Many were confused as to why Leo would make this move until it was discovered that Stickam was doing something most web video startups seem deeply averse to – they paid him. Paid him to the tune of about $100,000. Maybe not money you can retire on but it raises the bar for everyone else out there.
Buying talent has always been a smart move in the entertainment world and it is about time that it seeped into the realm of New Media.
Any web video site out there would be far better off going out an stealing top talent away from other sites with actual cold, hard cash than trying to develop something on their own from scratch and the free labor of the few followers they pick up along the way.