nScreenMedia OTT multiscreen media analysis

Why Mondo chose VRV, not YouTube, to launch SVOD

Ellation's VRV

The YouTube “demonetization” flap has drawn the ire of many creators. Is it any wonder that top producers like Mondo Media are moving their primary monetization efforts to VRV?

The YouTube demonetization flap

In 2012, YouTube created an algorithm to automatically remove videos deemed advertiser unfriendly from the pool of videos against which ads were placed. Recently, this algorithm was updated to target videos related to terrorism. At the same time, YouTube began telling creators when their video had been dropped from the advertiser pool (or “demonetized”, as the company calls it.)

Philip Defranco youtube star

Philip DeFranco is confused about demonetization

Many creators were confused why one video was demonetized while another was not. For example, Philip DeFranco, who’s YouTube channel has 4.8M subscribers, discovered a video he had published -that received 3.2M views – had been demonetized. He went through a very confusing appeals process:

“After initially being marked as not advertiser friendly, and then someone reviewing it and saying no it definitely isn’t monetizable, they’ve now remonetized it. I don’t understand.”

Although the video was re-instated, it left Mr. DeFranco in the dark as to precisely how much money he should have earned from his hit video.

YouTube is renowned among its creators for making it difficult to derive fair value for videos on the site. It is additional problems like demonitization that are driving creators to look elsewhere for more serious monetization platforms, like VRV.

Mondo takes a different monetization path

John Evershed CEO Mondo Media

John Evershed CEO MONDO Media

Take MONDO Media for example. The company is acutely aware of the challenges in making money on YouTube. According MONDO’s CEO John Evershed, the company has generated over 3 billion video views on YouTube. Hit shows such as the surreal cartoon Happy Tree Friends, which has attracted 1 billion views, are certified hits but don’t drive a great deal of revenue for the company.

Little wonder that when Mr. Evershed decided he wanted launch an SVOD channel he did not extend his relationship with YouTube. Instead he is looking to the new aggregation platform VRV to help him translate his huge YouTube audience into a bigger revenue generator for company. As he said:

“YouTube is like a front door to surface our stuff. VRV is a great platform to monetize it.”

VRV, a platform for growth

How can VRV help Mondo improve its revenue picture? When it launches later this year, VRV will bring together a host of related video services targeting the cartoon obsessed youth in the US and around the world. The company has already announced banner services like Crunchyroll and Rooster Teeth will be available through the platform. Last week it announced eight new partners will be joining the service: Funimation, Tested, RiffTrax, CollegeHumor, Machinima, GINX eSports TV, Shudder and MONDO. MONDO’s SVOD channel, like Frederator’s Cartoon Hangover, will be available exclusively through VRV.

Further, all of the sites will be providing quality content free-ad-supported for VRV users. This wealth of genre content should make VRV a must-have service for the fandom community. Mr. Evershed is bullish on the free content’s ability to translate casual viewers into paying subscribers to the MONDO VRV channel:

“We are going to put things in VRV that you just won’t find anywhere else…It gives us a chance to do higher production stuff, convert a large digital audience into subscribers.”

He also thinks VRV is the right environment to help MONDO grow. He is considering launching new channels embracing genre’s like horror, drama, and action.

One thing is clear with the VRV model, it rises and falls on the success of its partners like MONDO: growth for one is to the benefit of all.

Why it matters

The monetization challenges continue with YouTube for even the biggest creators.

Some are looking to new genre based aggregation sites like VRV to become the focus of their monetization efforts.

Expect to see more sights like VRV spring up targeting many of the larger defined niches underserved by the traditional media community.

Facebooktwittergoogle_plusmailFacebooktwittergoogle_plusmail

Leave a Reply

Your email address will not be published. Required fields are marked *