ONErpm Expands YouTube Multi-Channel Music Network, Seeks New Members [EXCLUSIVE]
Digital music distributor ONErpm continues its move into broadcasting with the expansion of its YouTube Multi-Channel Network (MCN). ONErpm offers select network member channels improved ad rates, Content ID for reposted music videos in addition to music used in other's videos as well as additional promo opportunities. I spoke with CEO Emmanuel Zunz on Thursday about this week's announcement.
Learning to Think Like a Broadcaster Rather Than a Distributor
The development of a YouTube MCN represents a new direction for ONErpm which has previously focused on digital music distribution and sales. Co-founder and CEO Emmanual Zunz said that it's an exciting shift in that now he has to think like a broadcaster rather than a distributor.
ONErpm has already developed experience running an MCN in Brazil where they're now the top music MCN and no. 3 overall on YouTube. Zunz sees a huge international opportunity for ONErpm beginning with their current expansion in the States.
According to this week's announcement, the ONErpm YouTube MCN offers members additional benefits beyond the Standard Partner Program via their Premium Partnership with YouTube:
"These include a premium percentage share of advertising revenue; Content ID for videos, which is more lucrative than audio alone; cross channel promotion to expand views; and a greater selection of ads with higher CPMs, or cost per thousand views, that run against the videos, maximizing the opportunity for revenue. In return, ONErpm keeps 30% of royalties it collects and directly pays the artist 70%."
Zunz revealed that higher CPMs are achieved via premium ads offered by Google on YouTube. Though some MCN's do have their own ad teams, they don't always bring in higher rates than Google can achieve. By using Google, ONErpm is freed up to focus on supporting and promoting MCN members.
ONErpm Seeks Both Up and Coming and Established Acts
Zunz explained that though they are planning to add hundreds of sites in the days ahead, they will be focusing on artists that have a following or have gotten off to a good start and show a commitment to further growth.
ONErpm developed the initial network with well-established acts but Zunz feels that if you've got at least 1000 subscribers and the ability to grow then you're a likely candidate.
For larger acts with 5000 subscribers or 500,000 accumulated views, ONErpm will also waive the $40 upfront fee for digital distribution. However signing up for the YouTube program is free for all applicants.
Zunz also explained that the MCN deal is for two years. If during the first six months musicians feel it's not working out, then they can withdraw. After that the agreement continues for the rest of the two years.
As Zunz pointed out, it's difficult for single channels to get into YouTube's Premium Partnership program. In addition, working with ONErpm offers the related benefits of a relationship with an established digital distributor.
You can get additional information regarding revenue splits and related details at ONErpm where you can also apply.
As more music-focused MCN's launch it will be interesting to see which differentiating factors allow services to take the lead.
Hypebot Senior Contributor Clyde Smith (@fluxresearch/@crowdfundingm) also blogs at Flux Research and Crowdfunding For Musicians. To suggest topics for Hypebot, contact: clyde(at)fluxresearch(dot)com.