The Birth of a Video-Sharing Giant
YouTube.com was activated on February 14, 2005. On April 23, 2005, the first YouTube video was uploaded. Entitled Me at the Zoo, it features YouTube co-founder Jawed Karim at the San Diego Zoo.
YouTube’s Evolution and The Million Dollar Question
While the world’s third most popular website, behind Google and Facebook, has changed over the years, one question remains: How do I make money on YouTube?
Leveraging Multi-Channel Networks for Growth
Get someone to do it for you while you focus on your craft and upload great content. One way is through a “multi-channel network” – an MCN. They aggregate YouTube channels, and attempt to help creators get better advertising rates, sponsorship opportunities, and much larger audiences.
Top Players in the Multi-Channel Network Space
Three of the most popular MCN’s, in no particular order, are Fullscreen, Maker Studios (which sold itself to Disney for $500 million) and Studio71, each with their own identity, and each boosting billions of monthly views.
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What Attracts an MCN to Your Channel?
If you’re creating something engaging and unique, even if it isn’t in a typical YouTube genre, you might have exactly what an MCN is trying to find.
Key Considerations Before Signing with an MCN
If you grab the attention of an MCN and they want to sign you up, here are some tips regarding some of the deal points you should encounter:
- The duration of the agreement. While one factor is the actual number of months/years of the term, a related consideration is the MCN’s ability to extend the term.
- The money. As with most agreements regarding profit sharing, the devil is in the details. You might be getting a healthy percentage of the net revenue, but make sure you understand what expenses incurred by the MCN are reimbursed through your revenues before you get paid.
- Creative control. Who has it? Can the MCN censor your content if they don’t like it?
- Minimum video requirements. Are you being required to upload daily? Only sign up for what you can handle, and ideally avoid a minimum required output.
- Promotion. You will likely be required to promote other channels in the MCN. Make sure you get promoted on other channels too and find out what else the MCN has in store to increase your audiences, which in turn increases your revenues.
Doing Your Due Diligence
Don’t be afraid to ask what the MCN’s existing members earn, and what corporate sponsors they are working with who would be a good fit to organically advertise in your work.
Evaluating Your Needs and MCN Offerings
YouTubers should consider asking themselves, what would make their life easier when making, distributing and monetizing videos, and seeing which MCN, if any, can provide a great solution, but only if the agreement terms are worth it.
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© 2018 Edwards Creative Law, LLP – Updated to June 14, 2023
Edwards Creative Law is Canada’s Entertainment Law Boutique™, providing legal services to Canadians, and international clients who partner with Canadians, in the Film & Television, Music, Video Games and Apps, Publishing and Literary industries.
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* This blog is for general informational purposes only and is not to be construed as legal advice. Please contact Edwards Creative Law or another lawyer, if you wish to apply these concepts to your specific circumstances.
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