“At the Freedom Factory, we even beam air fiber from a house five miles away to ensure a reliable second Internet. We also have a hidden page on [the Cleetus McFarland website] to launch a backup stream if the primary one fails,” he said.
Today, FRDM+’s biggest challenge isn’t a technical one. Instead, it’s around managing the business’s different parts using a small team. FRDM+ has 35 full-time employees across its Shop, Race Track, Events, and Merch divisions and is “entirely self-funded,” per Mill. The company also relies on contractors for productions, but its core livestream team has six full-time employees.
Mitchell told Ars that FRDM+ is profitable, but he couldn’t get into specifics. He said the service has “strong year-over-year growth and a solid financial foundation that allows us to continue reinvesting in our team and services,” like a “robust technology stack, larger events, venue rentals, and even giving away helicopters and Lamborghinis as the prizes for our races.”
“Having been at Discovery during the launch of MotorTrend OnDemand, I’ve witnessed the power of substantial budgets firsthand,” Mill said. “Yet, [FRDM+ has] achieved greater success organically than [Discovery] did with their eight-figure marketing investment. This autonomy and efficiency are a testament to the strength of our approach.”
Any profitability for a 3-year-old streaming service is commendable. Due to wildly differing audiences, markets, costs, and scales, comparing FRDM+’s financials to the likes of Netflix and other mainstream streaming services is like comparing apples to oranges. But it’s interesting to consider that FRDM+ has achieved profitability faster than some of those services, like Peacock, which also launched in 2020, and Apple TV+, which debuted in 2019.
FRDM+ doesn’t share subscription numbers publicly, but Mitchell told Ars that the subscription service has a 93 percent retention. Mill attributed that number to a loyal, engaged community driven by direct communication with Mitchell.
Mill also suggested to Ars that FRDM+ has successfully converted over 5 percent of Mitchell’s YouTube audience. Five percent of Cleetus McFarland’s current YouTube base would be 212,500 people.