Multi channel Networks (MCNs) have gained tremendous exposure and valuation in recent months, especially riding the success of YouTube viewership and content creation. MCNs have offered YouTube content creators value and assistance in areas such as product, programming, funding, monetization, cross-promotion, partner management and audience development. As a result of incredible growth in this industry segment, MCNs have been given some very high valuations in the M&A marketplace, including Disney’s acquisition of Makers Studios for $500 million and Dreamworks $117 million deal with Awesomeness TV, to name a couple.
We believe that the MCN model will quickly evolve beyond YouTube, as TV broadcasters, networks and service providers, as well as new OTT market entrants, will begin to build out MCN businesses, which will increasingly include OTT content creators, in addition to “TV” content. For example, local TV broadcasters are looking online for fresh news content that will supplement local TV news, in hopes of reaching millennials. TV distributors will be interested in the MCN model because they are leveraging their networks and content into multiplatform OTT distribution, therefore offer reach and legitimacy in the space. New MCNs in the OTT-TV market can offer content creators audience building and cross-promotion, monetization, programming/channel optimization, distribution/publishing rights management, and even funding and production assistance. The MCN model opens a source for new content for broadcast TV networks and service providers, as well as OTT-TV, so traditional media companies can use MCN models to mine content creators they can elevate to broadcast TV formats.
To help catalyze the emergence of Multichannel Networks, Endavo has launched its new MCN Platform, which fully empowers the next-generation of OTT TV. Endavo now enables OTT video service providers with a turnkey, cloud-based solution that serves as a cost-effective platform to fast-track content ingestion, management, distribution and monetization of OTT channels over connected devices, with seamless and amazing user experiences.