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The service hit 1 million subscribers early in I've personally been a subscriber for four years. Though you may expect compromises for the low fee, you'll encounter very few. We are inspired by reading. From our founder. A brief history of Scribd. Oct Scribd introduces the first reading subscription service, providing readers with monthly access to books — all for one flat fee. Nov Scribd incorporates audiobooks into its reading subscription service and becomes the most robust and valuable subscription service for readers.
Nov Scribd adds magazines from leading publishers to its subscription. Jan Scribd surpasses the 1,, subscriber milestone. April Scribd launches Scribd Originals , an original content publishing house that brings exclusive content to our subscribers.
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Exclusive Corporate feature. So, we basically just market our subscription service to those a hundred million users. We pay for a little bit, but just a small amount. Full Transcript. Hello, everyone. My guest today is Trip Adler. He grew up in Palo Alto, California and graduated from Harvard. He launched Scribd in and they now have over 80 million monthly readers and thousand subscribers. Trip, are you ready to take us to the top?
All right, good. How do you make money? I mean, rather than the old model for media where people would pay for each piece of content one at a time, we now just have one simple monthly subscription, same price for everyone. And then you can pay once and once you pay you can just read whatever you like. And with the subscription model, the beauty of that is it gives users really the freedom to just kind of explore different types of content, discover new types of content, and you kind of focus on what to read and not what to buy.
And where were you at, get us in your head a little bit, back in Did you just graduate? Did you just have a big financial windfall so you could take a risk with Scribd? Did you have to make Scribd work because you were broke as hell? Where were you? Broke as hell but at the same time had supportive parents, so I could at least live with them.
So that also was like a pretty … at the time, a pretty large amount of money that covered our basic expenses. So, we had the … between Y Combinator and living at home we had a few thousand dollars to build a website, get that online.
And that was really enough to get started. I mean, back then 12, was really … it still is sufficient to get a service up and running. And then we were able to … once we got some traction, we were able to raise venture money and kind of scale from there. So, basically the trajectory was … it was the first 12, from Y Combinator, and then we raised 40, in angel money.
And then at that point we got some tractions and we really quickly went to raise three and a half million from Red Point and then another 10 from CRV and then another 10 from Silicon Valley Bank, and then another 25 from Coastal Ventures.
So, it was about 50 to date. Where has most of that capital gone? Head count or just channels where the [inaudible ] to be worked and you wanted to just pour more money in those channels?
We started the service as just a free service for publishing and sharing content and it today reaches over a hundred million monthly users. So, our two costs are really just hiring good people, hiring good engineers and designers and all types of people to build the product.
And then also on the content side, we do deals with book publishers, with magazine publishers, with newspapers, and we make all that content available through the subscription model. You can see the view behind me. So, most of them are in San Francisco. We also have … we have to have offices in Phoenix. And a few other people around the world.
Walk me through how you make the kind of … you have a market, right? This is a traditional marketplace. You got to get the content and you got to get the users.
So, early on when you were solving that chicken and egg problem, usually marketplace creators did something very creative to make the wheels start spinning. What did you do in the early days? So, in the early days, the initial idea was we would just allow someone to take a piece of content, publish it on the web, and then we would find audience for them primarily via SEO.
And then the nice thing was actually-. Yeah, to , I went from roughly zero to a hundred. And then we had to figure out a business model. So, we tried advertising. Eventually we tried the subscription and that worked really well. And since we already had an audience, we were able to market the service.
Trip, hold on, hold on.
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