Funny or Die takes edgy humor beyond Web to TV, movies

ByABC News
December 21, 2011, 6:10 PM

HOLLYWOOD -- After the TV series Dawson's Creek ended in 2003, star James Van Der Beek tried to ditch drama and switch to comedy.

Hollywood wasn't interested.

Determined to prove himself, he contacted the comedic website FunnyorDie.com to offer his services — for free. He began making videos for the site and, shortly after they ran, his wish came true. Producers began calling with comedy offers. In April, his first sitcom, Don't Trust The B**ch, makes its debut on ABC.

Funny or Die "totally changed the perception of me," he says. "I didn't realize how important Funny or Die was until I saw the effect of it."

The website, which turns 5 in April, has established itself as one of the go-to places on the Web for edgy, humorous videos. It's different from YouTube in that so many big names appear in FOD-produced fare. The list includes A-listers such as FOD co-founder Will Ferrell (Elf, Anchorman), Ben Stiller (Night at the Museum), Jack Black (School of Rock) and Oscar host Billy Crystal. Homemade videos appear alongside celebrity content.

FOD's ambitions go beyond the Web.

HBO's Funny or Die Presents series begins its third season in 2012, and FOD's second TV series, Billy on the Street with Billy Eichner, makes its debut Thursday at 11 p.m. ET on the Fuse TV network. Its first film, Tim and Eric's Billion Dollar Movie, starring cable TV's Adult Swim comedy team Tim and Eric, will make its debut at the Sundance Festival in January and be released to theaters in March. The distributor is Magnolia Pictures, which includes the Landmark Theatres chain and cable's HDNet and is co-owned by Mark Cuban, owner of the National Basketball Association's Dallas Mavericks.

"We believe in our model, the studio model for the 21st century," says Dick Glover, FOD's CEO. "Keep your costs low, and distribute everywhere."

For Fuse, which is owned by Madison Square Garden and focuses on music programming, an association with FOD exposes it to a different audience as well.

"It gives us the credibility and a hook with comedy to draw people into the show that we couldn't have done on our own," says Fuse TV general manager Dave Clark.

Funny or Die draws 16 million monthly visitors and targets its 18-34 male audience perfectly, says Rebecca Lieb, an analyst with the Altimeter Group. "It's the holy grail of advertising, because they're so difficult to reach," she says.

But will they follow Funny or Die to basic cable TV? "I have my doubts," she says. "It's exactly the age and (demographic) of audience who consume less TV media. These are the cord cutters, except they never have a cord to cut."

The next YouTube

Funny or Die was born of an idea from venture capital firm Sequoia Capital. Partner Mark Kvamme was looking for the next YouTube, and his son Michael, an aspiring stand-up comedian, suggested a site that married self-produced comedy with celebrity content.

Talent firm Creative Artists Agency connected Kvamme with film star Ferrell and his producing partners, Adam McKay and Chris Henchy. Sequoia and others invested $15 million and after four years, the site is now profitable and a huge magnet for both Hollywood and TV.

Now, "We have an opportunity to build something really special," says Kvamme: "A large comedy brand, like a Saturday Night Live or South Park. We are in the early innings now."