Here are 5 of the most significant industry changes in the past 12 months (that you can use in your cocktail conversations). Consider these your "table topics" that show you are on top of your game.
(1) The Rise of the "Off YouTube" Movement. Until this year, YouTube dominated VidCon in virtually every respect. I even referred to our digital-first world as the "YouTube economy." But, we have seen massive growth in new major platforms for video distribution in the past year -- most significantly the threat of Facebook, the intrigue of Snapchat, and the chutzhpah of Vessel. And, these are just some. The point is that creators want to be everywhere. Yes, on YouTube. But, not exclusively.
(2) MCNs Are Now MPNs. This flows from point (1). The term "multi-channel network" connotes essentially one channel of distribution (YouTube). Most "formerly known as MCNs" now consider themselves MPNs (as in, "multi-platform network") -- YouTube, Facebook, Snapchat, Vessel, Apple TV, etc. Social sharing is a critical element of distribution.
(3) Aggregation Is Not Enough. Last year, it (i.e., MCNs/MPNs) were all about scale -- and Maker Studios (Disney) and Fullscreen (Otter Media) were rewarded for it via mega-M&A. That world is no more. In the expected second wave of MCN/MPN M&A -- which recently kicked off with ProSieben/Collective Digital Studio (CDS) deal -- a multiple meaningful revenue streams story matters. Yes, ad sales, branded content, sponsorships. But, also the "upstreaming of content" to other platforms via lucrative licensing deals -- and ultimately commerce and more.
(4) Original Programming/IP & Key Talent Are Critical. This flows directly from point (3) above. Not only is original programming (exclusive content) an important form of competitor differentiation, it is a critical element of monetization. A compelling library of exclusive, original content/IP (e.g., characters, themes -- in addition to the videos themselves) can be licensed to multiple distribution platforms (even TV, movies based on that IP) for increasingly big cash. As an example, CDS's movie Fred has generated millions upon millions of dollars over time. And, as a corollary to this original programming/exclusive content point, it is critical for digital-first media companies to hold onto their "star" talent -- something that is increasingly difficult to do given increasingly vicious competition for that top differentiating talent.
(5) Pay TV Bundles Crumbled & Stand-Alone OTTs Rocketed. One year ago, Pay TV bundles still were largely intact -- and, while chatter existed that a "new world order" of unbundling was coming, most still considered that time to be far off. That all changed late last year with HBO's "HBO Now" shot across the bow. HBO opened the floodgates, and Showtime, Nickelodean, CBS, and myriad others flowed (at an accelerating pace). We seem to see new announcements almost weekly). No one knows what this ultimately means for media industry monetization on a grand scale, but some believe even ESPN -- the seemingly invincible network that perhaps benefits most in a bundled world-- is in deep transformative trouble.
Now go grab your bloody mary's and start the conversation ... and sound smart while you're doing it.