YouTube economy and "New Hollywood" outlook worrying

Tencent Technology Tan S August 31 compiled as a new revolutionary force in the entertainment industry, what will YouTube be like tomorrow? The famous American Science and technology blog BusinessInsider Thursday published a detailed analysis of this, and made a more pessimistic conclusion. When you ask the average netizen how YouTube will be in the next few years, they will give you an optimistic answer. Who says it's not? On the surface, the YouTube ecosystem-including its growing industry talent managers, brokers, production companies, advertising companies and marketers, tool developers-has become a digital new Hollywood, and it is only getting better. But when you ask the industry and senior executives about the same questions, you get a more realistic forecast, perhaps with a bit of pessimism. Digital leaders have voiced concerns about the future at the 2013 unofficial YouTube video industry conference in Anaheim, California (VidCon). YouTube has great potential to revolutionize the entertainment industry, but in order to do so, the video industry must first make a profit overall. This is possible, as long as YouTube has less service charges, or the market appears to have YouTube rivals, or large brands have invested heavily in the video industry. If none of this happens soon, many new Hollywood members will be forced out. Maybe it's not a bad thing. MCNs's Dilemma Multi-channel network (multi-channel NX, referred to as MCNs) is a strange hybrid that is both a video studio and an advertising network, although it relies on YouTube, but its personnel management is independent. They have managed to raise large sums of money from investors such as Google (Weibo) and Time Warner, but many studios are still struggling. Technically, MCNs has become a new Hollywood member, but they still rely on traditional business models, doing many old Hollywood-style things, often creating contract disputes with employees and requiring young entrants to sign a four-year contract. Recently, a MCNs company was sued by the former CEO and a former senior officer. In addition to scandals, the current MCNS business model relies on advertising revenue, which is "unsustainable", especially with hundreds of or thousands of channels of MCNs. Peter Bray, Director of the Saatchi & Saatchi, a global advertising agency, predicts that "mcns that don't seem to make money" will soon be "swallowed up" by peers and traditional media companies. In a way, this has happened. This March, Discovery NX Company acquired Revision3. And just last week, Maker UBM announced it would buy a professional video platform Blip. Industry insiders believe that Discovery NX acquisition REvision3 's deal will make many other MCNs on YouTube at a crossroads of survival. Unfair partitioning system The relationship between YouTube and Google is unfair and unsustainable, a fault of Google for not doing evil. By agreement, Google could deduct 45% of its revenue from YouTube's ad sales. Critics say a 45% percentage point is too high for actual work done by Google. According to the partnership program, YouTube earns only 3-5 dollars on average for every thousand-person cost (CPM). If the creator of a video is a member of the MCNs, YouTube also deals with the MCNs average of about 30%. YouTube's pie itself is small, then cut into small pieces, the result is not satisfied with each side. The distribution of revenue on YouTube is unfair compared to music products, Bray says. HLG UBM founder Yuri Baranovsky (Yuri Baranovsky) wrote in ane-mail: "The partnership program needs some big makeover" because "the industry now feels like a terrible sweatshop, its products are absolutely large, but both quality and price are very low." "Yes, some video creators make millions of, but these are the exceptions," he said. In most cases, many people are forced to churn out, and many of them still earn meagre income. This is unsustainable, and it is impossible to create good works of art. Some people think YouTube can reduce its percentage of commission because it has no strong competitors. On the last day of the VidCon conference, Caracanis, the host, persuaded YouTube's creators to unite to demand a fairer treatment for YouTube, which is to reduce the share of advertising revenue from YouTube. Caracanis even persuaded them to quit YouTube and take refuge in their rivals until the demand was met. Earlier, YouTube's first millionaire creator, Revillian Johnson, had quit YouTube and joined the video site blip. Maker Studio's interest in blip also shows MCNs's desire to quit YouTube. Sadly, YouTube is clearly still indifferent to the plight of MCNs. The next possible bright spot for the YouTube economy is the inclusion of big brand companies that will inject large amounts of cash into the industry through advertising or acquisitions. Perhaps the addition of big companies will free YouTube video creators to some extent. At the VidCon meeting, YouTuber's fans and fan groups left a deep impression on Bree. He thinks YouTube's eco-circle has an "incredible lead" and conjures up the idea that the Internet is just beginning to show good momentum for 1995 years.Even though YouTube currently has an unfair income distribution problem, Bree thinks it's best for the creators to stay in the system. YouTube management tools and large data although the YouTube economy is in a bad situation, there are no signs of big losses in the data analysis companies and YouTube tools companies that rely on YouTube. Dein Gauden (Dane Golden), an independent marketing analyst for Hey.com, said YouTube's future would be "built on big data and audience participation tools" and that "any company involved in the video field should track several different levels of analysis." "Gordon cites video content management tools Zefr and two Msn--maker UBM, fullscreen--as a good example of using YouTube's big data correctly. Jim Louderback, CEO of Revision3, also mentioned Fullscreen, and believes the company has done a very smart job of providing services to large companies and bringing them brand effects. But the success of Fullscreen's use of tools to provide services to large companies is not very sustainable. "In the early days of Facebook and Twitter, many social media advisers were asked to help, but now they do it themselves, and the same thing happens to YouTube." "Lauderbach predicts," Fullscreen is doing a great job of filling in the blanks. But if brand companies no longer need other agencies to help them with YouTube marketing, what will fullscreen do? "Lauderbach said. The future of the new Hollywood will either reduce its advertising revenues or the big brand companies to get into it, to stabilize the current YouTube economy. But both are uncertain. Given that Google will not take MCNs's plight as its problem, it seems unlikely that it would reduce its revenue commission, and that it may take years for big companies to enter. Before that, the industry reshuffle will continue. At worst, MCNs will be out. This may be the best choice for YouTube video creators, because it will give them the greatest freedom to realize their dream of independence. But that is unlikely, given the rising trend in industry consolidation and the desire of companies to make money at the forefront of every industry. As Mr Bray of Saatchi & Saatchi points out, the real power may lie in the strength and scale of YouTube fans and individual stars. For the new Hollywood of the YouTube ecosystem, perhaps the real profit potential lies in the decline of MCNs.