Have been speaking a lot about MCNs lately -- first my guest article in Variety; then my thoughts on CNBC. I have primarily discussed rumors swirling around Maker Studios [UPDATED -- rumors true -- Disney buys Maker] and Warner Bros.’ recent $18 million investment in gamer-focused MCN Machinima.
Here are some other vertically-focused MCNs you should know -- in addition to Machinima (which most definitely is an acquisition target):
(1) DanceOn -- like the name says, it’s all about dance -- and this LA-based company is hot and growing fast -- very fast. It is also backed by A-list investors, including AMC Networks, Nigel Lythgoe (creator of “American Idol” and “So You Think You Can Dance”), Madonna, Guy Oseary -- and now Manatt Digital Media Ventures. I too have invested. Dance is hot -- and DanceOn owns the category. The “MTV of Dance”, if you will.
(2) StyleHaul -- this is the leading fashion and beauty MCN that counts over 4000 channels and is also based in LA -- and is also on fire; definitely one to watch. Lots of talk about this one, and the international opportunity is massive. I am a believer.
(3) INDMusic Network -- bills itself as “YouTube’s Largest Music Network”, giving indie musicians and those who support them the tools to more effectively monetize; I like the music focus on this one, which immediately differentiates it from others. And, look at the investors (including Machinima’s Allen DeBevoise) and management team. A-list.
(4) Crunchyroll -- all about anime -- what more do you need to say? You think that isn’t enough? Then you're missing it. This one is being watched by many major media companies.
Expect significant M&A from many (if not all) on this list if not by the end of this year, then most certainly by the end of 2015.
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