2 SPOTS LEFT:

Join us at the Digiday Publishing Summit from March 24-26 in Vail

VIEW EVENT

Whalar Group bets on 24,000 square-foot creator campus to broker brand deals, recruit talent under one roof

Creator company Whalar Group opened its doors to a newly-built co-working and production space in Los Angeles for creators in February. Named The Lighthouse, it’s not exactly a school, but not exactly an office either. For Whalar, the intention is to gather creators in one place and see what comes of it, whether that’s business ventures, funding or other creative pursuits, explained Neil Waller, co-founder and co-CEO of Whalar Group.

“Now, a week after when the space is open, I just see people talking to each other and agreeing to do things with each other just by the nature of being around each other,” Waller said in late February. “It’s literally everything we could have like dreamt of coming to fruition.”

The Lighthouse is a members-only place for creators to connect with fellow creators, work on attracting brand partnerships and access professional resources. That’s why Whalar sees it as akin to a university campus that aims to not just provide a networking and production ground for creators, but also act as a vehicle for brands to recruit talent — and prove that all these services under one roof can work as a business.

“The ultimate success of this project will not be how many creators are part of it … or how many events go on at it. It will be what work has come out of the fact that people were here,” Waller told Digiday.

About three years in the making, the 24,000-square-foot facility in beach town Venice, California, The Lighthouse includes production studios, co-working spaces, a coffee bar, vinyl DJ station, a 50-person theater, an outdoor quad and event spaces. Creators get access to it all for the membership price of $5,750 per year (paid annually with a cancelation option), up to a maximum of four years. Rates for two- to six-person private offices or work studios are $5,000 to $7,500 per month. Team and group memberships cost $5,000 per year per team member, according to the company.

By the end of March, Lighthouse will welcome 150 creators who are paying in “some capacity,” with this first class of creators getting an early sign-up rate (of an undisclosed amount), which was given before the space opened; 600 creators are on a waitlist to go through an application process facilitated by a Creator Council made up of around 22 creators and industry experts, according to Waller. The Council includes YouTubers Colin Rosenblum and Samir Chaudry of Colin and Samir, who will serve as co-chairs of the board and Creators-in-Residence in Venice.

As a creator, London-based lifestyle and beauty vlogger Sienna Santer (who has 711,000 subscribers on YouTube) said the biggest theme she hears when talking to fellow creators is isolation in their jobs. That’s why she sees the appeal in a space like Lighthouse, because it provides a place for creators to share their experiences and connect in a work environment. Santer also serves as creator strategist at influencer agency Buttermilk.

“The number one thing that they told me is that a lot of them are lonely, and that was a big part of the reason why I wanted to have a job, coworkers, colleagues and an audience,” Santer said. “Creators don’t have other creators or colleagues. You’re not seeing them every day unless you schedule it.”

Eventually, Whalar plans to fill the space with around 500 to 600 members total and open another Brooklyn location this summer, along with a London campus next year. Lighthouse will be led by President Jon Goss, former chief brand and marketing officer of creative co-working space NeueHouse.

While membership programs and physical creator spaces are signs of a “maturing” creator economy, eMarketer analyst Minda Smiley said it remains to be seen “how these spaces can actually be useful for creators.” While there might be value in getting production access and networking, Smiley doesn’t think it’s a justified cost for all creators. Rather, these might be seen as “extra perks” for those that have specific needs, she added.

“Part of the appeal of being a creator is having some flexibility in terms of where and when content can be created, so it’s unlikely that an external physical space is something that’s a need-to-have,” Smiley said. “All in all, though, I can’t imagine these will become a major part of creator agencies’ offerings as they look to further appeal to this set.”

Yet Whalar isn’t alone in making this real estate investment. Last April, influencer agency Billion Dollar Boy launched its creator membership program FiveTwoNine in a space out of its London headquarters. It offers creators 12-month plans and day rates for access to events, training and studios that can also be booked at an hourly or daily rate. The agency plans on adding more locations, with a U.S. expansion slated for this year.

For its part, Lighthouse was able to raise capital for the project with brands, including iHeartMedia, Shopify and Samsung, to become founding sponsors and partly fund the build and provide other resources for creators. (Whalar declined to disclose the financial investments for this project and how much brands are contributing.) With iHeartMedia, this entails a multi-year deal that extends to sponsoring the upcoming New York and London locations. After two years, the companies will revisit the partnership terms, said Greg Ashlock, president of iHeart Influencer Network, a network of 2,000 broadcast and podcast talent. iHeart does not get free access to Lighthouse, but some memberships are available for talent. It’s the same for Whalar’s own talent company Sixteenth.

Ashlock sees Lighthouse as a “jumping off point” to find creators who want to expand in audio and podcasting. In exchange, iHeart will also offer creators its production facilities and scaled distribution platform and participate in programming like audio workshops or events. The company also runs festivals and awards, which could generate more brand collaborations with creators.

For example, if a member wants to make a show or podcast, they might work on it at Lighthouse and produce it at iHeart facilities — and iHeart would get to expand its content library with creators, especially those just focused on social media, Ashlock explained. Ashlock declined to disclose the amount of the company’s financial contribution.

“We’re both a publisher, which is the largest publisher [for broadcast and podcasts globally] — but we’re also a distributor,” Ashlock said. iHeartPodcasts shows draw some 31 million in unique monthly audience and 172 million downloads and streams per month in the U.S. as of this January, per measurement company Podtrac.

“The Breakfast Club” is one of iHeart’s biggest nationally syndicated shows, drawing 6 million global listeners monthly. It partnered with Fox’s streaming service Tubi this January to bring a free ad-supported (FAST) channel and on-demand content to the platform.

Because iHeart is “bought in” with Whalar as a partner, whether or not a London location gets built makes no difference to them, Ashlock added. Similarly, Whalar sees its other brand partners like Shopify and Samsung being able to add expertise and value for creators who want to expand in e-commerce, TV and audio, Waller explained.

Waller envisions Lighthouse as a project that offers more than an office for creators — one where the value is being part of a larger grad school-like community and incubator, attend bootcamps, and raise funding. For example, he wants to launch a creator academy that teaches people how to become a creator, and it could run as an eight- or 12-week program that could include a brand sponsor.

Demand seems to be increasing in the co-working model, as businesses look to more flexible spaces. In 2024, the global co-working spaces market was valued at some $16.88 billion and is projected to reach revenue of $40.47 billion in 2030, driven by the freelance economy and shifts away from traditional office space, according to market research company Grand View Research.

Waller also has his sights set on expanding to potential markets like Miami, Austin or even Tokyo down the line.

“[Those are] aspirations in the future,” he said. “So it’s not necessarily like this thing where I need a hundred Lighthouses around the world. We would love to build a community and a movement around The Lighthouse that could exist outside of the physical locations.”

https://digiday.com/?p=571132

More in Marketing

Brands hire Gen X and boomer influencers as the ‘power of the silver influencer’ rises

As brands like Progresso Soup and Harmless Harvest look to get in front of more shoppers, they’re setting their sights on influencers from a more senior cohort.

Marketers rethink cheap programmatic as ad waste mounts

Why some marketers are finally asking the right questions about programmatic advertising.

As SXSW kicks off, marketers embrace it as an ‘accessible’ conference for content, connection

Marketers are once again returning to SXSW, which runs from March 7th to Saturday March 15th in Austin, Texas.