Zarta, a new ad-free creator platform focused on pay-per-view video content, announced today that it has closed a $5.7 million seed round led by Andreessen Horowitz (a16z). The platform allows creators to upload videos, set parameters for a free preview, and then charge viewers a small fee to unlock the entire video. Zarta is currently in limited alpha testing with a small number of creators, with plans for a wider launch later this year.
The company was founded in 2021 by YouTube creator and former Airbnb software engineer Luba Yudasina. She told businesskinda.com in an interview that much of the inspiration behind Zarta came from her own personal journey as a creator. Yudasina wanted to monetize her content in ways other than sponsored brand deals and subscriptions. While she initially wanted to start a Patreon, Yudasina heard from creators that it can be difficult to continuously pump out exclusive content for a small percentage of your audience, and that it can get expensive for viewers to subscribe to all of their favorite creators .
Yudasina then decided to create Zarta to give creators a new way to monetize through microtransactions while better serving their fans with authentic content. She believes that good content from creators will not be supported solely by advertising or subscriptions in the future, and that Zarta has the potential to enable this transformation.
Creators on Zata can upload a long video and select how much free preview to give viewers. The company believes that users should be able to preview content before paying for it, and that creators know their content best and can decide when the paywall appears. Viewers can watch as many free previews as they want, but if they want to watch an entire video, they have to pay a small amount to unlock the full video. As part of the alpha test, the cost to watch a full video is less than $1.
Creators receive 75% of the payment, while Zarta keeps 25% to cover operational and processing costs. Zarta is committed to giving creators a greater discount on payments in the future.
Image Credits: Zarta
Once a viewer has paid for a video, they can watch it again at any time. Users can create a personalized library of content they have conscientiously decided to consume. The company believes the idea of conscientious media consumption is important, as most popular apps and services are designed to keep users on their platform for as long as possible.
“We have a mindset that we’re not going to be a platform for every creator out there in every use case,” Yudasina said in an interview. “We are very focused on creators producing valuable content in niches. Think about your favorite automaker or Dungeons and Dragons maker. People who aren’t necessarily focused on growing at all costs and probably aren’t the next Mr. Beast will be, but have a strong and loyal community and produce value for their audience and may not have as many opportunities to make money as people who make a lot of money through AdSense or branded deals. These are the types of creators we are targeting and want to serve.”
The premise behind Zarta is not to get creators to use it as their sole platform for creators. Yudasina believes there will always be a place for companies like YouTube and Patreon, and that Zarta is striving to expand the possibilities for creators. Zarta’s goal is to be part of the creator ecosystem, rather than aiming to replace current players.
Yudasina’s vision for Zarta is being demonstrated by creators currently testing the platform. Ian Bennett, who is in charge Eternal philosophy channel on YouTube and currently testing Zarta, businesskinda.com told businesskinda.com that while YouTube and Twitch are monoliths in the creator industry and do what they do very well, he believes there are obvious holes in the industry that Zarta is trying to remedy. He creates some exclusive content on his Patreon and uses Zarta to bring those videos to people who can’t afford the monthly subscription fees. Since much of his audience is made up of college students, Bennett says he likes being able to give his viewers another option. Bennett says it’s worth experimenting with the platform’s model and thinks it will appeal to viewers.
Joshua Steil, half of the duo The Credit Brothers TikTok And YouTube, told businesskinda.com that he believes Zarta offers creators a transparent way to monetize and create content. Steil believes that his decision to post content on his other channels or on Zarta depends on the purpose of the video and whether the video has a general topic or if it targets a specific audience.
Image Credits: Zarta
Yudasina believes that Zarta differentiates itself from other creator platforms through its business model and focus on pay-per-view content. Some might argue that a pay-per-view model isn’t sustainable for creators, which is why Yudasina says the pay-per-view model won’t work for every creator. She says Zarta is not for the top 1% of makers, but for makers who could benefit from such a model.
“We’re constantly in this feedback mode to make sure we’re actually providing enough value to creators, because that’s the ultimate goal,” Yudasina said. “I’m convinced that yes, pay-per-view won’t work for everyone, but there’s a large percentage of people that need it.”
Yudasina sees Zarta as a platform for creators who create value-added content that offers intrinsic value beyond entertainment. She believes Zarta is a good option for creators who have a loyal community, not necessarily creators whose content is based solely on trends and virality.
As for the new funding, Yudasina says the investment will primarily be in hiring talent and expanding Zarta’s small team to ensure the platform has sufficient resources to build out its vision. Zarta is not focused on making expensive deals with major creators, but is going to make sure it can be replicated in an efficient way.
The funding round included participation from Endeavor, AirAngels, Dragonfly Capital and others. As for lead investor, Andreessen Horowitz, the venture capital firm is betting on the microtransaction model taking off.
“Free-to-play games with in-game microtransactions became popular in the East and spread to the West,” Anne Lee Skates, a partner at Andreessen Horowitz, told businesskinda.com in an email. “We are seeing this groundbreaking trend that started with gaming moving into other content types. In the West, we believe that microtransactions will begin with content formats that Western audiences love and enjoy on a daily basis, such as videos.
As for the company’s long-term roadmap, Zarta will focus on proving it offers a business model that is valuable to creators and can help them pursue their passions. The company plans to open up the platform to more creators soon and eventually to all creators.
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