Restructuring MCNs & Monetization Review
On October 30, 2013, in addition to announcing that the company would be entering into the fray of contract disputes between content creators and MCNs, YouTube also announced that it would be restructuring how its network partners managed their signed channels with regards to copyright infringements.1 Each channel under an MCN would fall into one of two categories: managed or affiliated.
According to reports in Adweek, when the restructuring went into effect in November 2013, MCNs assumed direct ownership over the content uploaded to managed channels, as if the MCN had produced the content itself, and as such is responsible for any ensuing copyright violations. In return for the MCNs assuming copyright liability, YouTube has promised to monetize the content more quickly, allowing both content creators and MCNs to gain ad revenue faster.2
Affiliated channels, on the other hand, will gain the benefits of being associated with MCNs (ie. access to an MCN’s sphere of “influencers” and “subscribers,” as well as dashboard analytics tools) but will assume their own copyright liability. As a result, the content uploaded to affiliated channels will be subject to heavy copyright reviews before being eligible for monetization, which may significantly delay a content creator’s ability to obtain ad revenue.3 Because of their more autonomous status, affiliated channels will also be able to use the new “reporting” link (or “breakup button,” as many YouTubers are calling it) in order to initiate a contract dispute; managed channels will not have this option.
As of mid-November, all MCNs had re-designated their channels as either managed or affiliated, and on December 6, 2013, YouTube began formally announcing to its MCN-affiliated content partners that it would be introducing copyright reviews for all videos uploaded for monetization “as a means of deterring copyright infringement on the site.”4
This top-down restructuring of MCNs and their channels represents one of the ways in which YouTube is currently endeavoring to crack down on copyright infringements since its victory over Viacom in April 2013. Although the courts again ruled in YouTube’s favor, one of the cardinal issues in Viacom’s argument for appeal was that YouTube had “intentionally blinded” itself to copyright violations on its site by not actively reviewing uploaded content and by disabling their previous provided “flagging” tool for identifying infringing material. Judge Louis Stanton dismissed the case on the grounds that Viacom could not prove that YouTube had specific knowledge of any infringements. Despite this, YouTube’s new monetization review and restructuring appear to be one way in which the site is seeking to limit its future liability, either by identifying copyright content or by passing the liability on to the managing MCN.
Citations
1. Shields, Mike. (2013, October 30). "How YouTube's New Arrangements With
MCNs Work: Networks can take more responsibility for copyright
violations." Adweek. Retrieved from http://www.adweek.com/videowatch/how-youtubes-new-arrangements-mcns-work-153492
2. Ibid.
3. Ibid.
4. Gutelle, Sam. (2013, December 6). “YouTube’s MCN Affiliate Channels Will Be Subject To Monetization Reviews.” Tubefilter. Retrieved from http://www.tubefilter.com/2013/12/06/youtube-affiliate-channels-monetization-copyright-review/
According to reports in Adweek, when the restructuring went into effect in November 2013, MCNs assumed direct ownership over the content uploaded to managed channels, as if the MCN had produced the content itself, and as such is responsible for any ensuing copyright violations. In return for the MCNs assuming copyright liability, YouTube has promised to monetize the content more quickly, allowing both content creators and MCNs to gain ad revenue faster.2
Affiliated channels, on the other hand, will gain the benefits of being associated with MCNs (ie. access to an MCN’s sphere of “influencers” and “subscribers,” as well as dashboard analytics tools) but will assume their own copyright liability. As a result, the content uploaded to affiliated channels will be subject to heavy copyright reviews before being eligible for monetization, which may significantly delay a content creator’s ability to obtain ad revenue.3 Because of their more autonomous status, affiliated channels will also be able to use the new “reporting” link (or “breakup button,” as many YouTubers are calling it) in order to initiate a contract dispute; managed channels will not have this option.
As of mid-November, all MCNs had re-designated their channels as either managed or affiliated, and on December 6, 2013, YouTube began formally announcing to its MCN-affiliated content partners that it would be introducing copyright reviews for all videos uploaded for monetization “as a means of deterring copyright infringement on the site.”4
This top-down restructuring of MCNs and their channels represents one of the ways in which YouTube is currently endeavoring to crack down on copyright infringements since its victory over Viacom in April 2013. Although the courts again ruled in YouTube’s favor, one of the cardinal issues in Viacom’s argument for appeal was that YouTube had “intentionally blinded” itself to copyright violations on its site by not actively reviewing uploaded content and by disabling their previous provided “flagging” tool for identifying infringing material. Judge Louis Stanton dismissed the case on the grounds that Viacom could not prove that YouTube had specific knowledge of any infringements. Despite this, YouTube’s new monetization review and restructuring appear to be one way in which the site is seeking to limit its future liability, either by identifying copyright content or by passing the liability on to the managing MCN.
Citations
1. Shields, Mike. (2013, October 30). "How YouTube's New Arrangements With
MCNs Work: Networks can take more responsibility for copyright
violations." Adweek. Retrieved from http://www.adweek.com/videowatch/how-youtubes-new-arrangements-mcns-work-153492
2. Ibid.
3. Ibid.
4. Gutelle, Sam. (2013, December 6). “YouTube’s MCN Affiliate Channels Will Be Subject To Monetization Reviews.” Tubefilter. Retrieved from http://www.tubefilter.com/2013/12/06/youtube-affiliate-channels-monetization-copyright-review/
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