Quoted: YouTube networks aim high

“We want to be the next Viacom, the next Disney, the next NBCUniversal. We feel like we’re on that path.”

George Strompolos, CEO and founder of Fullscreen, one of the top multichannel networks (MCN) on YouTube. MCNs bundle together YouTube channels from independent creators, with whom they share ad revenue. And the big, established media companies are doing more than just taking notice. For example, Disney bought Maker Studios (which has 55,000 channels and 8.5 billion monthly video views) for an initial $500 million, with hundreds of millions more promised depending on performance, according to Bloomberg Businessweek. What makes MCNs so valuable? Many of their viewers are young, and therefore coveted by advertisers. Although some reports say not all advertisers have been quick to jump on board the YouTube train, big Hollywood names such as Jeffrey Katzenberg see plenty of potential: “I still feel like this platform is in its infancy,” he told Bloomberg Businessweek. “I want to be a part of this as it grows.”

 

Photo from Reuters archives

Levi Sumagaysay Levi Sumagaysay (4060 Posts)

Levi Sumagaysay is editor of the combined SiliconBeat and Good Morning Silicon Valley. She also helps take care of SiliconValley.com, the Mercury News tech website. Email: lsumagaysay (at) bayareanewsgroup (dot-com).