Kin Community -- My Interview with CEO Michael Wayne of the “Quiet" MCN for Women

Kin Community -- a leading women’s lifestyle MCN (in fact, they bill themselves as being "the #1 women’s community"), but have you heard of them?

Chances are, “no."  But, doesn’t mean you shouldn’t know them.  It may just mean that this MCN's story is a bit more difficult to tell.  

I recently sat down with founder & CEO Michael Wayne at the company’s beautiful offices in Santa Monica, California -- very near the offices of fellow MCN Tastemade (which I recently profiled).  And, I learned a lot in our time together ... and was impressed by his thoughtful, disciplined and, yes, humble approach to his overall business.

First, here are some facts that may make Kin Community’s pitch more challenging and less easily “hype-able":

(1) Kin is a rarer kind of MCN “animal” -- unlike a purely style/beauty-focused MCN like StyleHaul (which has long-rumored to be in M&A “play” as we speak), Kin Community covers multiple vertical lifestyles for women (food, health & fitness, beauty & style, parenting, home, and entertainment).  This means its overall story is, by definition, less focused and easily “pitch-able”;

(2) it is significantly smaller than mega-MCNs like Maker Studios (acquired by Disney for up to $1 billion) and Fullscreen (acquired by Otter Media for a deal rumored to value the company for up to $300 million).  In fact its scale is about 1/10th that and more Big Frame-like (acquired by AwesomenessTV for $15 million).  Nonetheless, Kin is certainly larger than other leading MCNs who have a bigger spotlight.  Kin now reaches 25 million subscribers (about half of whom subscribe to one channel -- “The Ellen Show”, as in Degeneres), with over 207 million monthly views, and over 4.3 billion lifetime video views.  In other words, its reach is real; 

(3) the company launched in 2007, practically a different generation and vintage from most leading press-proven MCNs.  This genealogy is very important to understand, because let’s not forget the impact (both financial and psychological) of the Great Crash of 2008 on all entrepreneurs who pre-dated that crash.  Unlike post-Crash MCN babies like StyleHaul, Kin had to weather the storm -- which meant that it needed to deploy its cash conservatively, much more conservatively than the speed of deployment of most MCNs today.  In the words of Michael Wayne, “we are recession children” -- and, that fact clearly has made a lasting impression on him and how he runs his company.  As a result, Kin’s steady growth over time may be less “exciting” than younger MCNs who have jumped higher and faster (even if some of those may be doing so with less compelling financial results).  Let’s face it -- the press (and investors) always prefer the young upstart with $0 revenues that can scale to infinity and beyond;

(4) the company’s CEO, Michael Wayne, doesn’t seemingly actively court the press or seek the limelight.  But, he is a proven entrepreneur who really knows his business -- he just may approach it in a more deliberate fashion for the reasons discussed above;

(5) the company caters to a slightly older female demographic -- certainly older than StyleHaul’s.  62% of Kin's viewers are between the ages of 18-52 (by the way, 74% of all viewers are women).  As such, it is not as much of a “millennial” play as most of the others.  After all, youth sells;

(6) Kin, at least for now and unlike most other MCNs, is content to live on top of YouTube’s platform and not chase other distribution platforms.  Kin, unlike others, is also generally content with its ad and branded-content and sponsored business model.  While Kin ultimately may syndicate and “upstream” more of its original content, unlike StyleHaul, don’t expect direct commerce opportunities here anytime soon; and

(7) unlike virtually all other major MCNs that feature hundreds and usually thousands of video creators, this MCN features only 90 or so (the most of important of which is “The Ellen Show”).  Fewer creators, personalities and channels mean fewer personalities to hype the overall story itself.

But, less hype doesn’t translate immediately into being any less impressive.  And, here’s why:

(1) the company has actually attained stand-alone and ongoing profitability (on a long-term basis);

(2) it also just recently closed a significant Series C round of $12 million in financing to further diversify its channel line-up and significantly accelerate its scale, particularly internationally -- not by the blue chip kind of “usual suspect” MCN investors that we have come to expect, but instead by stealth international strategics (led by Canadian media company Corus Entertainment) who can further accelerate the company’s “quiet" global growth; and

(3) the company’s relationships with its brand partners run deep and frequently extend for years.  Take Target.  Target is the reason Michael Wayne and his team targeted the more mature women’s market in 2007 in the first place.  And, Target remains its biggest sponsor today.

Kin Community.  Certainly not the hare.  But, not necessarily the tortoise either.  

Perhaps just a company in the MCN space that has already demonstrated a real, long-term stand-alone business model.

Kind of quaint.  Definitely a bit quiet.  But now ready to amplify its voice.

LA - The Epicenter of Digital Media/Tech Innovation

Virtually every week -- everywhere you look -- investors are pouring boatloads of money into content-focused digital media and tech companies.  The latest examples?  Otter Media’s acquisition of leading multi-channel network (MCN) Fullscreen for a deal reported to value the company up to $300 million -- and Corus Entertainment’s lead position in a new $12 million investment in women’s-focused MCN Kin Community.  And it’s not just the usual suspects like studios playing this game.  Major brands like Marriott and previously pure leading NorCal tech-focused VCs like Andreessen Horowitz have entered the fray.  For content-first digital media companies, 2014 is as easy (and rightfully so!) as 1-2-3: (1) Disney’s earlier acquisition of MCN Maker Studios for up to nearly $1 billion; (2) Facebook’s $2 billion acquisition of virtual reality Oculus Rift; and (3) Apple’s $3 billion acquisition of Beats and Beats Music.  And, let’s not forget all of the other hundreds of millions of dollars of venture capital and strategic investment into the MCN space alone (here is my overall “cheat sheet” that summarizes all of these deals).

I was speaking with my wife, Luisa, about all of this as I drove from one meeting with a digital pioneer in this brave new media world (Kin Community’s founder/CEO Michael Wayne) to another (Pluto.tv’s CEO Tom Ryan).  I expressed my excitement about what I absolutely believe is a seminal and transformational moment-in-time for the media business.  I marveled at the sheer entrepreneurial energy and innovation that Los Angeles and SoCal in general is exuding right now.  For me, someone who has been immersed in the media/tech space for 25 years, these are uniquely exciting times.

You see, I like to get down in the streets -- down in the trenches with those entrepreneurs and where that innovation is happening.  I like to visit them in their company offices.  To “feel” how they feel.  To see their teams in action.  And, after scores of meetings, I am absolutely convinced that we will look back at this year -- 2014 -- as being the point where the long-anticipated promise of the “convergence” of media and tech became a mainstream reality.  Where NorCal investment finally met SoCal content-driven opportunities.  When content finally was understood to be king again -- precisely because of new technology that enables the creation of new experiences, new ways to distribute those experiences, and new ways to engage with and in those experiences.

This is a new golden age of content.  Plain and simple.  A sentiment I voiced earlier this year when interviewed by none other than tech-focused pub TechCrunch.  It is not content divorced from tech.  Not at all.  It is content fueled by it.  It is creativity on a mass scale that involves both the left brain and right brain.

And its epicenter is LA.

As I continued speaking with my wife on my 5 mile “should have been 10 minute but instead was 30 minute" drive, we ruminated about our own kids living in these times.  About how much fun they would have as young people raised in this digital world -- and able to participate in it as more than consumers.  As entrepreneurs themselves, if they so wish.  For now, they are a bit young (15 and 12, respectively).  But, for other media and tech-hungry millennials, now is a time to harness your passions and fully immerse yourselves in this fully immersive Oculus world.  Hundreds (thousands?) of entrepreneurial opportunities and jobs are being birthed amidst all of this investment.  They are there for you here and now.  Fullscreen, Maker Studios, StyleHaul, DanceOn, Mitu Networks, Kin Community, Tastemade, Collective Digital Studio, Vice Media, Jukin’ Media, Woven Digital, Pluto.tv, ZEFR, NeonGrid, Otter Media, The Chernin Group, AwesomenessTV, Everdream, Eversport, Fanbread, Ninja Metrics, VideoInk, Media Hound, Atom Factory -- and, yes, Manatt Digital Media.  These are just some of the places where innovation is happening.  In beautiful open spaced offices -- where the possibilities themselves are wide open.

Yes, Silicon Valley remains a hotbed of innovation and opportunity.  But, Silicon Beach is now where entrepreneurial energy and innovation have reached a fever-pitch.

Go West young talented and passionate digital media/tech entrepreneur!  Southwest, that is ....