With the rise of online video, multi-channel networks have become more and more prominent. It’s highly likely that you’ve seen content posted from one or by creators affiliated with an MCN. So, how do they work and what benefits do they bring to the table?
What is a Multi-Channel Network?
An MCN or Multi-Channel Network is an organization that curates video content and posts it to platforms like YouTube. An MCN will partner with content creators and help them in several areas, including product, programming, funding, cross-promotion, partner management, digital rights management, monetization and sales, and audience development.
MCNs find YouTube channels and aggregate their content to maximize viewership. They take a cut of the revenue while providing management services and dealing with a lot of the red tape. Vevo is a great example of an MCN, as it doesn’t produce content but does publish it for other creators.
As each successive generation has been getting less and less likely to engage with traditional media, MCNs are much like TV channels that broadcast shows or buy up rerun rights for properties. They don’t produce anything on their own but partner with artists and content creators to push their work.
The business model relies on ad revenue mostly, but can also benefit from other sources of revenue. Sponsorships and events can also be another secondary source of revenue for these organisations. Many traditional media organisations like Universal Music Group have started MCNs but most networks are new, digital media companies.
You can’t be expected to create a new YouTube channel and be instantly picked up by some high-ranking company. They often hire tried and tested channels that already have potential.
Benefits of MCNs
MCNs have partnerships with many popular YouTube channels and influencers. Brands seeking collaborations with major influencers can leverage MCNs’ talent rosters. YouTube creators often partner with MCNs since they can manage the monetary aspects, promotion, and legal aspects of the business. Think of it as being similar to having a manager and letting them do a lot of the heavy lifting for the paperwork. This can be freeing for some but can also come with constraints depending on the contract they sign.
Channel Promotion is a major aspect of an MCN and its duties. As they promote their affiliated channels across their network, they can maximize reach. Alongside this, MCNs allow for better networking and collaboration opportunities between large and small channels.
There are also monetary benefits. The primary goal of MCNs is to increase influencers’ earning potential by creating endorsement deals and promotional services. They can have a better reach within the industry allowing for their creators to acquire sponsorships and deals. MCNs can even provide creators with spaces and resources for video production and editing, which can be a major money-saver.
They can also bring some brand recognition to the table. A creator associated with a big company can convey their legitimacy to potential audiences. Being hired by an MCN for YouTube can also provide a lot of existing knowledge from marketing professionals.
Cons of YouTube Multi-Channel Networks
While there are many benefits to MCNs, some of the downsides can be worth being wary of. Originally focused on managing popular influencers, many MCNs have diversified their responsibilities and been acquired by outside entities, potentially diluting their core purpose. They will also take a percentage of AdSense revenue, so it’s best to weigh up whether their services are worth it.
Since MCNs primarily represent major YouTube creators with large audiences, they often leave out niche creators. This can mean fewer options for brands seeking niche or specialized influencers, especially when they are selling products that have a focused demographic.
A relationship with an MCN can also be fraught with disagreements about content. This could hamper the content creation processes and lead to arguments about creative control. Contractual aspects like this need to be thought through. Depending on the type of contract, this could also lead to copyright issues between the company and the creator.
Aside from this, the process of adding an entire company into a creator’s workflow could substantially slow down output. Multi-channel networks on YouTube tend to be big business, and with that comes a lot of bureaucracy.
Prominent YouTube MCNs
Vevo: Joint-owned by Universal Music Group and Sony Music Entertainment, Vevo is one of the largest distributors of premium music videos online. The company syndicates official music videos and original programming across various platforms and takes a cut of the ad money. It has partnerships with major streaming services and TV providers to distribute linear channels and on-demand content.
BroadbandTV Corp (BBTV): Owned by Bertelsmann, BBTV is one of the largest multi-platform networks, with a network of over 85,000 content creators and channels. It operates across multiple verticals like gaming, music, entertainment, and more. BBTV provides services like content programming, monetization, audience development, and rights management to its creator partners in exchange for a revenue share.
Universal Music Group: UMG is one of the famous “big three” major record labels. Aside from having co-ownership of Vevo, It owns and operates several major record labels. They curate their own online content and manage their music copyrights online through the MCN.
Disney Digital Network (Maker Studios): Disney Digital Network, formerly known as Maker Studios, was a major multi-channel network acquired by Disney in 2014. It managed a network of online video channels and creators across various verticals. However, Disney shut down the Maker Studios business unit in 2019 as part of a restructuring.
As YouTube marketing trends show, it is a major source of the millennial advertising market. This is why most MCNs work on it. Other sites like Vimeo also have their fair share of organizations but YouTube is by far the largest, representing 63% of all videos watched worldwide.
