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Before TikTok became all the rage, there was YouTube. And at one point in my life, YouTube content creators were all I ever watched. If I had a dollar for every minute I had spent on watching gameplays of Slender Man to fashion hauls, I would have been a millionaire by now.
Multichannel networks (MCNs) are not new to fans of YouTube creators like me: They were once the only way for creators on the video platform to earn income, which can go up to millions of dollars. This has garnered the attention of investors and even entertainment powerhouse Disney, which acquired a MCN for US$675 million. But the heyday of these networks seems to be coming to an end.
Today we look at,
- How multibillion-dollar MCNs lost their appeal and tried to pivot
- Why Alibaba made its first loss since 2014
- Other newsy highlights such as China’s removal of 90 apps and Amazon’s rollout of: a free video-streaming service in India
PREMIUM SUMMARY
How MCNs are making a comeback
One of the most sought-after careers among children these days is to be a YouTube star. And most YouTubers make their money through MCNs, which connect content creators with advertisers. With YouTube’s annual advertising revenue hitting billions of dollars, it’s not surprising then that investors want a piece of that pie.
- In the limelight: Between 2012 to 2014, investors poured US$1.65 billion into MCNs. A couple of huge acquisitions also took place: Disney bought Maker Studios for US$675 million and Otter Media spent between US$200 million to US$300 million for a majority stake in Fullscreen.
- Back to one: MCNs depended heavily on YouTube, so any policy change would impact them. That’s exactly what happened in 2018: A new YouTube’s policy caused MCNs to drop thousands of creators, indirectly damaging the companies’ revenue as well as venture capital firms’ interest in the space.
- Pivot in action: To keep themselves afloat, MCNs had to pivot. For instance, Vietnam-based Pops Worldwide ventured into creating original content by launching a historical drama series. On the other hand, Singapore-based Bloomr.SG offers software-as-a-service tools for content creators to monetize their work.
Read more: Can Asia’s content creators avoid the ghosts of the past?
STARTUP SPOTLIGHT
Alibaba makes its first loss since 2014
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