TLDR: Lucy Guo, co-founder of Scale AI, has launched Passes, a platform for influencers and celebrities to monetize exclusive content, competing with OnlyFans and Patreon. Launched in December 2022 with $50 million in funding, Passes pays creators around 90% of revenue but faces intense competition and legal challenges, including a lawsuit from Fanfix and a class action over alleged child pornography. The company has implemented a policy barring creators under 18 and is investing heavily in content moderation.
Lucy Guo, the co-founder of artificial intelligence giant Scale AI, has ventured into the bustling creator economy with her new platform, Passes. Launched in December 2022, Passes aims to empower influencers and celebrities to monetize their fanbase by offering exclusive content, positioning itself as a direct competitor to established platforms like OnlyFans and Patreon. The platform has successfully raised US$50 million in funding since its inception.
Passes focuses on creators who have already garnered significant popularity on platforms such as TikTok and Instagram. The company distinguishes itself by offering a generous revenue share, paying approximately 90% of the revenue directly to its creators. As of February 2024, over 1,000 influencers have received payments through the platform. Passes further expanded its reach by acquiring competitor Fanhouse in 2023 and has actively attracted influencers by offering income guarantees, with some reportedly receiving as much as $500,000 to switch platforms.
Despite its rapid growth and substantial funding, Passes operates in a highly competitive market. The creator economy is a massive opportunity, with influencer marketing spending estimated at around $8.5 billion annually. However, this lucrative market is dominated by established players. For instance, OnlyFans boasts over 2 million creators and 170 million users, while Patreon supports approximately 200,000 creators and 6 million users. Passes, with its 1,000 creators as of early 2024, faces the challenge of gaining significant market share against these incumbents, a task made more expensive by the need for attractive creator guarantees.
The platform has also encountered significant legal and safety challenges. Passes is currently facing a lawsuit from Fanfix, which alleges the company stole confidential information and poached clients. More critically, Passes is involved in a class action lawsuit concerning the alleged distribution of child pornography, an accusation the company vehemently denies. In response to these challenges and to enhance platform safety, Passes has implemented a strict policy barring creators under the age of 18. The company has also made substantial operational investments in content moderation, employing about eight full-time staff and 70 contract workers based in Asia specifically for this purpose. This highlights the complex regulatory and safety landscape that platforms navigating the space between family-friendly and adult content must contend with.
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Given Lucy Guo’s background as an AI billionaire and co-founder of Scale AI, Passes is expected to leverage advanced technological approaches. While specific AI tools integrated into the platform are not extensively detailed, the company’s tech-forward strategy is a key differentiator in the crowded creator monetization space. This technical emphasis, however, has also been met with skepticism from some creators who view AI as both a potential competitor and a threat to their work.
