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A multi-channel network (MCN) is an organization that works with
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) sy ...
platforms to offer assistance to a channel owner in areas such as "product, programming, funding, cross-promotion, partner management,
digital rights management Digital rights management (DRM) is the management of legal access to digital content. Various tools or technological protection measures (TPM) such as access control technologies can restrict the use of proprietary hardware and copyrighted work ...
, monetization and sales, and audience development," in exchange for a percentage of the ad revenue from the channel.


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 YouTube is a global online video sharing and social media platform headquartered in San Bruno, California. It was launched on February 14, 2005, by Steve Chen, Chad Hurley, and Jawed Karim. It is owned by Google, and is the second mo ...
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. 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 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 broa ...
and
Turner Broadcasting Turner Broadcasting System, Inc. (alternatively known as Turner Entertainment Networks from 2019 until 2022) was an American television and media conglomerate. Founded by Ted Turner and based in Atlanta, Georgia, it merged with Time Warner ( ...
(home of CNN, TNT, TBS,
Cartoon Network Cartoon Network (often abbreviated as CN) 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, ...
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 Turner may refer to: People and fictional characters *Turner (surname), a common surname, including a list of people and fictional characters with the name * Turner (given name), a list of people with the given name *One who uses a lathe for turni ...
,
Discovery Discovery may refer to: * Discovery (observation), observing or finding something unknown * Discovery (fiction), a character's learning something unknown * Discovery (law), a process in courts of law relating to evidence Discovery, The Discove ...
,
Disney The Walt Disney Company, commonly known as Disney (), is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California. Disney was originally founded on October ...
,
Comcast Comcast Corporation (formerly known as American Cable Systems and Comcast Holdings),Before the AT&T merger in 2001, the parent company was Comcast Holdings Corporation. Comcast Holdings Corporation now refers to a subsidiary of Comcast Corpora ...
and
MTV MTV (Originally an initialism of Music Television) is an American cable channel that 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 di ...
Networks that owned and operated multiple channels ("multi-channel"). The MCN name was born within YouTube and its ecosystem. Sub-networks of MCNs are known as SubMCNs, Virtual Networks, Proprietary Networks, Content Distribution Networks, SMCNs, VNs, PNs, or CDNs.


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 Monetization ( also spelled monetisation) 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 tend ...
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." Advertisers who work with MCNs can pay for services including overlay adverts,
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 th ...
and in show
sponsorships Sponsoring something (or someone) is the act of supporting an event, activity, person, or organization financially or through the provision of products or services. The individual or group that provides the support, similar to a benefactor, is k ...
, aiming to gain repeated exposure, endorsement by YouTube personalities, and increased
audience An audience is a group of people who participate in a show or encounter a work of art, literature (in which they are called "readers"), theatre, music (in which they are called "listeners"), video games (in which they are called "players"), o ...
engagement An engagement or betrothal is the period of time between the declaration of acceptance of a marriage proposal and the marriage itself (which is typically but not always commenced with a wedding). During this period, a couple is said to be ''fi ...
, especially compared with
television advertisements A television advertisement (also called a television commercial, TV commercial, commercial, spot, television spot, TV spot, advert, television advert, TV advert, television ad, TV ad or simply an ad) is a span of television programming produce ...
which are often ignored or skipped.


Benefits

The benefits and drawbacks of partnering with a multi-channel network have been discussed by several high-profile YouTube creators, including Hank Green, Freddie Wong as well as YouTube itself. The possible benefits can include: * Access to video creation and publishing tools * Marketing and promotion * Access to production and editing facilities * Higher CPM * Access to traditional media projects and celebrities * Cover song and background music licenses on
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, educatio ...
ed music * Live events and merchandise


Controversies

There have been several controversies involving YouTube Networks.
Machinima Machinima, originally machinema () is the use of real-time computer graphics engines to create a cinematic production. Most often, video games are used to generate the computer animation. The word "machinima" is a portmanteau of the words ''m ...
has been criticized for the use of perpetual contracts. Ben Vacas, known to the YouTube community as "Braindeadly", attracted media attention in January 2013 over contractual issues with Machinima. 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. However, the contract also disclosed that it existed "in perpetuity"; 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. 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.


Purchases

Several MCNs have been purchased by larger corporations. In early 2014 Maker Studios was sold to
Disney The Walt Disney Company, commonly known as Disney (), is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California. Disney was originally founded on October ...
for $500 million, and Big Frame was sold to
DreamWorks Animation DreamWorks Animation LLC (DWA, also known as DreamWorks Animation Studios and simply known as DreamWorks) is an American animation studio that produces animated films and television programs and is a subsidiary of Universal Pictures, a divisio ...
through AwesomenessTV for $15 million. In June 2013,
RTL Group RTL Group (for "Radio Television Luxembourg") 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 ...
invested $36 million in BroadbandTV Corp.


See also

* List of multi-channel networks *
Cost per impression Cost per impression (CPI) and cost per thousand impressions (CPM) are terms used in traditional advertising media selection, as well as online advertising and marketing related to web traffic. They refer to the cost of traditional advertising or ...


References

{{YouTube navbox YouTube Online advertising services and affiliate networks