At the peak of the traffic dividend, China's MCN industry is accelerating its transformation, shifting from reliance on top influencers to improving content efficiency, while going overseas and utilizing AI technology to reshape its competitive logic and growth path.
Head Leopard Research Institute
In 2024, China's live-streaming e-commerce market is expected to exceed 5 trillion yuan. As a key link in content production and commercial monetization, the MCN industry is at a new crossroads. Over the past few years, the number of institutions has rapidly expanded from hundreds to over ten thousand, content formats have shifted from text and images to short videos and live broadcasts, and the incubation cycle for influencers (typically referring to content creators with a certain fan base and influence on platforms) has significantly shortened. However, rapid expansion has also brought obvious pressures, including rising traffic costs, increasing content homogenization, and intensified talent competition, leading some institutions to face issues with adjusting their profit models.
<h4>What is MCN?</h4>
MCN (Multi-Channel Network) is an operational model that integrates multiple content creators, primarily providing services such as content production, distribution, marketing, and monetization, and acts as a bridge between platforms and brands. In China, the development of MCN is closely related to short video and live streaming platforms, gradually forming different types such as e-commerce, general content, and marketing operations.
MCN can be simply understood as the &#34;management company&#34; for internet celebrities, but in addition to managing influencers, it is also responsible for content production, traffic operation, and commercial monetization.
In operation, MCNs are responsible for content planning and traffic distribution, as well as taking on the role of commercial monetization. For example, Wuyou Media has over 1,000 influencers under its umbrella, and its business covers live-streaming sales, brand collaborations, and content operations. In its monthly sales of 100 million to 250 million yuan, the &#34;Big Wolf Dog Zheng Jianpeng &amp; Yan Zhen couple&#34; contributed over 100 million yuan, while &#34;Duoyu and Sister Maomao&#34; contributed 75 million to 100 million yuan, demonstrating the key role of top content in commercial conversion.
However, the industry also shows a high degree of fragmentation. By 2022, the number of MCN institutions in China had exceeded 24,000, with nearly 140 million influencer accounts. The demand side is still expanding, with 87.8% of users frequently watching short videos or live broadcasts, but under the pressure of traffic costs, content costs, and talent costs, about 90% of MCN institutions are still facing losses, indicating that the industry is still searching for a more stable profit model.
<h4>Battle for Top Influencers</h4>
Industry competition has long been concentrated on top influencer resources. A top influencer can often contribute over 80% of e-commerce sales, but their high bargaining power and mobility also expose MCNs to instability risks. In recent years, the importance of mid-tier influencers has gradually increased. Since the second half of 2020, among the top 50 accounts gaining followers on Douyin, Kuaishou (1024.HK), and Taobao, about 50% are MCN-signed influencers, indicating that mid-tier influencers are becoming a stable source of growth.
At the same time, the role of MCNs is changing. From primarily focusing on influencer management and advertising placement, they are gradually extending to integrated marketing and long-term operations, providing brands with a more complete service chain. The focus of competition has shifted from &#34;who has more influencers&#34; to &#34;who can continuously produce effective content and achieve conversion.&#34;
From 2018 to 2023, the MCN market size increased from 25.2 billion yuan to 41.793 billion yuan, with a compound annual growth rate of 10.65%; it is expected to reach 161.729 billion yuan from 2024 to 2028, with a compound annual growth rate of 31.12%.
As competition in the domestic market intensifies, MCN institutions are beginning to accelerate their overseas expansion, with Southeast Asia becoming a major direction. Data shows that in the Indonesian market, TikTok's daily live-streaming sales GMV has reached 3 to 5 million USD, with a 408% increase in GMV during the Double 11 period in 2022 and a 169% increase in orders.
Chinese background MCNs have gained certain advantages locally, with several institutions entering sales rankings. Platform subsidies and traffic incentives are attracting more institutions to join, such as Jiao Ge Peng You (1450.HK) and Chi Jing MCN, among which Jiao Ge Peng You's overseas business has 70% from influencer marketing, 10% from distribution sales, and 20% from live-streaming operations. However, going overseas is not simply a matter of replicating the domestic model; it still requires establishing local supply chains and influencer resources, as well as adapting to different market consumption habits.
<h4>New Logic of Content Production</h4>
Technology is changing the underlying operational methods of MCNs. The application of AI and related tools has lowered the threshold for content production and significantly improved efficiency. For example, an evaluation report for a 1.2 million-word novel can be completed in 15 to 30 minutes, whereas it would take a week manually, greatly enhancing the efficiency of content screening and planning.
At the same time, virtual humans and digital content are developing rapidly. It is expected that by 2030, China's virtual digital human market size will reach 270 billion yuan, with forms such as virtual idols, e-commerce guides, and content anchors gradually maturing, providing new content and monetization methods for MCNs.
These changes are rewriting industry logic. With the improvement of content production efficiency and the popularization of tools, MCNs are gradually reducing their dependence on individual top influencers, and content production is beginning to shift towards standardization and scalability. The focus of competition is also shifting from &#34;traffic acquisition&#34; to &#34;content production capability and conversion efficiency.&#34;
As traditional e-commerce accelerates its transformation into content e-commerce, brand owners' demand for influencer marketing is no longer limited to one-time sales but extends to brand building and long-term operations. Leading MCN institutions are beginning to layout overseas markets, delve into vertical fields, and introduce technology to enhance content production efficiency, gradually shifting from single influencer management to integrated marketing services.
The MCN business, which used to compete on who could capture traffic faster, is now starting to compete on who can turn content into a stable capability. Top influencers are still important, but they are no longer the only answer. As platform dividends stabilize and content supply continues to increase, the gap between MCNs increasingly comes from content organization, operational rhythm, and the ability to control commercial conversion.
_Head Leopard Research Institute is an original content platform for enterprise research in China and an innovative digital research service provider, with nearly a hundred senior analysts. Contact: _ CS@leadleo.com
The content of this article is solely the author's personal opinion and does not represent the position of Yongzhufang.

The Chinese MCN industry is accelerating its transformation as the traffic dividend peaks, shifting from reliance on top influencers to enhancing content efficiency, going overseas, and reshaping competitive logic with AI technology. The live e-commerce market size is expected to exceed 5 trillion yuan in 2024. As a key player in content production and commercial monetization, MCNs face pressures such as rising traffic costs, content homogenization, and intensified talent competition, with about 90% of institutions still operating at a loss. The industry urgently needs to find a stable profit model

MCN Industry Transformation: New Competitive Logic After Traffic Peaks