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Income Generation And Partnerships

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Income Generation And Partnerships Simon Hawkins – PowerPoint PPT presentation

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Title: Income Generation And Partnerships


1
Income Generation And Partnerships
  • Simon Hawkins

2
Agenda
  • Income Generating Schemes
  • Partnerships Associations

3
Income generation
  • Likely to become more important in future (DCMS
    will encourage)
  • Essential for sustainability
  • Three main audiences
  • Public
  • Commercial
  • Education

4
Potential audiences - Public
  • Large addressable market
  • gt300 million globally
  • gt20 million in UK
  • Fairly high risk
  • Market still settling down
  • Low income per sale, volume required

5
Potential audiences - Commercial
  • Large and growing addressable market
  • Almost half of all businesses are now connected
    to the Internet (over 175,000 businesses)
  • 20 increase in Internet take up in first 6
    months
  • Source NOP Research Group, Oct. 2000

6
Potential audiences - Commercial
  • The stills archive industry has a turnover of
    around 1.4 billion a year.
  • Source Observer Business Page, 1st November 1998
  • The estimated size of the global content-usage
    market is US282 billion .
  • Source Gartner Group Study Multimedia Asset
    Management Comes of Age

7
Potential audiences Commercial
Source Gartner Group Study Multimedia Asset
Management Comes of Age
8
Potential audiences - Commercial
  • Revenue levels can be high
  • 125,000 from the sale of 5,000 images (a
    collection of 500,000)
  • 350,000 for a national museum
  • But can be complex
  • One national museum has 3,000 different pricing
    levels
  • Medium risk
  • High income per sale. Low volume
  • Marketing required
  • May be better to partner

9
Potential audiences - Education
  • Large target audience
  • c. 2,000 UK H.E. and F.E. establishments
  • Around 22,000 primary and secondary schools in UK
  • c. 7.5 million pupils
  • c. 502,000 teachers
  • Medium risk
  • Lots of money potentially available
  • Hard market to break into unless deals done
    centrally
  • Source DfEE Statistics, 1999

10
Potential audiences Education
  • For more information, see www.dfee.gov.uk/standar
    dsfund/ngfldevo.html
  •  Also see the following pages concerning the
    Regional Broadband Consortia www.dfee.gov.uk/stan
    dardsfund/ngflrbcs.html
  •  To access these, you may need to visit
    www.dfee.gov.uk/standardsfund/index.cfm and use
    the login name 'guest' with no password.

11
Income From Your Digital Collection
  • Sale of content online
  • Search, browse and download content
  • Control of licensing and IPR
  • Security considerations
  • 5-10 of collections will sell annually

12
Sales Online Case Studies
  • Collage(Corporation of London)
  • http//collage.nhil.com/

13
Sales Online Case Studies
  • Collage
  • Typical costs for images

14
Sales Online Case Studies
  • Compass(British Museum)
  • http//www.british-museum.ac.uk

15
Sales Online Case Studies
  • Compass typical prices

16
Subscriptions Based Services
  • Subscription fee is charged
  • Usually multi-tier with some free elements
  • Billing systems are simpler
  • Revenue levels are more capped
  • Migration to this model more commonplace
  • BBC, Times newspaper to charge for advanced
    content
  • On Internet - Yahoo, Google, NorthernLight now
    charging for premium services

17
Subscription Case Studies
  • Scran Scottish Cultural Resource Access
    Network
  • http//www.scran.ac.uk

18
Subscription Case Studies
  • SCRAN - costs vary, depending on nature of
    user/organisation
  • 25 p.a. for a home user
  • 60 p.a. for a primary school
  • 120 p.a. for a secondary school
  • For H.E./F.E. in 2002 from 100 - 400 p.a.
  • 20 for life for teachers
  • subsidised by JISC

19
Subscription Case Studies
  • Fathom - on-line learning resource
  • http//www.fathom.com/

20
Subscription Case Studies
  • Northern Light(formerfreeInternetsearchengin
    e)http//www.northernlight.com

21
Licensing To Third Parties
  • Commercial picture libraries
  • Software companies producing education material
  • Broadband consortia
  • Involve licensing arrangement
  • Marketing, promotion and sales
  • Receive percentage of sales

22
Licensing Examples
  • Bridgemanhttp//www.bridgeman.co.uk

23
Licensing Examples
  • Corbishttp//www.corbis.com

24
Licensing Examples
  • Hulton Getty
  • http//search.hultongetty.com/

25
Licensing Examples
  • Heritage Image Partnership
  • http//www.heritage-images.com/

26
Advertising
  • Sympathetic to the site
  • Structured fee basis
  • Charge annual fees
  • Care not to cheapen A site
  • Need to identify your user base
  • Quantify your user numbers

27
Advertising Examples
  • MSN
  • http//www.msn.co.uk

28
Affiliate Programs
  • Site will feature a product/service
  • Common - books, CDs
  • Percentage paid per direct sale
  • 5 if a general link to vendor
  • 15 if to a specific book, CD, etc.
  • Relatively easy to set up
  • Will need to research the best products
  • Can encourage people to leave your site

29
Affiliate Programs - Examples
  • Amazonhttp//www.amazon.co.uk/exec/obidos/subst/a
    ssociates/join/associates.html/
  • WH Smith http//www.whsmith.co.uk/whs/Go.ASP?part
    nershipY
  • Internet Bookshophttp//www.bookshop.co.uk/par/pa
    rpge.asp?siteno1Shop56

30
Sponsorship
  • Difficult and needs time to generate
  • Usually a payment or in kind donation
  • Give back exposure through logo exposure
  • Take care this does not cheapen nor dominate the
    site
  • Dont let technology providers get free adverts
    on your site!

31
Sponsorship - Examples
  • Age Concern
  • http//www.ageconcern.co.uk

32
Sponsorship Examples
  • The Tate
  • www.tate.org.uk

33
Online Shops
  • Opportunity to sell associated products
  • Heavy upfront costs (display, billing and
    shipping)
  • Make sure you have a good business case
  • Combine across consortium/other NOF projects to
    bring economies of scale

34
Online Shops - Examples
  • The Tate
  • http//www.tate.org.uk/shop/browse.htm

35
On-line Shops - Examples
  • The V A Museum
  • http//www.vandashop.co.uk/

36
On-line Shops - Examples
  • National Gallery
  • http//www.nationalgallery.co.uk/

37
Partnerships
  • Museums
  • Libraries
  • Tourist Information
  • Accommodation
  • Travel Companies
  • Commercial organisations

38
Partnerships- Examples
  • Visit Britain
  • http//www.visitbritain.com/

39
Partnerships - examples
  • Kent Tourism
  • http//www.kenttourism.co.uk/en/index.asp

40
Conclusions
  • Best to consider multiple streams of funding
  • Develop detailed business plans
  • Be realistic in revenue forecasts
  • Identify the IPR with respect to your collection
  • Partner wherever possible

41
Questions/queries?
  • Simon Hawkins
  • Simon_at_harvardcs.com
  • Tel 01622 812347
  • Fax 01273 471929
  • Further Information
  • http//www.ukoln.ac.uk/nof/support/help/papers/inc
    omegeneration.htm
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