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Multi-channel network

From Wikipedia, in a visual modern way
For a kind of service that delivers multiple linear television channels to consumers, see Multichannel television. For other uses, see Multichannel.

A multi-channel network (MCN) is an organization that works with video platforms to offer assistance to a channel owner 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]

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Video

Video

Video is an electronic medium for the recording, copying, playback, broadcasting, and display of moving visual media. Video was first developed for mechanical television systems, which were quickly replaced by cathode-ray tube (CRT) systems which, in turn, were replaced by flat panel displays of several types.

Computing platform

Computing platform

A computing platform or digital platform is an environment in which a piece of software is executed. It may be the hardware or the operating system (OS), even a web browser and associated application programming interfaces, or other underlying software, as long as the program code is executed with it. Computing platforms have different abstraction levels, including a computer architecture, an OS, or runtime libraries. A computing platform is the stage on which computer programs can run.

Channel (broadcasting)

Channel (broadcasting)

In broadcasting, a channel or frequency channel is a designated radio frequency, assigned by a competent frequency assignment authority for the operation of a particular radio station, television station or television channel.

Digital rights management

Digital rights management

Digital rights management (DRM) is the management of legal access to digital content. Various tools or technological protection measures (TPM) like access control technologies, can restrict the use of proprietary hardware and copyrighted works. DRM technologies govern the use, modification and distribution of copyrighted works and of systems that enforce these policies within devices. DRM technologies include licensing agreements and encryption.

Advertising revenue

Advertising revenue

Advertising revenue is the monetary income that individuals and businesses earn from displaying paid advertisements on their websites, social media channels, or other platforms surrounding their internet-based content. In September 2018, the U.S Internet advertising market was estimated to be worth $111 billion, with market share being held mostly between Google, Facebook, Amazon, and Microsoft. These companies earn revenue through online advertising but also have initiated pathways for individual users and social media influencers to earn an income. Individuals and businesses can earn advertising revenue through advertisement networks such as Google AdSense, YouTube monetization, or Outbrain.

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] 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]

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YouTube Next Lab and Audience Development Group

YouTube Next Lab and Audience Development Group

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.

YouTube

YouTube

YouTube is an American global online video sharing and social media platform headquartered in San Bruno, California, United States. It was launched on February 14, 2005, by Steve Chen, Chad Hurley, and Jawed Karim. It is owned by Google and is the second most visited website, after Google Search. YouTube has more than 2.5 billion monthly users, who collectively watch more than one billion hours of videos each day. As of May 2019, videos were being uploaded at a rate of more than 500 hours of content per minute.

Cable television

Cable television

Cable television is a system of delivering television programming to consumers via radio frequency (RF) signals transmitted through coaxial cables, or in more recent systems, light pulses through fibre-optic cables. This contrasts with broadcast television, in which the television signal is transmitted over-the-air by radio waves and received by a television antenna attached to the television; or satellite television, in which the television signal is transmitted over-the-air by radio waves from a communications satellite orbiting the Earth, and received by a satellite dish antenna on the roof. FM radio programming, high-speed Internet, telephone services, and similar non-television services may also be provided through these cables. Analog television was standard in the 20th century, but since the 2000s, cable systems have been upgraded to digital cable operation.

Turner Broadcasting System

Turner Broadcasting System

Turner Broadcasting System, Inc. was an American television and media conglomerate. Founded by Ted Turner and based in Atlanta, Georgia, it merged with Time Warner on October 10, 1996. As of April 2022, all of its assets are now owned by Warner Bros. Discovery (WBD). The headquarters of Turner's properties are largely located at the CNN Center in Downtown Atlanta, and the Turner Broadcasting campus off Techwood Drive in Midtown Atlanta, which also houses Turner Studios. Some of their operations are housed within WBD's corporate and global headquarters inside 30 Hudson Yards in Manhattan's West Side district, and at 230 Park Avenue South in Midtown Manhattan, both in New York City, respectively.

CNN

CNN

CNN is a multinational news channel and website headquartered in Atlanta, Georgia, U.S. Founded in 1980 by American media proprietor Ted Turner and Reese Schonfeld as a 24-hour cable news channel, and presently owned by the Manhattan-based media conglomerate Warner Bros. Discovery (WBD), CNN was the first television channel to provide 24-hour news coverage and the first all-news television channel in the United States.

TNT (American TV network)

TNT (American TV network)

TNT is an American basic cable television channel owned by the Warner Bros. Discovery Networks unit of Warner Bros. Discovery (WBD) that launched on October 3, 1988. TNT's original purpose was to air classic films and television series to which Turner Broadcasting maintained spillover rights through its sister station TBS. Since June 2001, the network has shifted its focus to dramatic television series and feature films, along with some sporting events, as TBS shifted its focus to comedic programming.

TBS (American TV channel)

TBS (American TV channel)

TBS is an American pay television network owned by the Warner Bros. Discovery U.S. Networks division of Warner Bros. Discovery (WBD). It carries a variety of programming, with a focus on comedy, along with some sports events, including Major League Baseball, Stanley Cup playoffs, NCAA men's basketball tournament and the weekly professional wrestling show AEW Dynamite. As of September 2018, TBS was received by approximately 90.391 million households that subscribe to a pay television service throughout the United States.

Cartoon Network

Cartoon Network

Cartoon Network is an American cable television channel owned by Warner Bros. Discovery. It is a part of The Cartoon Network, Inc., a division that also has the broadcasting and production activities of Boomerang, Cartoonito, Adult Swim, and Toonami under its purview. The channel is headquartered at 1050 Techwood Drive NW in Atlanta, Georgia.

Turner Classic Movies

Turner Classic Movies

Turner Classic Movies (TCM) is an American movie-oriented pay-TV network owned by Warner Bros. Discovery. Launched in 1994, Turner Classic Movies is headquartered at Turner's Techwood broadcasting campus in the Midtown business district of Atlanta, Georgia.

Discovery, Inc.

Discovery, Inc.

Discovery, Inc. was an American multinational mass media factual television conglomerate based in New York City. Established in 1985, the company operated a group of factual and lifestyle television brands, such as the namesake Discovery Channel, Animal Planet, Science Channel, and TLC. In 2018, the company acquired Scripps Networks Interactive, adding networks such as Food Network, HGTV, and Travel Channel to its portfolio. Since the purchase, Discovery described itself as serving members of "passionate" audiences, and also placed a larger focus on streaming services built around its properties.

Comcast

Comcast

Comcast Corporation, headquartered in Philadelphia, is the largest American multinational telecommunications conglomerate. It is the second-largest broadcasting and cable television company in the world by revenue, the largest pay-TV company, the largest cable TV company and largest home Internet service provider in the United States, and the nation's third-largest home telephone service provider. It provides services to U.S. residential and commercial customers in 40 states and the District of Columbia. As the parent company of the international media company NBCUniversal since 2011, Comcast is a producer of feature films for theatrical exhibition, and over-the-air and cable television programming.

MTV

MTV

MTV is a 24-hour American cable music video channel officially launched on August 1, 1981. Based in New York City, it serves as the flagship property of the MTV Entertainment Group, part of Paramount Media Networks, a division of Paramount Global.

Purpose

An MCN works by a company setting up an account with YouTube CMS (the system used for ContentID), 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]

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Monetization

Monetization

Monetization is, broadly speaking, the process of converting something into money. The term has a broad range of uses. In banking, the term refers to the process of converting or establishing something into legal tender. While it usually refers to the coining of currency or the printing of banknotes by central banks, it may also take the form of a promissory currency. The term "monetization" may also be used informally to refer to exchanging possessions for cash or cash equivalents, including selling a security interest, charging fees for something that used to be free, or attempting to make money on goods or services that were previously unprofitable or had been considered to have the potential to earn profits. And data monetization refers to a spectrum of ways information assets can be converted into economic value.

Product placement

Product placement

Product placement, also known as embedded marketing, is a marketing technique where references to specific brands or products are incorporated into another work, such as a film or television program, with specific promotional intent. Much of this is done by loaning products, especially when expensive items, such as vehicles, are involved. In 2021, the agreements between brand owners and films and television programs were worth more than US$20 billion.

Market exposure

Market exposure

In finance, market exposure is a measure of the proportion of money invested in the same industry sector. For example, a stock portfolio with a total worth of $500,000, with $100,000 in semiconductor industry stocks, would have a 20% exposure in "chip" stocks.

Audience

Audience

An audience is a group of people who participate in a show or encounter a work of art, literature, theatre, music, video games, or academics in any medium. Audience members participate in different ways in different kinds of art. Some events invite overt audience participation and others allow only modest clapping and criticism and reception.

Engagement

Engagement

An engagement or betrothal is the period of time between the declaration of acceptance of a marriage proposal and the marriage itself. During this period, a couple is said to be fiancés, betrothed, intended, affianced, engaged to be married, or simply engaged. Future brides and grooms may be called fiancée (feminine) or fiancé (masculine), the betrothed, a wife-to-be or husband-to-be, respectively. The duration of the courtship varies vastly, and is largely dependent on cultural norms or upon the agreement of the parties involved.

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:

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Hank Green

Hank Green

William Henry Green II is an American vlogger, science communicator, entrepreneur, author, internet producer, and musician. He is known for producing the YouTube channel Vlogbrothers with his older brother, author John Green, as well as for creating and hosting the educational YouTube channels Crash Course and SciShow. He has also advocated for and organized social activism, created and hosted a number of other YouTube channels and podcasts, released music albums, and amassed a large following on TikTok.

Freddie Wong

Freddie Wong

Freddie Wong is an American Internet celebrity, filmmaker, VFX artist, podcaster, and competitive gamer. Wong has participated in at least three YouTube channels; with RocketJump, his production company's main channel, supporting over 9 million subscribers; BrandonJLa, a channel including behind the scenes videos and other content, which holds over 1.1 million subscribers; and Node, a gaming channel with over 3.2 million subscribers. He is also known for creating the web series Video Game High School.

Cost per mille

Cost per mille

Cost per mille (CPM), also called cost per thousand (CPT), is a commonly-used measurement in advertising. It is the cost an advertiser pays for one thousand views or impressions of an advertisement. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of exposing the ad to one thousand viewers or listeners. It is used in marketing as a benchmarking metric to calculate the relative cost of an advertising campaign or an ad message in a given medium.

Music licensing

Music licensing

Music licensing is the licensed use of copyrighted music. Music licensing is intended to ensure that the owners of copyrights on musical works are compensated for certain uses of their work. A purchaser has limited rights to use the work without a separate agreement.

Copyright

Copyright

A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educational, or musical form. Copyright is intended to protect the original expression of an idea in the form of a creative work, but not the idea itself. A copyright is subject to limitations based on public interest considerations, such as the fair use doctrine in the United States.

Controversies

Further information: Disney Digital Network § Criticism

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 high-profile 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]

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DreamWorks Animation

DreamWorks Animation

DreamWorks Animation LLC is an American animation studio that produces animated films and television programs and is a subsidiary of Universal Pictures, a division of NBCUniversal, which is itself a division of Comcast. The studio has released 44 feature films as of December 2022, including several of the highest-grossing animated films of all time, with Shrek 2 (2004) having been the highest at the time of its release. The studio's first film, Antz, was released on October 2, 1998, and its latest film was Puss in Boots: The Last Wish, which was released on December 21, 2022; their upcoming slate of films includes Ruby Gillman, Teenage Kraken on June 30, 2023, Trolls Band Together on November 17, 2023, and Kung Fu Panda 4 on March 8, 2024. Additionally, two untitled films are scheduled to be released on February 9, 2024, and September 27, 2024.

RTL Group

RTL Group

RTL Group is a Luxembourg-based international media conglomerate, with another corporate centre in Cologne, Germany. The company operates 68 television channels and 31 radio stations in Germany, France and other European countries. It also offers national streaming platforms, content productions and a range of digital services. Important segments of RTL Group are RTL Deutschland, Groupe M6, Fremantle and RTL Nederland.

BroadbandTV Corp

BroadbandTV Corp

BroadbandTV Corporation 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, Viacom, and Sony Pictures.

Source: "Multi-channel network", Wikipedia, Wikimedia Foundation, (2023, March 12th), https://en.wikipedia.org/wiki/Multi-channel_network.

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Further Reading

Frederator Studios

Machinima, Inc.

Blip.tv

Disney Digital Network

Syndicate (Internet personality)

Warner/Chappell Music Inc. v. Fullscreen Inc.

Diwan Videos

Danny Zappin

Jukin Media

Otter Media
See also
References
  1. ^ a b YouTube. "Multi Channel Networks 101". YouTube. Retrieved May 18, 2013.
  2. ^ a b c d e Davidson, Neil (March 8, 2013). "Can a Multi-Channel Network Boost Your YouTube Marketing Success?". Site Pro News. 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. 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. 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. ^ a b c 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. ^ a b 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.
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