MCNs key to reaching younger online video viewers
DetailsEditor | 06 May 2015
With the American market projected to have 200 million online video viewers by 2016, multichannel networks (MCNs) will be key to capture the increasingly vital millennial market says Parks Associates.
The analyst's Webisodes to Multichannel Networks: Future Content Opportunities report found that of the country's online video viewers, the 18-24 millennial age group watches 5.5 hours of Internet video per week on a smartphone and six hours per week on a tablet, often favouring short-form YouTube content.
"Millennials, who watch the most Internet video content, have been a difficult demographic for content providers and distributors to reach," said Parks research analyst Glenn Hower. "As audiences for Internet video personalities grow, content companies have taken note of the potential to leverage these viewers and monetise Internet video by aggregating creator channels into multichannel networks."
In its examination, Parks noted that over the last 12 months, traditional content companies such as AMC Networks, Hearst Corporation, The Walt Disney Company, and Warner Bros have invested over $640 million in MCNs, to aggregate multiple online video channels and provide assistance in funding, promotion, partner management, digital rights management, monetisation and audience development. The analyst also cited as players services such as the recently launched Vessel, Discovery Communications, Universal Sports and independent creators like GloZell, Veritasium and Weezy Waiter.