it to the short-form video realm, allowing creators to monetize via “Drops” and “Fanmail” features, emphasizing direct engagement rather than ads.

Founding Story

ClashApp was founded in 2021 by a team led by Brendon McNerney and PJ Leimgruber, who previously collaborated at NeoReach, Inc. The platform was created to provide creators with better tools to connect with their most dedicated fanbase and monetize their content.

McNerney, a former Vine creator with a substantial following, brought his firsthand experience in content creation and community building to the project.

Leimgruber, a digital marketing expert, provided his expertise in audience engagement and monetization strategies.

The development of Clash was influenced by the potential ban of TikTok in the US, which created an opportunity for alternative short-form video apps to emerge.

The app aimed to capture the attention of creators and users who were dissatisfied with TikTok’s policies and direction.

In January 2021, Clash acquired Byte, another short-form video app founded by Dom Hofmann, co-founder of Vine. This acquisition merged the user bases of both apps and brought Hofmann on board in an advisory role.

Key Growth Milestones

• 2019: Clash is founded by Brendon McNerney and PJ Leimgruber.
• 2020: Clash launches, gains 200,000 users, and ranks high in the App Store.
• January 2021: Clash acquires Byte.
• Later in 2021: Clash launched the “Huddles” feature, attracting over 10,000 new users.

Market & Competition

Target Market

Clash focused on a niche within the broader short-form video market, specifically targeting:

• Content Creators: Individuals seeking to monetize their content and build closer relationships with their most dedicated fans.
• Gen Z and Millennial Users: Known for their high engagement with short-form video content and willingness to support creators directly.

Market Size and Growth:

• Global Market Value: Projected to reach USD 289.52 billion by 2032.
• Key Drivers: Increasing popularity of user-generated content, the rise of influencer marketing, and widespread adoption of smartphones.

Potential New Markets:

• Niche Communities: Targeting creators and fans within specific interests or industries, leveraging the platform’s community-building features.
• Brands and Businesses: Offering influencer marketing opportunities for brands seeking to reach engaged audiences through creator partnerships.

Growth Trends:

• Closed Communities: Clash’s pivot to Huddles, a group chat platform, indicated a potential trend towards more closed and community-driven interactions.
• Direct Fan Support: The willingness of fans to support creators financially through features like Drops and subscriptions suggests a growing trend in direct monetization models.

Competitor Landscape

Clash operated in a highly competitive short-form video market, facing competition from both established giants and emerging players:

• TikTok: The dominant player in the short-form video market, known for its massive user base and algorithm-driven content discovery.
• Instagram Reels: Integrated into the popular Instagram platform, leveraging its existing user base and features.
• YouTube Shorts: YouTube’s entry into the short-form video market, capitalizing on its vast creator network and video infrastructure.
• Triller: Focused on music-related content and featuring licensed music integration.
• Dubsmash: Known for its lip-syncing features and popular among younger demographics.
• Likee: A global platform with a strong presence in emerging markets.
• Kwai: Another global competitor with a focus on localized content.

Marketing & Sales

Main Positioning Values: Creator-centric ecosystem, focusing on sustainable income opportunities and authentic fan interactions.

Website & Platforms

Official Clashapp.co website traffic metrics are already unavailable.

Clash initially launched with a user base of 26,000 and rapidly grew to 200,000 users within a short period.

The app’s climb to the #2 spot in the App Store rankings for photo and video apps and its #17 overall ranking further illustrate its initial success.

Media Coverage

• Tubefilter: Covered Clash’s launch and its focus on creator monetization.
• NeoReach Blog: Featured Clash as a case study, highlighting its features and early success.
• dot.LA: Reported on Clash’s rebranding to Huddles.

Marketing Strategies

• Target Audience: Clash primarily targeted content creators, particularly those on platforms like TikTok and Instagram, seeking to monetize their content and engage with their most dedicated fans.
• Customer Acquisition:
  • Leveraged the potential ban of TikTok in the US to attract creators and users seeking alternatives.
  • Acquired Byte, another short-form video app, to merge user bases and gain traction.
  • Emphasized creator monetization features like Drops and subscriptions to attract creators dissatisfied with existing platforms.
• Marketing Methods:
  • Highlighted the app’s unique value proposition of direct fan support and community building.
  • Utilized influencer marketing, leveraging co-founder Brendon McNerney’s existing following.
  • Focused on public relations, securing coverage in industry publications like Tubefilter and Business Wire.

Product & Innovation

Clash’s core innovation was its dedication to creator monetization and community building. Unlike platforms reliant on advertising revenue, Clash prioritized direct fan support through features like Drops and subscriptions.

This “no barrier to entry” approach allowed creators to earn money regardless of follower count or engagement metrics.

Financials & Metrics

• Revenue Sources: Clash primarily generated revenue through in-app purchases of “Drops,” a virtual currency that users could purchase and then use to tip creators or pay for premium features like Fanmail.

Impact & Success

• Success Stories:
  • Creators used Clash’s features, like Drops, to earn an average of $204 per month, with the highest earner making $1,500 in a single month.

Growth & Future

• Challenges and Risks:
  • Intense competition from established short-form video platforms like TikTok and Instagram Reels.
  • Difficulty in achieving sustainable monetization for the platform and its creators.
  • Adapting to the evolving user preferences and trends in the social media landscape.

Key Takeaways for Entrepreneurs

• Don’t compete with giants, niche down: Instead of trying to outdo established platforms like TikTok or Instagram, Clash cleverly identifies and caters to a specific, underserved segment —creators’ true fans willing to pay. This niche focus allows for greater impact and faster growth.
• Turn problems into opportunities: Clash capitalized on the potential TikTok ban, showcasing adaptability and the ability to leverage current events to their advantage. Always be on the lookout for market shifts and how you can position your startup to benefit.
• Direct monetization is key: Clash recognized creators’ desire for sustainable income beyond traditional ad revenue. Offering direct monetization options like “Drops” and FanMail empowers creators and fosters stronger fan relationships. Prioritize clear, valuable monetization strategies from day one.
• Leverage existing networks: Clash smartly utilized co-founder Brendon McNerney’s existing influence to gain initial traction. Don’t underestimate the power of your network – leverage it strategically for marketing, partnerships, and early adoption.
• Content quality over quantity: Clash’s model suggests a future where quality content finds its value through direct fan support rather than chasing mass appeal. Focus on building a dedicated community around high-quality offerings, even if it means starting smaller.