Update Papers: MULTI-CHANNEL NETWORKS
Content providers are increasingly presenting their material on YouTube in own channels. Multi-Channel Networks (MCNs) bundle and promote them.
Revenues are principally generated via video advertising – 2013 ad revenues on YouTube are expected to increase to USD 5 billion.
In the battle for ad revenues and consumer reach, these networks have become serious competitors to traditional providers of moving pictures.
As a result, companies like Bertelsmann/RTL Group, ProSiebenSat.1 or Time Warner are investing in existing MCNs or setting up their own.
MCNs support content producers and owners of YouTube channels via services such as program planning, production, audience management and digital rights management. In return they earn commissions on ad revenues, which are displayed before, during and after videos.