NPR Article on XtraNormal
Started in 2006 XtraNormal is a self-publishing video site with a twist. All the videos are completely computer generated except for the content that users provide. The popular theme of an ignorant buffoon coupled with someone that tries to convince them they are wrong provides humor across topics. The popularity of the company flourished when a video depicting an iPhone purchase had millions of views and people wanted to recreate this with their own set of dialog.
XtraNormal now charges for extra content using a somewhat microtransaction model. You buy point packs in bundles of thousands and use it to purchase new digital characters, sets, voices, and general content. The service was free and still allows for some basic content to be made for free as well but to be profitable extra content is now paid for.
What make this company successful is the idea that anyone can hire "virtual actors" to say and do exactly what they want them to do. Users create a script that inflection and pauses can be added and it is always done as the script instructs. Users do not have to have a camera, be seen, or even heard but their opinion and thoughts can be relayed to the world. XtraNormal has created the framework for creativity and now allows anyone to use it to express themselves in a humorous and anonymous manner.
The concept of taking a thought and seeing it played out near instantly by actors gives an immediate satisfaction. XtraNormal had the innovation and while easy to recreate the entrance of a competitor is unlikely due to the time and resources needed to develop the polished system they have. The early innovation and updating to make sure the content is fresh is what keeps XtraNormal prosperous.
