A multi-channel network (MCN) is an organization that works with

video Video is an Electronics, electronic medium for the recording, copying, playback, broadcasting, and display of moving picture, moving image, visual Media (communication), media. Video was first developed for mechanical television systems, whi ...

platforms to offer assistance to channel owners 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, such as access control technologies, can restrict the use of proprietary hardware and copyrighted works. DRM ...

, 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 an American social media and online video sharing platform owned by Google. YouTube was founded on February 14, 2005, by Steve Chen, Chad Hurley, and Jawed Karim who were three former employees of PayPal. Headquartered in ...

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 broadcast programming, programming to consumers via radio frequency (RF) signals transmitted through coaxial cables, or in more recent systems, light pulses through fibre-optic cables. This ...

and

Turner Broadcasting Turner Broadcasting System, Inc. was an American television and media conglomerate founded by Ted Turner in 1965. Based in Atlanta, Georgia, it merged with Time Warner (later WarnerMedia) on October 10, 1996. As of April 2022, all of its ass ...

(home of CNN, TNT, TBS,

Cartoon Network Cartoon Network (CN) is an American cable television television channel, channel and the flagship property of the Cartoon Network, Inc., a sub-division of the Warner Bros. Discovery Networks division of Warner Bros. Discovery. It launched on ...

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 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 Discovery ...

Disney The Walt Disney Company, commonly referred to as simply Disney, is an American multinational mass media and entertainment industry, entertainment conglomerate (company), conglomerate headquartered at the Walt Disney Studios (Burbank), Walt Di ...

Comcast Comcast Corporation, formerly known as Comcast Holdings,Before the AT&T Broadband, AT&T merger in 2001, the parent company was Comcast Holdings Corporation. Comcast Holdings Corporation now refers to a subsidiary of Comcast Corporation, not th ...

and MTV 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 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." Advertisers who work with MCNs can pay for services including overlay adverts, product placement 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"), or ...

engagement, especially compared with television advertisements 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 legal 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, ...

ed music * Live events and merchandise

Controversies

There have been several controversies involving YouTube Networks.

Machinima Machinima () is the use of Real-time computing, real-time computer graphics engines to create a cinematic production. The word "Machinima" is a portmanteau of the words ''machine'' and ''Film, cinema''. According to Guinness World Records, ma ...

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 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

for $500 million, and Big Frame was sold to DreamWorks Animation through AwesomenessTV for $15 million. In June 2013, RTL Group invested $36 million in BroadbandTV Corp.

References