Research Article
The Sandbox Network’s Strategies for MCN(Multi-Channel Network) Market Entry
1 Seoul National University
Published: January 2019 · Vol. 23, No. 3 · pp. 99-123
DOI: https://doi.org/10.17287/kbr.2019.23.3.99
Full Text
Abstract
The increase of the market size of MCN industry—in which companies usually generate their revenues through creator management—has been brought by the rapid growth of online video platform market. Among the companies who compete in the MCN market, Sandbox Network is noteworthy due to its fast growth. Established by a well-known creator who wanted to provide fellow creators with better circumstances for content creation, Sandbox Network has secured the cumulative investment of KRW 40 billion just in the first three years of its founding; its annual sales amounted to KRW 28.2 billion in 2018. These outcomes are surprising given that it entered the MCN market as a late mover. The present study aims to analyze the Sandbox Network’s strategies for the MCN market entry. To this end, along with overviewing the MCN industry, Sandbox Network’s establishment process, business model, brand strategy, and future agendas are carefully analyzed. The results reveal that Sandbox Network’s rapid growth in its very early stage could be attributed to the positive influence of ‘Dotty’, the founder. Moreover, Sandbox Network could maximize its revenue by utilizing the extended business models—optimized for the MCN industry. Finally, Sandbox Network could be differentiated from its competitors by executing not only the internal branding for improving employees’ creativity but also the external branding for enhancing the relationship with its main customers (i.e., Generation Z). Taking these points together, implications for practitioners and prospective founders are suggested.
