The new supply chains : the Multichannel Networks

Silver, Jon (2014) The new supply chains : the Multichannel Networks. In Flew, Terry (Ed.) 2014 ICA Regional Conference : Digital Transformations, Social Media Engagement and the Asian Century, 1-3 Oct 2014, Queensland University of Technology - Gardens Point, Brisbane, Qld. (Unpublished)

Abstract

Digital innovation is transforming the media and entertainment industries. The professionalization of YouTube’s platform is paradigmatic of that change. The 100 original channel initiative launched in late 2011 was designed to transform YouTube’s brand through production of a high volume of quality premium video content that would more deeply engage its audience base and in the process attract big advertisers. An unanticipated by-product has been the rapid growth of a wave of aspiring next-generation digital media companies from within the YouTube ecosystem. Fuelled by early venture capital some have ambitious goals to become global media corporations in the online video space. A number of larger MCNs (Multi-Channel Networks) - BigFrame, Machinima, Fullscreen, AwesomenessTV, Maker Studios , Revision3 and DanceOn - have attracted interest from media incumbents like Warner Brothers, DreamWorks, Discovery, Bertlesmann, Comcast and AMC, and two larger MCNs Alloy and Break Media have merged. This indicates that a shakeout is underway in these new online supply chains, after rapid initial growth. The higher profile MCNs seek to rapidly develop scale economies in online distribution and facilitate audience growth for their member channels, helping channels optimize monetization, develop sustainable business models and to facilitate producer-collaboration within a growing online community of like-minded content creators. Some MCNs already attract far larger online audiences than any national TV network. The speed with which these developments have occurred is reminiscent of the 1910s, when Hollywood studios first emerged and within only a few years replaced the incumbent film studios as the dominant force within the film industry.

Impact and interest:

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ID Code: 79545
Item Type: Conference Item (Other)
Refereed: No
Additional Information: This paper was presented as part of a panel discussion - "Digital disruption in screen distribution, emerging new TV networks and value chains, and opportunities for Australian innovation" on October 1st, 2014 in Session 1E
Additional URLs:
Keywords: digital disruption, youtube, multi channel network, MCN, digital distribution
Divisions: Current > Research Centres > ARC Centre of Excellence for Creative Industries and Innovation
Current > QUT Faculties and Divisions > Creative Industries Faculty
Current > Schools > School of Media, Entertainment & Creative Arts
Copyright Owner: Copyright 2014 Jon Silver
Deposited On: 19 Dec 2014 04:38
Last Modified: 23 Dec 2014 02:10

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