VideoUp expat hires set tone for local business

VideoUp, a Chinese multi-channel network or MCN, is looking to introduce more foreign internet celebrities into the Chinese market to stoke future growth.

The move comes as an increasing number of Chinese companies seek to ride the boom in businesses driven by internet celebrities or wanghong.

Some firms have started to offer third-party services, including audience development, content programming and monetization of wanghong's popularity, under the MCN model.

The MCN model refers to an agency aggregating and grooming key opinion leaders or KOLs and connecting them with brands. In markets like the United States, this business model is already mature. There, MCNs act as third-party providers and are affiliated to multiple YouTube channels.

While most MCNs in China focus on exploiting domestic internet celebrities, VideoUp has signed up 9-year-old Minnesota boy Gavin Thomas, known as the fake smile kid.

"As Gavin became popular and proved the business model, we decided to focus on foreign internet celebrities in China and aim to maximize our business through their operations in the country," said Wei Peiran, co-founder of VideoUp.

According to market consultancy iResearch, more than 6,500 MCNs had sprung up by the end of 2019.Content produced by MCNs has made up for over 60 percent of the total traffic in major social media platforms.

With a compound growth rate of 70.63 percent over the past five years, the market size in terms of revenue will likely reach 11.6 billion yuan ($166 million) this year, the consultancy said.

"To explore and discover these potential internet celebrities, our first standard is that he or she must have at least 100,000 followers on major social media platforms, which can show his or her basic ability to attract audiences," said Wei.

"But what's more important is whether or not the content is fresh in China and unique or outstanding. It should be more interesting than a Chinese blog."

The firm has signed up more than 10 foreign internet celebrities, including the dance duo of Ranz and Niana from the Philippines.

The Chinese company also inked a strategic partnership with leading Hollywood talent and literary management company Settebello Entertainment late last year, to help Western celebrities and influencers build a presence in the Chinese market.

"China is the world's largest nation with an insatiable demand for Hollywood entertainers. VideoUp has opened up an unparalleled portal to the East, and I am beyond thrilled to help Hollywood's leading artists walk through it," said Byron Ashley, founder of Settebello Entertainment.

While localization is a key for foreign internet celebrities to survive and succeed in the Chinese market, translating original digital content into Chinese and producing content exclusively for the Chinese market would also help, Wei said.

"But to make the content more engaging, internet celebrities are encouraged to create original content specific to each market," he said.