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Fashioning growth

Posted By AndyDickens On 24-11-2015 @ 4:20 pm In News | Comments Disabled

It’s a year since RTL Group took control of StyleHaul, a fashion-focused MCN with YouTube stars like Zoella and Super Seven Girls on its roster. Andrew Dickens finds out what’s hot this season.

Zoella [1]

Zoe Sugg’s Zoella YouTube channel is the fourth most watched in the UK

Fashion- and shopping-focused StyleHaul’s network of creators includes some of the biggest YouTube stars around. Ubiquitous vlogger Zoe Sugg, whose Zoella YouTube channel is the fourth most watched in the UK (nine million subscribers), according to YouTube data, is part of the StyleHaul family. So too is Sugg’s younger brother Joe, who recently saw his ThatcherJoe YouTube channel pass the five million subscribers mark.

There are plenty more to mention of course, including US talents Seven Super Girls and Joey Graceffa – both of whom have contributed considerably to the network which claims to attract 1.5 billion monthly videos views across its fashion, beauty and lifestyle programming.

StyleHaul was founded by marketing guru Stephanie Horbaczewski in 2011 with backing from Machinima founders Allen and Aaron DeBevoise. Sitting alongside Horbaczewski on the company’s management board is chief revenue officer Alison Kennedy, previously global sales and product strategy chief at digital media company Glam Media; chief content officer Mia Goldwyn, who joined from Paramount Pictures last year, and chief financial officer Seth Klein, previously of CityGrid Media.

Olivier Delfosse

Olivier Delfosse

In May 2013, the multichannel network (MCN) raised US$6m through a strategic investment from RTL Group, whose majority owner Betelsmann had already pumped US$6.5m into the network. RTL then paid a further US$107m for a 94% majority stake in StyleHaul in November 2014, with the German broadcaster pledging to invest an additional US$20m into the MCN to fund its growth plan.

The acquisition was part of RTL’s strategy to expand its presence in the North American online video space, after already taking a majority stake in Vancouver-based online video company BroadbandTV in 2013.

Olivier Delfosse joined StyleHaul as chief operating officer in February, after a stint as senior VP of digital at RTL subsidiary FremantleMedia. The LA-based exec says the move was a “pretty natural transition” due to extensive international digital experience already gained at FremantleMedia. Nonetheless, he maintains the challenge of leading StyleHaul’s international strategy is no small feat. “We are a high-growth company within the RTL family in terms of how quickly we are expanding in terms of reach, distribution and revenue,” says Delfosse.

He explains that StyleHaul follows a “traditional MCN business model,” adding: “We follow the general MCN business model here, where we offer YouTubers a value service. In exchange for that we take a little piece of their revenue.

Joe Sugg's ThatcherJoe channel has five million subscribers

Joe Sugg’s channel has five million subscribers

“However, our business is not just based around that model. We also offer creative marketing solutions for advertisers and now we are such a big company we do that a lot more.” Delfosse declines to reveal the exact percentage taken from creators, but insists the rate is “one of the fairest” around the MCN landscape. “We offer very competitive rates for talent and network,” he says. “Now we need to be nimble and offer more services to creators and continue to be flexible in terms of how we structure those deals.”

Delfosse claims StyleHaul, which employs just under 100 people, owns “99 of the top 100 fashion and beauty influencers in the UK” and has a presence in most corners of the world. The firm opened an office in Brazil earlier this year, adding to its other offices in New York, Chicago, London and Singapore. The company also operates StyleHaul Mundo, its Spanish- and Portuguese-language channel which houses more than 900 channels, including those run by notable YouTubers Paulda Galindo, Priscila Gonzalex and Marialejandra Marrero.

Across Asia, StyleHaul’s popular YouTube channels include NinaBeautyWorld in Thailand, Cynthian Sunartio in Indonesia, AnaVictorino in the Philippines and Emily Quak in Malaysia.

However, Delfosse maintains launching into more international territories is currently not a priority for the company. “We may expand more in Europe, in particular Germany, given that our parent company is there and that could be some strategic significance,” he says. “But I don’t think there’s a current active plan to do that. It’s something that’s always done in a measured way.”

US MCN talent Seven Super Girls

US MCN talent Seven Super Girls

Disney-owned Maker Studios is among a plethora of MCNs now making its own content. But what of StyleHaul’s original production ambitions?

In May, the company teamed up with cosmetics brand Maybelline and retail giant Amazon to create and produce Vanity, StyleHaul’s first scripted series. Starship Troopers actress and Bond girl Denise Richards stars in the 12×11’ series. It’s an example of StyleHaul tapping into marketing opportunities, with Maybelline buying sponsorship for the fashion-based show and Amazon distributing the shortform videos.

“Our originals team is producing a slate of programmes with partners,” says Delfosse. “We are going to continue to develop them but the distribution on OTT platforms are going to vary depending on who the buyer is. This could also be traditional TV. For instance we have a television show in development with Oxygen channel at this moment.”

That show is titled Survival of the Clickiest, a docuseries about some of YouTube’s leading fashion and beauty vloggers. Oxygen describes the show, produced by Lentos Brand and Trium Entertainment, as “having no rules, no back-up plans and plenty of haters,” so it’s a given that some of StyleHaul’s own creators will feature in the series. However, no air date is set at this stage.

StyleHaul’s mainstream ambitions were made even clearer earlier this year when the firm partnered with Samuel Goldwyn Films to launch Fresh Dressed, a documentary exploring fashion in the hip-hop culture that premiered at this year’s Sundance Film Festival. The show was released in select theatres and features on CNN and Vimeo On Demand.

Hence, all options appear to be on the table for StyleHaul for the time being. But with a large number of partnerships already formed, the company will also be working closely with other digital firms that Delfosse says “fall under the RTL umbrella.”

“We will continue to grow our content on a number of platforms, innovate marketing solutions for our key advertisers and establish StyleHaul as a brand for millennials who are obsessed with all things style,” he says.


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