I. Basic ecological interpretation of MCN
(1) MCN operation model and representative agency
MCN agency docking needs to launch advertisers, select target KOLs according to customer requirements, and standardize and professionally manage production content through industrialized production methods, including assisting KOLs in topic selection planning , Script creation, shooting and editing, user management, etc., and then distribute the content to Weibo, WeChat, Douyin, Kuaishou, Station B, Xiaohongshu and other traffic platforms.
(2) MCN market Scale and growth rate
MCN institutions have shown explosive growth since 2018. As of 2019, there are 6,500+ MCN institutions in China, and the market size has exceeded 10 billion. The CAGR of the MCN market in 2015-2020 is as high as 70.6%, and the MCN market is expected to be 11.57 billion by 2020.
(3) Live streaming will become the most promising branch of MCN in the future
E-commerce live streaming industry The chain consists of the commodity supply chain, content producers, commodity monetization end and consumers, among which platform parties and MCN institutions benefit the most.
As one of the most important forms of MCN, we believe that its high growth is sustainable. In 2018, the scale of Taobao’s live streaming exceeded 1,000 100 million, +400% year-on-year, Taobao expects that the scale of live delivery will reach 500 billion in 2021. The driving force for growth lies in:
Compared with other content output, live streaming has a strong monetization ability, and the atmosphere and efficient interaction in the live broadcast room can easily stimulate unplanned consumption.
Currently, e-commerce live broadcasts are still at a low penetration rate. The penetration rate of purchasing goods through live broadcasts is less than 10%, and there is huge room for growth in the future.
(4) Profit model and commission sharing
From the perspective of the position in the industry chain, MCN is in the middle reaches, the upstream connects with the content party, and the downstream extends To the platform parties such as social networking and e-commerce, the platform party distributes to the user end, and the profit point is content payment, advertising fees and traffic transmission. The current MCN monetization model includes advertising monetization, platform subsidies, content e-commerce,User payment and IP authorization, etc.
Take e-commerce live broadcast as an example. Assuming that the shopping platform that the live broadcast is finally connected to is Taobao, the brand will allocate 20% of the turnover as a commission, and the MCN organization and the anchor will share a ratio of 5:5. The final share ratio of each party is as follows (based on the transaction amount):
(5) High-quality MCN company’s Moat
At present, the Matthew effect of MCN institutions is apparent. In 2018, MCN companies with revenues of more than 50 million exceeded 30%, and the proportion of top companies with revenues of more than 100 million increased. In the future, there will be a pattern of strong and strong. The core competitiveness of high-quality MCN companies has two:
The core of content production is people, and the key to MCN companies lies in KOL. The incubation/operation/retention capabilities, traffic management and batch account management capabilities of the company; the leading MCN agency’s network celebrity training cycle is fast, the success rate is high, the cost is low and the recovery is fast;
The core of the commercial monetization link is the channel, and the key lies in the upstream supply chain management capabilities and product selection capabilities; the downstream content distribution, exposure, and fan-absorbing capabilities.
2. High-quality companies in the MCN industry
(1) MCN agencies/marketing companies:
< br />Tianxia Show: The new infrastructure benchmark in the social business era, backed by Sina, links to the entire chain of social resources such as the media, brand owners, and end users; the company has built a complete economic ecosystem of celebrities, and currently links 1 million celebrities, 500 top brands, 80,000 small and medium-sized businesses;
Saturday: Acquisition of Yaowang Network in 2018 and layout of Internet marketing business; fixed increase of 2.971 billion yuan to deepen MCN marketing layout. At present, Yaowang Network is the MCN organization of Douyin, Kuaishou, Taobao Live and other platforms. It has more than 50 Wang Hong adults and more than ten signed stars including Wang Zulan and Zhang Cecilia; the short video platform has about 150 million fans on the entire network; Saturday is the first On Saturday, the major shareholder invested 21.53% of Guangzhou Zhuoshi, and Guangzhou Zhushi held a 5.66% equity of Dongwei Nian Technology, the company behind Li Ziqi.
Mango Super Media: the pioneer of radio and television MCN, the company’s affiliated Mango Cultural and Creative actively invests in technology, and the company’s "Damang Plan" continues to deploy the MCN ecology, star e-commerce and social e-commerce business Arrows are all fired. Mango TV will open more than 70 mango self-made variety shows, more than 40 core content of film and television dramas, 3000+ super celebrities, based on the customer resources of the mango department's 5 billion advertising pool, and super-speed incubation of mango department KOLs.
Zhongguang Tianze: MCN leader in the radio and television department, ranked 6th in the "2020 China MCN Institutions Comprehensive Competitiveness Ranking"; currently it has reached cooperation with many institutions such as Kuaishou. Guangtianze MCN will gather all levels of radio and television media accounts and column numbers to form a "Thousand Number One Network", and sign a contract to enter the Kuaishou platform.
Gravity Media: In 2019, the company is actively deploying the short video field, cooperating with Douyin and Toutiao, and reaching strategic cooperation with Kuaishou; providing advertisers with traditional TV, long videos, and short videos , Brand + effect one-stop solution, and actively build an MCN operation team; fixed increase is approved.
Guangdong Media: Shanghai Deyue, a subsidiary of the company, holds 6.86% equity in Guizhou Meione Network Technology Co., Ltd. (the parent company of MCN Meiwan to Li Jiaqi).
Leon Technology: Acquired Freshman Internet and Wochi Technology in 18 years, Wochi deployed MCN business, and its brand is Qingcheng Player as a leading MCN organization
Yuanlong Yatu: Through its subsidiary "Qianma Network", it has in-depth layout of MCN, independently researched and developed a precise social expert resource database, integrated WeChat, Weibo, short video, e-commerce expert, celebrity, live broadcast, etc. Kind of KOL data, serving more than 200 brand customers and 4A advertising companies.
Huayang Lianzhong: Digital Marketing Transforms Brand Operation, Fully Enters New Marketing Models such as Live Broadcast and Short Video
(2) Beauty Electronics Business operation platform:
One.com: The company is deeply engaged in beauty e-commerce services, and is compatible with mainstream products such as Procter & Gamble/OLAY/ Herborist/Pecho Ling/Elizabeth ArdenBrand cooperation; 362 million acquisition of 51% of the equity of Zhejiang Shangbai, the leading agency operator, to expand the operating category. In 2019, Shangbai GMV broke 11.6 billion yuan, with experience in the operation of home appliances and home appliances. Its main customers include head brands such as Midea, Little Swan, Panasonic, and Lenovo.
There are 9 6-star service providers on Tmall in 2019H2: Xingchang Xinda, Baozun E-commerce, Beauty Beauty, Kaijie E-commerce, Qingmu Technology, Shanghai Baiqiu, Shangbai E-commerce, One Net One Chuang, Bicheng e-commerce.
(3) Content e-commerce shopping guide platform with high user stickiness
It is worth buying: It is planned to raise 1 billion yuan to enrich the e-commerce ecosystem, Layout MCN, adding live streaming delivery service (fee charged) and live rewarding service (service fee rate 50%)
(4) Companies that benefit from advertising
Blue cursor: the rapid growth of short video business, the release of "Blue Label Online", the combination of marketing services and the SaaS platform model, high growth in overseas business
Leo shares: One-stop integration of digital marketing service groups to promote the overall layout of short video, information flow and social e-commerce fields
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This article is prepared by Beijing Zhonghe Yingtai Financial Consultants Co., Ltd. Investment Consultant Guan Bo (practitioning) Number: A0150614050001) Edit and organize. The content is for teaching reference only and does not constitute investment advice. The stock market is risky and investment needs to be cautious.
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