Income Generation Income Generation And PartnershipsAnd Partnerships
Simon HawkinsSimon Hawkins
AgendaAgenda
Income Generating SchemesIncome Generating Schemes Partnerships & AssociationsPartnerships & Associations
Income generationIncome generation
Likely to become more important in Likely to become more important in future (DCMS will encourage)future (DCMS will encourage)
Essential for sustainabilityEssential for sustainability Three main audiences:Three main audiences:
PublicPublic CommercialCommercial EducationEducation
Potential audiences - PublicPotential audiences - Public
Large addressable marketLarge addressable market >300 million globally>300 million globally >20 million in UK>20 million in UK
Fairly high riskFairly high risk Market still settling downMarket still settling down Low income per sale, volume requiredLow income per sale, volume required
Potential audiences - Potential audiences - CommercialCommercial
Large and growing addressable market:Large and growing addressable market: Almost half of all businesses are now Almost half of all businesses are now
connected to the Internet connected to the Internet (over 175,000 businesses)(over 175,000 businesses)
20% increase in Internet take up in 20% increase in Internet take up in first 6 monthsfirst 6 months
Source NOP Research Group, Oct. 2000Source NOP Research Group, Oct. 2000
Potential audiences - Potential audiences - CommercialCommercial
The stills archive industry has a The stills archive industry has a turnover of around £1.4 billion a year.turnover of around £1.4 billion a year.
Source: Observer Business Page, 1st November 1998Source: Observer Business Page, 1st November 1998
The estimated size of the global The estimated size of the global content-usage market is $US282 content-usage market is $US282 billion .billion .
Source: Gartner Group Study: Multimedia Asset Management Source: Gartner Group Study: Multimedia Asset Management Comes of Age Comes of Age
Potential audiences – Potential audiences – CommercialCommercial
Industry Revenue ($ billions)
83.6
29.8
4020.3
35.4
1.5
25.9
45.5
Newspaper andmagazine publishing
Book publishing
Software publishing
CD-ROMs
Filmed entertainment
Satellite broadcasting
Cable TV
Radio / TVbroadcasting
Source: Gartner Group Study: Multimedia Asset Management Comes of Age Source: Gartner Group Study: Multimedia Asset Management Comes of Age
Potential audiences - Potential audiences - CommercialCommercial
Revenue levels can be high:Revenue levels can be high: £125,000 from the sale of 5,000 images £125,000 from the sale of 5,000 images
(a collection of 500,000)(a collection of 500,000) £350,000 for a national museum£350,000 for a national museum
But can be complexBut can be complex One national museum has 3,000 different One national museum has 3,000 different
pricing levelspricing levels Medium riskMedium risk
High income per sale. Low volumeHigh income per sale. Low volume Marketing requiredMarketing required May be better to partnerMay be better to partner
Potential audiences - Potential audiences - EducationEducation
Large target audience:Large target audience: c. 2,000 UK H.E. and F.E. establishmentsc. 2,000 UK H.E. and F.E. establishments Around 22,000 primary and secondary schools in Around 22,000 primary and secondary schools in
UKUK c. 7.5 million pupilsc. 7.5 million pupils c. 502,000 teachersc. 502,000 teachers
Medium riskMedium risk Lots of money potentially availableLots of money potentially available Hard market to break into unless deals done Hard market to break into unless deals done
centrallycentrallySource: DfEE Statistics, 1999Source: DfEE Statistics, 1999
Potential audiences – Potential audiences – EducationEducation
For more information, see: For more information, see: www.www.dfeedfee..govgov.uk/.uk/standardsfundstandardsfund//ngfldevongfldevo.html.html
Also see the following pages concerning the Also see the following pages concerning the Regional Broadband Consortia: Regional Broadband Consortia: www.www.dfeedfee..govgov.uk/.uk/standardsfundstandardsfund//ngflrbcsngflrbcs.html.html
To access these, you may need to visit To access these, you may need to visit www.www.dfeedfee..govgov.uk/.uk/standardsfundstandardsfund/index./index.cfmcfm and use and use the login name 'guest' with no password.the login name 'guest' with no password.
Income From Your Digital Income From Your Digital CollectionCollection
Sale of content onlineSale of content online Search, browse and download Search, browse and download
contentcontent Control of licensing and IPRControl of licensing and IPR Security considerationsSecurity considerations 5%-10% of collections will sell 5%-10% of collections will sell
annuallyannually
Sales Online Case StudiesSales Online Case Studies CollageCollage
(Corporation of (Corporation of London)London)
http://collage.nhil.com/http://collage.nhil.com/
Sales Online Case StudiesSales Online Case Studies
CollageCollage Typical costs for images:Typical costs for images:
Paper size Cost P & P UK P& P Overseas
8x6 inches £5.50 £1.50 £2.50
10x8 inches £8.50 £1.50 £2.50
12x10 inches£12.5
0£1.50 £2.50
18.3 x 12.4 inches
£17.50
£2.75 £3.75
Sales Online Case StudiesSales Online Case Studies
CompassCompass(British (British Museum)Museum)
http://www.british-museum.ac.ukhttp://www.british-museum.ac.uk
Sales Online Case StudiesSales Online Case Studies
Compass – typical pricesCompass – typical prices
Subscriptions Based Subscriptions Based ServicesServices
Subscription fee is chargedSubscription fee is charged Usually multi-tier with some free elementsUsually multi-tier with some free elements Billing systems are simplerBilling systems are simpler Revenue levels are more cappedRevenue levels are more capped Migration to this model more Migration to this model more
commonplace:commonplace: BBC, Times newspaper to charge for BBC, Times newspaper to charge for
advanced contentadvanced content On Internet - Yahoo, Google, NorthernLight On Internet - Yahoo, Google, NorthernLight
now charging for premium servicesnow charging for premium services
Subscription Case StudiesSubscription Case Studies Scran – Scran –
Scottish Scottish Cultural Cultural Resource Resource Access Access NetworkNetwork
http://www.scran.ac.ukhttp://www.scran.ac.uk
Subscription Case Studies Subscription Case Studies
SCRAN - costs vary, depending on SCRAN - costs vary, depending on nature of user/organisation:nature of user/organisation: £25 p.a. for a home user£25 p.a. for a home user £60 p.a. for a primary school£60 p.a. for a primary school £120 p.a. for a secondary school£120 p.a. for a secondary school For H.E./F.E. in 2002 – from £100 - For H.E./F.E. in 2002 – from £100 -
£400 p.a. *£400 p.a. * £20 for life for teachers£20 for life for teachers
* subsidised by JISC* subsidised by JISC
Subscription Case StudiesSubscription Case Studies Fathom - Fathom -
on-line on-line learning learning resourceresource
http://www.fathom.com/http://www.fathom.com/
Subscription Case StudiesSubscription Case Studies
Northern Northern LightLight(former(formerfreefreeInternetInternetsearchsearchengine)engine)
http://www.northernlight.comhttp://www.northernlight.com
Licensing To Third PartiesLicensing To Third Parties
Commercial picture librariesCommercial picture libraries Software companies producing Software companies producing
education materialeducation material Broadband consortiaBroadband consortia Involve licensing arrangementInvolve licensing arrangement Marketing, promotion and salesMarketing, promotion and sales Receive percentage of salesReceive percentage of sales
Licensing ExamplesLicensing Examples BridgemanBridgeman
http://www.bridgeman.co.ukhttp://www.bridgeman.co.uk
Licensing ExamplesLicensing Examples CorbisCorbis
http://www.corbis.comhttp://www.corbis.com
Licensing ExamplesLicensing Examples Hulton GettyHulton Getty
http://search.hultongetty.com/ http://search.hultongetty.com/
Licensing ExamplesLicensing Examples Heritage Image PartnershipHeritage Image Partnership
http://www.heritage-images.com/ http://www.heritage-images.com/
AdvertisingAdvertising
Sympathetic to the siteSympathetic to the site Structured fee basisStructured fee basis Charge annual feesCharge annual fees Care not to “cheapen A site”Care not to “cheapen A site” Need to identify your user baseNeed to identify your user base Quantify your user numbersQuantify your user numbers
Advertising ExamplesAdvertising Examples
MSNMSN
http://www.msn.co.ukhttp://www.msn.co.uk
Affiliate ProgramsAffiliate Programs
Site will feature a product/serviceSite will feature a product/service Common - books, CD’sCommon - books, CD’s Percentage paid per direct salePercentage paid per direct sale
5% if a general link to vendor5% if a general link to vendor 15% if to a specific book, CD, etc.15% if to a specific book, CD, etc.
Relatively easy to set upRelatively easy to set up Will need to research the best productsWill need to research the best products Can encourage people to leave your siteCan encourage people to leave your site
Affiliate Programs - Affiliate Programs - ExamplesExamples
AmazonAmazonhttp://www.amazon.co.uk/exec/obidos/http://www.amazon.co.uk/exec/obidos/subst/associates/join/associates.html/ subst/associates/join/associates.html/
WH Smith WH Smith http://www.whsmith.co.uk/whs/Go.ASP?http://www.whsmith.co.uk/whs/Go.ASP?partnership=Y partnership=Y
Internet BookshopInternet Bookshophttp://www.bookshop.co.uk/par/parpge.http://www.bookshop.co.uk/par/parpge.asp?siteno=1&Shop=56 asp?siteno=1&Shop=56
SponsorshipSponsorship
Difficult and needs time to generateDifficult and needs time to generate Usually a payment or in kind Usually a payment or in kind
donationdonation Give back exposure through logo Give back exposure through logo
exposureexposure Take care this does not cheapen nor Take care this does not cheapen nor
dominate the sitedominate the site Don’t let technology providers get Don’t let technology providers get
free adverts on your site!free adverts on your site!
Sponsorship - ExamplesSponsorship - Examples Age ConcernAge Concern
http://www.ageconcern.co.uk http://www.ageconcern.co.uk
Sponsorship – ExamplesSponsorship – Examples
The TateThe Tate
www.tate.org.uk www.tate.org.uk
Online ShopsOnline Shops
Opportunity to sell associated Opportunity to sell associated productsproducts
Heavy upfront costs (display, billing Heavy upfront costs (display, billing and shipping)and shipping)
Make sure you have a good business Make sure you have a good business casecase
Combine across consortium/other NOF Combine across consortium/other NOF projects to bring economies of scaleprojects to bring economies of scale
Online Shops - ExamplesOnline Shops - Examples
The TateThe Tate
http://www.tate.org.uk/shop/browse.htm http://www.tate.org.uk/shop/browse.htm
On-line Shops - ExamplesOn-line Shops - Examples
The V & A The V & A MuseumMuseum
http://www.vandashop.co.uk/http://www.vandashop.co.uk/
On-line Shops - ExamplesOn-line Shops - Examples
National GalleryNational Gallery
http://www.nationalgallery.co.uk/ http://www.nationalgallery.co.uk/
PartnershipsPartnerships
MuseumsMuseums LibrariesLibraries Tourist InformationTourist Information AccommodationAccommodation Travel CompaniesTravel Companies Commercial organisationsCommercial organisations
Partnerships- ExamplesPartnerships- Examples
Visit BritainVisit Britain
http://www.visitbritain.com/http://www.visitbritain.com/
Partnerships - examplesPartnerships - examples
Kent TourismKent Tourism
http://www.kenttourism.co.uk/en/http://www.kenttourism.co.uk/en/index.asp index.asp
ConclusionsConclusions
Best to consider multiple streams Best to consider multiple streams of fundingof funding
Develop detailed business plansDevelop detailed business plans Be realistic in revenue forecastsBe realistic in revenue forecasts Identify the IPR with respect to Identify the IPR with respect to
your collectionyour collection Partner wherever possiblePartner wherever possible
Questions/queries?Questions/queries?
Simon HawkinsSimon Hawkins [email protected]@harvardcs.com Tel: 01622 812347Tel: 01622 812347 Fax: 01273 471929Fax: 01273 471929
Further InformationFurther Informationhttp://www.ukoln.ac.uk/nof/support/help/http://www.ukoln.ac.uk/nof/support/help/
papers/incomegeneration.htm papers/incomegeneration.htm
Top Related