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.
The Amp is our highly-acclaimed free weekly
round up of key industry news, delivered to
your inbox.
Sign up and be informed.