Multi-channel network

Last updated

A multi-channel network (MCN) is an organization that works with video platforms to offer assistance to channel owners in areas such as "product, programming, funding, cross-promotion, partner management, digital rights management, monetization and sales, and audience development," [1] in exchange for a percentage of the ad revenue from the channel. [2]

Contents

Name origin

The term "multi-channel network" (MCN) was coined by former YouTube employee and Next New Networks co-founder Jed Simmons. It has since become standard vocabulary in the YouTube ecosystem.

At the time of YouTube's acquisition of Next New Networks (2011), the word "Network" had a confusing meaning inside of YouTube considering its engineering culture. Prior to 2011 many names were used to describe YouTube channel companies, including Online Video Studio (OVS), Internet Television Company (ITC), YouTube Network or simply Network. [3] [ failed verification ] Due to confusion both in the market and internally, YouTube senior executive Dean Gilbert wanted to clarify what a YouTube "Network" meant. Simmons, whose background was from cable TV and Turner Broadcasting (home of CNN, TNT, TBS, Cartoon Network et al.) hoped to distinguish companies who actively owned, managed and programmed original channels on YouTube from those that aggregated channels and creators but did not focus on channel programming and content. The Multi Channel Network name was chosen for those who actively managed AND programmed channels to emulate cable TV programming companies such as Turner, Discovery, Disney, Comcast and MTV Networks that owned and operated multiple channels ("multi-channel"). The MCN name was born within YouTube and its ecosystem.

Sub-networks [4] of MCNs are known as SubMCNs, Virtual Networks, Proprietary Networks, Content Distribution Networks, SMCNs, VNs, PNs, or CDNs. [5]

Purpose

An MCN works by a company setting up an account with YouTube CMS (the system used for Content ID), the company adds anyone who signs a contract with them to their CMS, allowing users (and the CMS account owner) to use monetization, block and track policies. Monetization allows for videos to generate revenue, Block prevents access to videos and Track allows content owners to see the analytics of re-uploads and copyright infringing content. Some MCN partners can block videos by country (e.g., if a video is uploaded with a banned or unlicensed logo).

MCNs have been described as a means to "negate the hassle involved when seeking out your own advertising opportunities on the site." [2] Advertisers who work with MCNs can pay for services including overlay adverts, product placement and in show sponsorships, aiming to gain repeated exposure, [2] endorsement by YouTube personalities, [2] and increased audience engagement, especially compared with television advertisements which are often ignored or skipped. [2] [6]

Benefits

The benefits and drawbacks of partnering with a multi-channel network have been discussed by several high-profile YouTube creators, including Hank Green, [7] Freddie Wong [8] as well as YouTube itself. [1]

The possible benefits can include:

Controversies

There have been several controversies involving YouTube Networks.

Machinima has been criticized for the use of perpetual contracts. [18] Ben Vacas, known to the YouTube community as "Braindeadly", attracted media attention in January 2013 over contractual issues with Machinima. [19] Under the terms of his contract, Machinima were permitted to place advertisements on Vacas's videos and in return he would receive a percentage of the profits generated. [19] However, the contract also disclosed that it existed "in perpetuity"; [18] meaning Machinima would hold the rights to any content created by Vacas published on his partnered YouTube channel in his lifetime, a detail Vacas failed to read. [18]

Machinima was criticized in early 2013 by YouTuber Athene for "intimidating... multiple partners" to sign a contract that would significantly lower their CPM. Athene called it "one of the worst deals on the internet" and advised his subscribers not to "sign with Machinima" stating that they could get a better arrangement with other networks. [20]

Purchases

Several MCNs have been purchased by larger corporations. In early 2014 Maker Studios was sold to Disney for $500 million, [21] and Big Frame was sold to DreamWorks Animation through AwesomenessTV for $15 million. [22] In June 2013, RTL Group invested $36 million in BroadbandTV Corp. [23]

See also

Related Research Articles

<span class="mw-page-title-main">Frederator Studios</span> American animation television production studio

Frederator Studios is an American animation television production studio founded by Fred Seibert in January 1997. Seibert sold Frederator Networks, Inc. in 2022, and it is now a division of Kartoon Studios' Canadian holding company Wow Unlimited Media. The studio's slogan is "Original Cartoons since 1998."

Rooster Teeth Productions, LLC was an American internet media and production company headquartered in Austin, Texas. Founded in 2003 by Burnie Burns, Matt Hullum, Geoff Ramsey, Jason Saldaña, Gus Sorola, and Joel Heyman, Rooster Teeth was a subsidiary of Warner Bros. Discovery Global Streaming & Interactive Entertainment, which is a division of Warner Bros. Discovery.

<span class="mw-page-title-main">Discovery Digital Networks</span> American media organization

Discovery Digital Networks was a San Francisco based multi-channel Internet television and digital cable network that created, produced and distributed streaming television shows on niche topics. It was sold by Discovery Communications into Group Nine Media in December 2016 and, as such, no longer exists.

<span class="mw-page-title-main">Machinima, Inc.</span> 2000–2019 American online entertainment network

Machinima, Inc. was an American independent multiplatform online entertainment network owned by WarnerMedia. The company was founded in January 2000 by Hugh Hancock and was headquartered in Los Angeles, California.

<span class="mw-page-title-main">Blip.tv</span> American media platform for web series

Blip was an American media platform for web series content and also offered a dashboard for producers of original web series to distribute and monetize their productions. The company was founded on May 5, 2005, and it was located in New York City and Los Angeles. It was financed by Bain Capital Ventures, Canaan Partners, and Ambient Sound Investments. Blip's mission statement was "to deliver the best original web series to audiences across multiple platforms." The site showcased a wide variety of dramas, comedies, arts, sports and other shows. Blip was acquired by Maker Studios in 2013 and shut down by them on August 20, 2015.

The YouTube Next Lab and Audience Development Group, founded as Next New Networks, is a company based in New York City. Next New was launched in March 2007 by founders Fred Seibert & Emil Rensing, and co-founders Herb Scannell, Timothy Shey and Jed Simmons with $8 million in funding from investors including Spark Capital. The company was the home to online television networks Barely Political, Channel Frederator, Fast Lane Daily, Pulp Secret, Threadbanger, Vsauce, and Indy Mogul, among others. Next New Network's first creative hire was filmmaker Justin Johnson.

<span class="mw-page-title-main">React Media, LLC</span> American media company founded by Benny and Rafi Fine

React Media, LLC is an American reacting, digital media and entertainment company founded by brothers Benny Fine and Rafi Fine, creators and media entrepreneurs. React Media produces the React video series, their several timed-spoiler series, narrative web series, and created a "transmedia" sitcom on YouTube, MyMusic.

<span class="mw-page-title-main">Disney Digital Network</span> American worldwide multi-channel network

Disney Digital Network was an American multi-channel network located in Culver City, California. It was originally the successor to Maker Studios, co-founded by Lisa Donovan, Danny Zappin, Scott Katz, Kassem Gharaibeh, Shay Carl, Rawn Erickson II, Ben Donovan, Philip DeFranco, Glasgow Phillips, Michael Gallagher, Matthew Clawson, and Paul Ballon in 2009. Maker Studios was originally conceived as an incubator for YouTube talent through the use of Super Channels like The Station. Maker Studios adopted the multi-channel network (MCN) model after the initial model failed to take root. Maker Studios was acquired by The Walt Disney Company in 2014 for $500 million, and was absorbed into the newly formed Disney Digital Network in 2017.

Bachir Boumaaza, known by the online pseudonym Athene, is a Belgian internet personality and Twitch streamer and YouTuber. He is best known as a World of Warcraft content creator. He is the founder of Gaming for Good and has been involved in numerous charity gaming events to raise money for charities such as Save the Children.

Fullscreen, LLC was an American entertainment company which offered tools, services, and consultation to social media content creators and brands, multi-channel network. It was owned by Otter Media, which is now a subsidiary of Warner Bros. Discovery.

Brave Bison is a digital advertising and technology services company. The company provides a range of digital advertising and technology services to brand advertisers, and operates a digital media network of over 650 channels and 158 million followers. The company is headquartered in London with hubs in Manchester, New York, Singapore, Bulgaria, Egypt and South Africa.

<span class="mw-page-title-main">BroadbandTV Corp</span> Canadian media company

BBTV is a Canadian media and technology company founded by CEO Shahrzad Rafati in 2005. In 2019, the company was the second-largest video property by unique viewers, according to comScore. Its head office is in Vancouver, British Columbia, Canada. BBTV's clients include the NBA, Paramount Global, and Sony Pictures.

<span class="mw-page-title-main">Syndicate (Internet personality)</span> English YouTuber and Twitch streamer (born 1993)

Thomas George Cassell, known online as Syndicate, is an English YouTuber and Twitch streamer. Regarded as one of the earlier known gaming personalities, his videography consists of Let's Play videos on Call of Duty and Minecraft. Born in Manchester, Cassell had passion for a career in the gaming industry, which he started by purchasing gaming equipment using his money from McDonald's. On 3 September 2010, Cassell registered his gaming channel "TheSyndicateProject", where he found success and an online community. His prominence online was recognized by Call of Duty publisher Activision and multi-channel network (MCN) Machinima, where he signed to the network to monetize his content. Cassell's channel achieved substantial growth, passing one million subscribers in June 2012 and one billion views in late 2013. He further expanded his career into livestreaming on Twitch, hosting the same commentary over his gameplays. His Twitch channel became the first to reach one million followers in August 2014.

<i>Warner/Chappell Music Inc. v. Fullscreen Inc.</i>

Warner/Chappell Music Inc. et al. v. Fullscreen Inc. et al. (13-cv-05472) was a case against multi-channel network Fullscreen, filed by the National Music Publishers Association on behalf of Warner/Chappell Music and 15 other music publishers, which alleged that Fullscreen illegally reaped the profits of unlicensed cover videos on YouTube without paying any royalties to the rightful publishers and songwriters.

Awesomeness, formerly and best known as AwesomenessTV, is an American digital media and entertainment network company owned by Paramount Digital Studios, a division of Paramount Global. Established in July 2012 by Brian Robbins and Joe Davola, the company operated a network initially focused on children’s programs, teen dramas, comedies, live events and music videos targeting adolescents and young adults.

<span class="mw-page-title-main">VanossGaming</span> Canadian YouTuber and music producer

Evan Fong, known online as VanossGaming, is a Canadian YouTuber, music producer, and DJ. As one of the most popular gaming personalities on YouTube, his videography consists of montage-style videos of him and other creators playing various video games, such as Grand Theft Auto V, Garry's Mod, and various titles from the Call of Duty franchise. Born in Toronto, Fong dropped out of his Economics degree at the University of Pennsylvania to focus on his YouTube channel. On September 15, 2011, Fong registered his gaming channel "VanossGaming", where he would later find sustained success. Signing with multi-channel network (MCN) Machinima early in his career to monetize content, Fong was regularly the most viewed Machinima channel during his time with the MCM; "VanossGaming" was also one of the most subscribed channels on YouTube during the 2010s. Fong has since developed into a central figure in the video game commentary subculture.

<span class="mw-page-title-main">Jukin Media</span> Viral video licensing company

Jukin Media, Inc. is an entertainment company that operates by identifying shareable or otherwise compelling user-generated videos, negotiating with the video owners, and then licensing the videos for third-party use and/or featuring the videos in its own productions. The company was founded in 2009 by Jonathan Skogmo, Aldo Carrascoso and Josh Entman and is headquartered in Los Angeles, California.

YouTube copyright issues relate to how the Google-owned site implements its protection methods. The systems are designed to protect the exclusivity of a given creator and owner and the rights to reproduce their work. YouTube uses automated measures such as copyright strikes, Content ID and Copyright Verification Program. These methods have been criticized for favoring companies and their use of copyright claims to limit usage of uploaded content.

<span class="mw-page-title-main">Otter Media</span> American media company

Otter Media Holdings, LLC was an American digital media company owned by Warner Bros. Discovery. The company was founded in 2014 by AT&T and The Chernin Group as a holding company of the anime streaming service Crunchyroll, in which the latter invested in 2013.

References

  1. 1 2 YouTube. "Multi Channel Networks 101". YouTube . Retrieved May 18, 2013.
  2. 1 2 3 4 5 Davidson, Neil (March 8, 2013). "Can a Multi-Channel Network Boost Your YouTube Marketing Success?". Site Pro News. Archived from the original on July 29, 2017. Retrieved May 19, 2013.
  3. ↑ "Top Networks by Social Blade YouTube Stats". Social Blade. Retrieved August 19, 2013.
  4. ↑ "TCN: A large Sub-network example powered by BroadbandTV". Social Blade. Retrieved March 5, 2015.
  5. ↑ "How to Start a YouTube Network. | YouTube Forum | The #1 YouTube Community | Video Editing, Branding & YouTube Help". Yttalk.com. May 9, 2013. Retrieved August 19, 2013.
  6. ↑ Millar, Michael (April 8, 2013). "Digital product placement creates adverts out of thin air". BBC. Retrieved May 19, 2013.
  7. ↑ "Should I Join a YouTube Network?". YouTube. May 6, 2013. Retrieved August 19, 2013.
  8. ↑ "YouTube Networks: 7 Things You Need to Know « Rocketjump". Rocketjump.com. September 2, 2012. Retrieved August 19, 2013.
  9. ↑ "Introducing Fullscreen Uploader for Facebook Video". Fullscreen. March 25, 2015. Archived from the original on July 7, 2018. Retrieved November 14, 2016.
  10. ↑ "Fullscreen To Spend A Cool Million On Marketing For Smaller Channels". Tubefilter. November 30, 2012. Retrieved November 14, 2016.
  11. ↑ "Big Frame Moves Into Larger Headquarters With Dedicated Production and Sound Studios". Newmediarockstars.com. April 10, 2013. Retrieved August 19, 2013.
  12. ↑ "Turnstyle: Covering Pop Hits On YouTube Is Starting To Pay". Huffingtonpost.com. May 15, 2013. Retrieved August 19, 2013.
  13. ↑ Kanter, Jake (May 16, 2013). "ChannelFlip: TV red tape is driving talent online | News | Broadcast". Broadcastnow.co.uk. Retrieved August 19, 2013.
  14. ↑ "Fullscreen Opens Universal Music Library To Its Artists". Newmediarockstars.com. April 4, 2013. Retrieved August 19, 2013.
  15. ↑ "Universal Music Publishing Group Announces Partnership With Fullscreen and Maker Studios". Newmediarockstars.com. February 14, 2013. Retrieved August 19, 2013.
  16. ↑ Baumann, Drew (April 4, 2013). "Introducing the new FAM experience // Fullscreen". Blog.fullscreen.net. Archived from the original on April 9, 2013. Retrieved August 19, 2013.
  17. ↑ Hamedy, Saba (March 17, 2016). "Fullscreen acquires platform to help creators monetize content, engage with fans". Mashable. Retrieved November 14, 2016.
  18. 1 2 3 Marsden, Rhodri (January 23, 2013). "Channels spawned by YouTube are making a fortune but are the people making the videos missing out?". The Independent. London. Retrieved February 15, 2013.
  19. 1 2 Stuart, Tessa. "Rage Against Machinima". Houston Press. Archived from the original on January 30, 2013. Retrieved February 15, 2013.
  20. ↑ Boumaaza, Bachir. "YT Partners Warning". AtheneWins. Retrieved May 18, 2013.
  21. ↑ Pomerantz, Dorothy. "With Disney Buying Maker, Do All Big Media Companies Need To Up Their YouTube Game?". Forbes. Retrieved April 2, 2014.
  22. ↑ Spangler, Todd (April 2, 2014). "AwesomenessTV Buys YouTube MCN Big Frame for $15 Million". Variety.
  23. ↑ Spangler, Todd (June 26, 2013). "RTL Takes Control of BroadbandTV with $36 Million Investment". Variety. Retrieved June 29, 2015.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.