Net Red Hard To Cash In The Hatchery Network Red MCN Has More Than 20000 Institutions

In recent years, the word "net red" has been red, and the net red economy has broken out. The MCN institutions that have hatched the operation network have sprung up like mushrooms.

According to data from the 2020 white paper on MCN industry development in China, there are more than 20000 MCN institutions.

In 2015, there were only about one hundred MCN institutions in China.

The MCN organization is the core role in the net red industry chain, which mainly hatches and operates content producers. The rise of net red economy also depends on institutional and capital support.

According to the white paper on value of MCN institutions in 2019, most of TOP's institutions have strong capital support. Since 2016, there have been successive financing cases. Beijing two Ka media got the 40 million A round of financing of Sequoia Capital in 2018. Qingdao KGM Jiahe got the angel capital financing of genetic capital in 2018. The Beijing new film industry got the C financing of Tianxing capital and Sequoia Capital.

At present, the most famous net red IP on the Internet is mostly from the same organization. Take the shaking platform as an example, there are many subdivision areas in the platform. There are people who play net red IP mainly in drama, knowledge, skills, assessment, pets and so on. The most popular type is the IP based drama.

In 2019, several top ranked companies in the MCN rankings, such as worry free media, ancient Jiahe, two Ka media and so on, have dozens of famous net red. The surplus of worry free media and Mao Mao Jie, the northeast of the two Ka mass media (sauce) are tens of millions of fans in Losangeles.

There are four ways to reallocate MCN: live or short video, goods, advertising expenses, entertainments and live gifts.

The higher the volume of fans, the higher the advertising quotes, and the high advertising quotes make other institutions jealous. According to public information, head office accounts for 70% of the market share.

MCN development needs capital support, but the investment community is very controversial about its investment value. It has been said that 99% of MCN institutions are not suitable for investment. What are the requirements of 1% of the institutions?

The founder of Rong Zheng capital has said that MCN institutions are hard to invest because their success is hard to duplicate. Just as film and television companies can't have only one star, replicability is very necessary.

Early entry and strong capital are the common characteristics of the head MCN institutions, and they are also the main reasons why they can not be duplicated. Although the MCN organization has not been well known in recent years, many head offices have been in the office for five or six years. The early training network red IP mainly relies on "burn money". Before the artist has realized liquidity, he can only rely on a large number of capital operations. Funds are mainly used for video production and team formation. The cost of producing a short video of more than a dozen seconds varies from several hundred to several thousand. In order to attract more traffic to buy "DOU+" and other products, it is also an expense.

Secondly, the MCN institutions dominated by net red IP tend to face greater risks, and the risk index is directly proportional to the popularity of net red. After the fame of net red, there are not only a few economic disputes with MCN institutions. It is a fatal blow for small organizations to release large numbers of resources before becoming famous. Therefore, the success of MCN based on net red IP is difficult to replicate.

The closer to the product, the quicker the cash flow.

For the current MCN business model, the most important thing is the income of live or short video.

Lian Jie, the founder of Wuhan's mutual entertainment, revealed to him that a good business model should be direct broadcast or short video with goods and advertising costs to more than 60%. In 2013, WeChat began to dwell on the WeChat public number and began to focus on the short video area.

At the beginning of 2019, the days of entertainment in the early days of the world missed the era of live broadcaster. Lian Jie believes that the early realization of the anchors' anchors is not in line with commercialization, and that the MCN institutions that rely on content can truly take the long run. At present, the main areas of mutual entertainment are light knowledge, child care and health.

In fact, these three areas are not the hottest areas in the net red economy at present. But Lian Jie has said to chase cloud network that for non head MCN institutions, liquidation is the most important. After all, the popular voice red IP occupies most of the traffic, and the success of the MCN mechanism on the head is hard to duplicate. If you want to get a slice of the net red economy, you can only cash it first.

In 2019, we began to cultivate accounts in three fields of workplace, child care and health. All accounts in different fields chose practitioners in related industries instead of net red. Lian Jie said that taking a career as a starting point to make short videos is faster and faster than products. Take child care as an example, each account will share knowledge about child rearing. After accumulating the amount of fans, it will be able to broadcast live products or receive advertising products in related fields. This mode is closer to the product than the net red IP. The risk of changing the account does not affect the carrying capacity of the account.

For the net red economy, every track that MCN agencies are involved in does not focus on one account. Well known net red IP is often MCN institutions in the more than 100 nets red after experiencing hardships, stand out, the rest of the liquidity or even the survival space is very small. At the same time, there are dozens of accounts in each track, and there are also many failed accounts. Since it is not based on the cultivation of entertainers, the account renewal rate is very fast, with a success rate of around 50%. At present, the sales volume of each item has reached more than 20 million in 2019.

When the account is close to the product, fans tend to believe in the carrying capacity of the account. Similarly, once the account is fired, it is replicable. Through the feedback from each video, we can analyze the reason in depth and copy it to another account.

For the revenue of live goods, Lian Po believes that as long as the business team is mature and the stability of the upstream supply chain will bring considerable revenue. The price per passenger is below 100 and gross margin is higher than 50%.

"In the final analysis, this is still a money making industry." Before every live broadcast, the teams that spend their time together will count ROI. This investment is mainly used for the drainage of products such as DOU+. "The only threshold for MCN institutions is capital strength." Lian Jie said.

The industry still has a good momentum of development.

From the anchors of value to the live broadcast of goods, the net red economy seems to be reborn again and again in the declining voice. Hangzhou is a city that has been shaped by live TV providers.

There is a saying in the live broadcast industry: "there is at least one large supply chain in every office building in Kowloon castle. "The meaning of this sentence is in Kowloon and Xiasha, and now it is the anchor, MCN institution and the supply chain. In the era when everything can be broadcast, the existence of MCN institutions is to integrate industries and bring the direct broadcast industry to the road of healthy development, and become more mature and commercialized.

MCN organizations can tap and cultivate their own top streaming anchor, and cooperate with the major platforms to achieve offline activities. Online drainage can be performed to the offline commercial performances.

Zhang Yutong CEO explained to the white paper that there are six major trends in the development of MCN in the future.

First, the scramble for high-quality resources will change to the multidimensional situation of MCN, platform and star brokerage company.

Two, MCN institutions and platforms will gradually move towards specialization and programming through the following aspects: Division, management system and industry autonomy.

Three, MCN has changed from the pursuit of traffic dividends to the pursuit of dividend, bonus of value and bonus of scenes.

Four, short video will become the largest content form of traffic and become the largest commodity display port.

Five, competition in the hottest categories such as food, fashion, beauty and so on will become more intense.

Six, with the advent of 5G, MCN will be transferred to the new platform battlefield.

But in any case, with the coming of the 5G era, the MCN organization will jointly promote the outbreak of the electricity supplier and create a new situation of the live broadcast of the electricity supplier.