Talent with a huge YouTube following isn’t the only red-hot asset in the world of streaming video.
The companies that corral the talent and package them for advertisers are also attracting attention.
The companies, called Multi Channel Networks, or MCNs, are getting a lot of calls from traditional media firms looking to invest.
Last month, Scripps Interactive Media put $25 million into Tastemade, and some wonder if the Madonna-backed DanceOn MCN could be the next to attract investor cash.
DanceOn was launched in 2010 to focus on global dancing content.
Disney’s purchase of Maker Studios at between $500 million and $950 million — depending on its performance — set high expectations for other MCNs.
Fullscreen, run by former YouTube executive George Strompolos, generates 3 billion monthly views. It was approached by Yahoo! with a $250 million offer, but wants a premium on Maker’s price, sources said.
Peter Csathy is one of a host of investors in the YouTube MCN space who believes many of the new MCNs are ripe for the plucking — including StyleHaul, which showcases videos about youngsters’ fashion purchases, and
NYC-based The Whistle, a sports video showcase with big-league backers including Peyton Manning and Derek Jeter.
The Whistle broke 400 million views in March after debuting Jan. 1.
“The real question is how do these companies become profitable,” said on MCN investor. “There is no question they have a huge user base and incredible content, but Google takes 50 percent of your revenue and you have to split the other 50 percent with the talent.”