Marques Brownlee, known worldwide as MKBHD, recently announced the discontinuation of his wallpaper app, Panels. This decision marks the end of a promising venture that initially garnered significant attention but struggled to achieve long-term sustainability. For those navigating the waters of entrepreneurship, this development serves as a compelling case study on product viability, pricing strategies, and understanding one’s audience.
As an entrepreneur, I’ve observed numerous launches, but this one was particularly unique, given its inception by a prominent tech content creator. Panels debuted in September 2024 and made an impressive debut, quickly climbing to the top of app store charts. Despite this initial success, the app will officially cease operations on December 31, 2025, refunding users with active subscriptions. Additionally, the app’s code will be open-sourced in January 2026 to encourage further development by the community. This all sounds straightforward, but beneath the surface lies a web of lessons for creators and startup founders.
Why Panels Fell Short
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Pricing Missteps:
When Panels launched, it operated on a subscription model costing $50 annually or $12 monthly. Users argued that such fees were exorbitant for smartphone wallpapers, especially when free options abound online. For many, this created an immediate barrier to entry, overshadowing the app’s unique value, the artist-curated, high-quality content. -
Niche Market Assumptions:
Brownlee acknowledged in his shutdown announcement that the app was designed for a niche audience. While serving a niche can be lucrative if the audience is deeply engaged, the pool of users willing to pay for premium wallpapers proved too small to support a sustainable business. Data shows that Panels had over two million wallpapers downloaded but struggled to convert this engagement into revenue. -
Development Team Challenges:
The Panels team faced internal setbacks, with shifts in its composition that ultimately hindered the app’s evolution. Team consistency is often a keystone of long-term product success, and the turbulence within Panels' development team reflects an important cautionary tale for startups: talent retention and alignment are as critical as the product itself. -
Consumer Expectations:
While Brownlee's reputation lent credibility and visibility to Panels, the consumer base he amassed on platforms like YouTube did not universally convert into paying customers. Free alternatives and the ability to use personal images diminished users’ perceived value of the app. -
Late Transparency About Sustainability:
Some users expressed disappointment over the lack of real-time updates regarding the app's status and challenges. Open sharing of goals, including hurdles encountered, can sometimes nurture deeper user trust.
Lessons for Other Entrepreneurs
Let’s break down a roadmap to avoid the hurdles Panels encountered:
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Test Your Pricing Thoroughly: Before committing to a fixed pricing model, conduct small-scale experiments, surveys, or trials. Operating within the digital space doesn’t inherently justify high subscription fees.
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Understand Consumer Habits Through Market Research: Take the time to build a detailed understanding of your audience. In the case of Panels, research might have indicated that smartphone users rarely wish to spend extra money on something they can easily acquire for free.
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Prioritize Team Stability and Vision Alignment: Fostering a strong, unified team isn’t just important; it’s everything. Similarly, securing long-term collaborators who share the same vision can make or break the project’s future.
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Beta Test and Tweak: Platforms catering to niche preferences are complex. Continual user feedback and iterative improvements can bridge the gap between initial excitement and extended engagement.
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Transparency Matters: Communicate openly about your goals, challenges, and decisions to your audience. Brands that encourage interactive feedback develop a loyal user base, even during setbacks.
A Blueprint for Sustainable Growth
While Panels didn’t achieve long-term success, entrepreneurs can leverage several strategies to avoid a similar fate:
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Consider Free Models with Upselling Potential: Example: Spotify or Duolingo. By offering free basic services with optional premium perks or limited-time offers, you can grow an audience before introducing higher-tier subscriptions.
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Engage the Community Post-Launch: Offering community-driven promotions, open challenges, or user-generated features could foster deeper interaction and prolong a product’s relevance.
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Seek Multiple Revenue Streams: Relying solely on subscription revenue can be risky. Additional income from ads, partnerships, or premium content offers stability.
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Analyze Competitor Offerings: Standing out in a sea of apps requires either superior functionality, a highly appealing unique benefit, or a groundbreaking approach.
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Investor Diversification: If you're not generating enough sustainable revenue through users, working with well-aligned partners or investors can provide a safety buffer.
Avoidable Pitfalls
Reflecting on Panels, here are three mistakes all entrepreneurs should guard against:
- Overestimating Brand Influence: Even with a large following, converting fans into paying customers isn't automatic and requires deliberate strategy.
- Launching with Minimal Differentiation: If your product doesn’t stand apart from free or existing alternatives, it risks being bypassed. Unique experiences are the currency of reputation.
- Gaps in Communication: Ignoring early criticism or failing to address concerns upfront can alienate prospective buyers.
The Silver Lining: Community-Driven Projects are Possible
Panels shifting to an open-source model highlights the potential for developers to revive failed yet promising projects. This is a growing trend among creators when ventures don’t flourish as anticipated. By releasing the app’s code under the Apache 2.0 license in January 2026, Brownlee has left the door open for fellow developers to build on the foundation he started. Whether this initiative will revive Panels’ concept in a community-driven format remains to be seen.
Final Thoughts
Panels may soon be no more, but its story carries invaluable lessons for entrepreneurs stepping into the app or digital product domain. The challenges Brownlee faced, from pricing hurdles to team upheavals, highlight the importance of understanding markets deeply, building agile teams, and valuing transparency throughout a product’s lifecycle. While not every venture will succeed, even setbacks can shape the trajectory of future entrepreneurial endeavors. This ability to adapt, learn, and reset is the most powerful tool in an entrepreneur's arsenal for fostering growth and innovation.
FAQ
1. Why is MKBHD shutting down the Panels app?
Panels is shutting down due to unsustainable operations, pricing backlash, and challenges in team stability. The app struggled to convert its large download numbers into sustainable revenue. Learn more about Panels shutdown on TechCrunch
2. When will Panels officially shut down?
Panels will officially cease operations on December 31, 2025. Visit Panels announcement on their official website
3. What will happen to active subscribers?
Users with active subscriptions will receive automatic prorated refunds after the app closes on December 31, 2025. Read about Panels' refunds on 9to5Mac
4. Will users lose access to wallpapers they’ve downloaded?
No, all downloaded wallpapers will remain accessible to users after the app shuts down. See full details on The Verge
5. Why was Panels’ pricing criticized?
Panels charged $12 monthly or $50 annually, which many users found too expensive for wallpaper content readily available for free online. Read about Panels pricing backlash on The Tech Buzz
6. What led to the app’s development challenges?
The Panels team faced internal difficulties, including changes in its composition, which hindered the app’s development and ability to evolve. Learn more on Gizmodo
7. Is Panels becoming open-source after its shutdown?
Yes, the app's code will be released as open source under the Apache 2.0 license in January 2026, encouraging community development. Discover community plans for Panels on MacRumors
8. How many downloads did Panels achieve before shutting down?
Panels saw over 900,000 downloads, resulting in more than 2 million wallpapers being downloaded. Check out the performance stats on FindArticles
9. Why didn’t MKBHD’s fame translate into long-term app success?
Despite Marques Brownlee’s massive following, many fans weren’t willing to pay for exclusive wallpapers, highlighting a gap between popularity and product conversion. Read insights on MKBHD’s influence on PhoneArena
10. What lessons can entrepreneurs take from the failure of Panels?
Key lessons include testing pricing models carefully, thoroughly understanding consumer habits, ensuring team stability, and maintaining transparent communication throughout a product’s lifecycle.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
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The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
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Since its inception, Fe/male Switch has shown impressive growth:
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Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.