The name multi-channel network has only recently begun to be standard, coined by former YouTube employee Jed Simmons. Prior to 2014 many names were used by the different companies, including Online Video Studio, Internet Television Company, YouTube Network or simply Network. Sub-networks of MCNs are known as SubMCNs, Virtual Networks, Proprietary Networks, Content Distribution Networks, SMCNs, VNs, PNs, or CDNs.
Purpose
They work by a company setting up an account with YouTube CMS, the company adds anyone who signs a contract with them to their CMS, allowing users to use monetization, block and track policies. Monetization allows for videos to generate revenue, Block prevents access to videos and Track allows content owners to see the analytics of 'reuploads' and copyright infringing content. Some MCN partners can block videos by country. MCNs have been described as a means to "negate the hassle involved when seeking out your own advertising opportunities on the site." Advertisers who work with MCNs can pay for services including overlay adverts, product placement and in show sponsorships, aiming to gain repeated exposure, endorsement by YouTube personalities, and increased audience engagement, especially compared with television advertisements which are often ignored or skipped.
Benefits
The benefits and drawbacks of partnering with a multi-channel network have been discussed by several high-profile YouTube creators, including Hank Green, Freddie Wong as well as YouTube itself. The possible benefits can include:
There have been several controversies involving YouTube Networks. Machinima has been criticised for the use of perpetual contracts. Ben Vacas, known to the YouTube community as "Braindeadly", attracted media attention in January 2013 over contractual issues with Machinima. Under the terms of his contract, Machinima were permitted to place advertisements on Vacas's videos and in return he would receive a percentage of the profits generated. However, the contract also disclosed that it existed "in perpetuity"; meaning Machinima would hold the rights to any content created by Vacas published on his partnered YouTube channel in his lifetime, a detail Vacas failed to read. Machinima was criticised in early 2013 by high-profile YouTuber Athene for "intimidating... multiple partners" to sign a contract that would significantly lower their CPM. Athene called it "one of the worst deals on the internet" and advised his subscribers not to "sign with Machinima" stating that they could get a better arrangement with other networks.
