About Report

  VoD, OTT

  Google, Telegraaf Media Groep, Disney, Vivendi, Time Warner, Discovery Communications, RTL Group, ProSiebenSat.1, Dreamworks

Multi-Channel Networks: Valuations tightly linked to viewership

MCNs, as primarily ad-funded businesses, generate revenue broadly proportional to the consumption of content on properties in their portfolios. As a consequence of this, and despite differences in the exact composition and revenue streams of the individual MCNs, valuations of MCN businesses should scale in accordance with consumption of content via their constituent channels.

Charting the monthly views each MCN was registering at the point of acquisition against the company valuation reveals that there is a strong correlation between video consumption and value of the MCN at the point of investment/acquisition.