A marketer’s Guide to Multi-Channel Networks
Despite being almost 10 years old, YouTube is still growing at an impressive rate. According to the company, a head spinning “100 hours of video are uploaded to YouTube every minute” and “over 6 billion hours watched each month” — a 50 percent increase from last year. Along with age and a bevy of impressive numbers, a solid revenue model has begun to develop in the digital space, one that startups and existing brands alike want a piece of! To bridge the gap between talented YouTube stars and the production resources necessary to publish, distribute, and promote high-quality, revenue-minded videos, multi-channel networks were created.
Multi-channel networks are essentially YouTube movie studios that enter into contracts with YouTubers and give them the means to create videos and expand viewership on their already existing YouTube channels. The economic model is still developing but has shown promise in the rise of several flourishing studios and brands willing to take a chance with them.
By examining what makes these multi-channel networks successful, the image of how brands have and will continue to utilize them becomes much more apparent.
Maker Studios
The studio behind one of YouTube’s most faithfully viewed series, “Epic Rap Battles of History,” is an advertiser’s dream. Maker Studios boasts more than 15,000 channels, 165 million subscribers, and more than an astounding 3 billion views per month.
The studio has managed to sign YouTube stars like Mike Tompkins, an a cappella sensation, but has also legitimized itself by working with notable mainstream stars like Snoop Dogg and Robert De Niro. The trend of A-list performers appearing on multi-channel network videos (and even YouTube personalities appearing on television) is one that will continue to grow as more and more people stream video online.
Perhaps the most attractive statistic about Maker Studios is who is tuning in. Eight percent of Maker Studios’ 210 million unique monthly viewers are in the 13 to 34 age demographic, a very attractive core of Millennials — potentially long-term brand loyalists.
FullScreen
A recent round of funding and a steadily increasing viewership have FullScreen high in the mix of YouTube’s best multi-channel networks. FullScreen offers more than 15,000 YouTube channels, including comedian David So and musician Tyler Ward, 200 million subscribers, and more than 2.5 billion monthly views.
Traditionally, FullScreen has kept its focus on the distribution of videos, enticing personalities with tools that will help them reach a much wider audience. Just like YouTube though, FullScreen is expanding and is planning to increase focus on the actual video production and creation of published works. By working with a studio that provides the resources for video production, brands can have more confidence in how their investment will turn around.
Niche Studios
There are also multi-channel networks that appeal to specific niches, like Machinima for gamers, Tastemade for foodies, and StyleHaul for fashionistas.
Machinima features video game tips, tricks, news, and recently wrapped up “Forward Unto Dawn,” the first ever live-action “Halo” series, which was received well overall.
This gaming multi-channel network receives more than 2.2 billion monthly views and more than 7,500 subscribers. However, like Maker Studios, the most interesting statistic is who is actually watching: 25 percent of males between the ages of 18 and 34 who are streaming video online are also watching Machinima. Clear cut data like this are a huge reason why brands are chomping at the bit to get involved with multi-channel networks.
For those hungrily watching videos on YouTube, Tastemade is the food multi-channel network filling everyone’s appetite. More than 200,000 subscribers make Tastemade one of the more successful niche studios, achieving more than 18 million views on videos that include recipes, cooking shows, and even travel segments. The future of Tastemade is looking bright: The studio recently closed a round of funding that brought in $10 million!
Also, successfully positioned in the niche market is StyleHaul, a multi-channel network for style, fashion, and beauty. An audience of more than 38 million YouTube viewers has access to 950 fashion-related channels.
Let’s take a look at how brands have already participated.
Brands and multi-channel networks
There is plenty of room in this growing space for brands to jump on and be a part of things early. There are also plenty of different ways brands can get involved, including show sponsorships, product placements, and more.
Multi-channel networks can also act as consultants for brands, just how NBC and FullScreen work together. FullScreen provides around the clock management for NBC’s hub channel as well as several other NBC channels like “The Tonight Show,” “America’s Got Talent,” and “Revolution.” FullScreen also provides NBC with consulting on content for the channels. Besides NBC, FullScreen has also worked with Pepsi, Nintendo, and Ford, among others.
Another way brands can be involved with multi-channel networks is by being present on already established YouTube channels. One great example of this is the pairing of Maker Studios’ Mike Tompkins and the Universal Studios film “Pitch Perfect.” The a cappella YouTube star promoted the movie about collegiate a cappella in a unique way. His channel sparked excitement for the film by crowdsourcing clips of YouTube fans’ a cappella performances and putting them together into one a cappella masterpiece. The video currently has nearly 7 million views, 2.6 million of which were before the movies release, and is a piece of the “Pitch Perfect” DVD bonus features.
In addition, check out Nate Nielsen of New Element Films and his rather strange, highly viral promotion for Pepsi Max. To promote Pepsi’s ginseng-filled cola, Nate filled a bathtub with more than 300 cans of Pepsi Max, and as any sane person would do, proceeded to take a bath in it. The video drew more than a million YouTube views, and with Pepsi Max cans, cases, and soda filling the entire screen (and 83 percent likes), it’s safe to say Pepsi’s product placement was successful.
Future of multi-channel networks
The future of multi-channel networks is looking bright, however, there will be obstacles along its growth. Most immediately, online content creators will have to navigate the choppy waters of redistributing already published content, particularly in the form of cover songs being performed and making profits. Currently, FullScreen is battling a lawsuit filed by the National Music Publishers Association and the outcome will surely set a precedent for future operations in the online space.
On the bright side, YouTube videos are continuing to be watched by massive amounts of people and those numbers are only increasing. Brands and multi-channel networks alike have realized the potential for profit on YouTube, and it will only be a matter of time before a large majority of brands are present in the space.
Multi-channel networks are creating a Hollywood-industry-like feel on YouTube, complete with contracts, stars, and increasing revenue. Undoubtedly, the next few years will tell us a lot about the future of multi-channel networks.
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