Disney Digital Network

Disney Digital Network was an American digital-media and online-content network operated by The Walt Disney Company. It was created in 2017 when Disney absorbed Maker Studios, the multichannel network that Disney had acquired in 2014. The network represented Disney's effort to organize creator-led programming, branded digital properties, online video channels, and social-media entertainment within a single operating structure. The business originated with Maker Studios, founded in 2009 by a group of online-video entrepreneurs and creators. Maker was initially conceived as an incubator for YouTube talent and developed projects around creator collectives and so-called Super Channels, including The Station. That early model did not fully take hold, and the company moved toward the multi-channel network model, providing participating creators with production, sales, marketing, rights-management, and audience-development services in exchange for a share of advertising and other revenue. Maker expanded rapidly as YouTube became a major distribution platform. By 2012, channels associated with the network were reported to have accumulated more than one billion monthly views and tens of millions of subscribers. Its roster and affiliated brands included entertainment, gaming, animation, music, family, lifestyle, and comedy properties. Maker also worked with established entertainers and companies, including Snoop Dogg, Tribeca Enterprises, and Kevin Smith. Its most prominent productions included Epic Rap Battles of History, while its Polaris sub-network represented major gaming and online-video personalities. Disney agreed to acquire Maker in March 2014. The announced transaction had a base value of $500 million, with additional consideration tied to performance milestones. After the acquisition, Maker operated within Disney's broader consumer-products and interactive structure and pursued partnerships involving digital programming, online creators, and video libraries. Disney's ownership gave Maker access to the resources and commercial relationships of a major entertainment company, but the business also experienced executive changes, layoffs, and reductions in its creator-partner roster. In February 2017, Maker announced plans to reduce its YouTube partnerships substantially, from approximately 60,000 to about 1,000. The change reflected the difficulty of managing a very large network of creators and dissatisfaction among some partners with contract terms and exit procedures. On May 2, 2017, Disney absorbed Maker Studios into the newly formed Disney Digital Network. The new network supported properties such as Oh My Disney, Disney Style, Disney Family, Disney Eats, and gaming and creator brands inherited from Maker. It also produced or distributed online programs including Hyperlinked, Club Mickey Mouse, Polaris Primetime, Player Select, Parker Plays, and Disney Comics in Motion. Disney Digital Network continued to pursue platform partnerships. In 2018, Twitch and Disney announced an arrangement involving exclusive content from selected Disney-affiliated YouTube creators, including Markiplier, Jacksepticeye, Strawburry17, and LuzuGames. The network's active period was relatively short, and its activities were later folded into other Disney operations as the company reorganized its digital-media strategy. The brand is therefore treated as defunct, although some of its programs, channels, and creator relationships continued under other Disney or platform structures.

Disney Digital Network's history is inseparable from Maker Studios, the YouTube multi-channel network that preceded it. Maker was founded in 2009 by online-video entrepreneurs and creators including Lisa Donovan, Danny Zappin, Scott Katz, Kassem Gharaibeh, Shay Carl, Rawn Erickson II, Ben Donovan, Philip DeFranco, Glasgow Phillips, Michael Gallagher, Matthew Clawson, and Paul Ballon. The founders initially imagined an incubator for YouTube talent, using collective programming projects such as The Station to develop and promote creators. When that approach failed to develop into a sustainable operating model, Maker adopted the multi-channel network structure, supporting third-party channels through production, advertising, marketing, rights management, and distribution services. Maker grew quickly during the early expansion of online video. In 2012, it reported more than one billion monthly views across its affiliated channels and stated that its network had accumulated tens of millions of subscribers. It briefly became the leading independent YouTube network by some industry measures before being overtaken by Fullscreen. The company built a varied portfolio spanning comedy, gaming, animation, music, family programming, lifestyle, and creator entertainment. Its brands included The Station, Polaris, The Game Station, Animonster, Cartoonium, The Mom's View, Tutele, and Maker Music Network. It also worked with prominent individual creators and established entertainment businesses. The company attracted attention beyond its growth figures. In late 2012 and 2013, Maker became involved in a public dispute with Ray William Johnson, whose Equals Three program had been associated with the network. Johnson objected to proposed or existing arrangements involving advertising revenue and ownership of intellectual property, and the dispute became an early high-profile example of the contractual tensions between online creators and multi-channel networks. Maker also underwent executive changes, including the departure of Danny Zappin as chief executive and the appointment of Ynon Kreiz, followed by Courtney Holt. Disney agreed to purchase Maker Studios in March 2014. The transaction had an announced base price of $500 million and possible additional consideration if specified financial milestones were achieved. A competing bid from Relativity Media was reported during the process, but Maker continued with Disney. Following the acquisition, Maker became part of Disney's consumer-products and interactive activities. The new ownership supplied access to Disney's brands, commercial infrastructure, and entertainment relationships, while Maker continued to operate as a digital-video network. Partnerships included a relationship with Jukin Media and work connected with online entertainment properties such as FailArmy. The Disney-owned operation subsequently faced restructuring, layoffs, executive turnover, and criticism from some creators regarding contract duration and the difficulty of leaving the network. In February 2017, Maker announced that it intended to reduce its YouTube partnerships from roughly 60,000 to approximately 1,000. On May 2 of that year, Disney absorbed Maker Studios into Disney Digital Network. The new structure combined inherited creator and gaming properties with Disney-branded digital outlets such as Oh My Disney, Disney Style, Disney Family, and Disney Eats. Disney Digital Network produced and distributed a range of online programs, including Hyperlinked, Club Mickey Mouse, Polaris Primetime, Player Select, Parker Plays, Legend of the Three Caballeros, Disney Dream Job: Game Designer, and Disney Comics in Motion. In 2018, Twitch announced an arrangement for exclusive content from several Disney-affiliated creators. The network's branded existence did not become a long-term standalone Disney division; its programming, channels, and relationships were subsequently handled through other Disney and platform operations. The network is consequently best understood as a transitional structure in Disney's effort to integrate the creator economy with its established entertainment portfolio.

1. 2018Twitch creator-content partnership

   Twitch secures exclusive content from a group of Disney-affiliated online creators.

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2. 2017Disney Digital Network is created

   Disney absorbs Maker Studios into a newly formed digital network and sharply reduces the intended partner roster.

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3. 2015Maker becomes part of Disney consumer and interactive operations

   The acquired network is placed within Disney's consumer-products and interactive corporate structure.

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4. 2014Disney acquires Maker Studios

   Disney agrees to acquire Maker for $500 million, subject to potential performance-based additional consideration.

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5. 2012Maker reaches large-scale YouTube distribution

   The network reports more than one billion monthly views across affiliated channels and substantial subscriber growth.

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6. 2009Maker Studios is founded

   Maker Studios begins as an online-video incubator and later develops into a YouTube multi-channel network.

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A Disney-backed network for creator-led video, branded digital entertainment, gaming, family content, and social-media programming.

• Creator and YouTube network servicesDigital media services2009

  The network supported online creators through channel management, advertising sales, production assistance, rights administration, marketing, and audience development. This capability was inherited from Maker Studios and formed the operational foundation of Disney Digital Network.

• PolarisGaming and creator network

  Polaris was a gaming-focused creator network associated with Maker Studios. It supported gaming personalities, shows, and video programming and later contributed talent and formats to Disney's broader digital-video activities.

• Club Mickey MouseFamily digital series2017

  Club Mickey Mouse was an online revival of The Mickey Mouse Club. It was designed for distribution through social and digital platforms rather than as a conventional broadcast television program.

• HyperlinkedScripted digital series2017

  Hyperlinked was a Disney Digital Network series distributed through YouTube Red, now known as YouTube Premium. Its story centered on a group of girls building a social network and reflected the network's focus on youth-oriented, platform-native entertainment.

• Epic Rap Battles of HistoryComedy and music video series

  Epic Rap Battles of History was one of Maker Studios' most successful productions. The series presented fictional rap contests between historical and popular-culture figures and became a major example of the network's ability to scale creator-originated formats.

• 2017Reduce the Maker partner roster and establish Disney Digital NetworkStrategy

  The very large creator roster generated operational complexity and dissatisfaction over contracts and termination procedures.

  What changed. Disney announced plans to reduce Maker's YouTube partnerships from approximately 60,000 to about 1,000 and absorbed the studio into Disney Digital Network.

  Aftermath. The reorganization narrowed the network's focus and aligned creator programming more closely with Disney-owned brands and selected digital properties.

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• 2017End the Maker relationship with PewDiePieOther

  Media criticism followed content that was widely characterized as antisemitic.

  What changed. Maker dropped PewDiePie from its network.

  Aftermath. The decision demonstrated the reputational risks associated with representing high-profile independent creators.

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• 2014Acquire Maker StudiosM&A

  Disney sought a stronger position in rapidly expanding online video and creator-led entertainment.

  What changed. The Walt Disney Company agreed to purchase Maker Studios for $500 million, with possible additional consideration tied to performance milestones.

  Aftermath. Maker became a Disney subsidiary and was later reorganized into Disney Digital Network.

  Acquisition consideration. $500 million announced base value; up to $950 million if performance milestones were met (2014 transaction announcement)

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• 2017PewDiePie relationship ends after antisemitism controversyControversy

  Maker ended its relationship with PewDiePie after widespread criticism of jokes and actions that media outlets described as antisemitic. The controversy affected one of the network's most prominent creator relationships.

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• 2012Ray William Johnson contract disputeControversy

  Ray William Johnson's departure from Maker Studios led to a public disagreement over advertising revenue, intellectual-property ownership, contract pressure, and control of associated accounts. The dispute became a prominent example of conflict between a creator and a multi-channel network.

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• 2018Twitch and Disney arrange exclusive creator content

  Twitch announced a deal for exclusive content from selected Disney-affiliated online creators, including Markiplier, Jacksepticeye, Strawburry17, and LuzuGames.

  M&AOther
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• 2017Maker Studios is absorbed into Disney Digital Network

  Disney reorganized Maker Studios into the newly established Disney Digital Network and announced a much smaller target roster of YouTube partnerships.

  Leadership change
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• 2014Disney agrees to acquire Maker Studios

  The Walt Disney Company agreed to acquire Maker Studios for $500 million, with potential additional consideration linked to financial milestones.

  M&A
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• 2014Relativity Media submits a competing Maker bid

  Relativity Media made a competing offer reportedly worth up to $1.1 billion, but Maker rejected the bid and proceeded with Disney.

  M&A
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• 2012Maker Studios reports rapid YouTube network growth

  Maker reported more than one billion monthly views across affiliated channels and a large subscriber base, highlighting the scale reached by its multi-channel network model.

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• 2012Maker Studios raises a major financing round

  Maker announced a $36 million financing round led by Time Warner Investments as it expanded its online-video network.

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1. Disney Digital Network