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Income Generation And Partnerships

Explore income-generating schemes and partnerships for sustainability. Target audiences include public, commercial, and education sectors. Learn about potential markets, revenue levels, and medium to high risks involved. Discover opportunities in content sales, subscriptions, licensing, and advertising.

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Income Generation And Partnerships

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  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 • >300 million globally • >20 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/standardsfund/ngfldevo.html •  Also see the following pages concerning the Regional Broadband Consortia: www.dfee.gov.uk/standardsfund/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. 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 £12.50 £1.50 £2.50 18.3 x 12.4 inches £17.50 £2.75 £3.75 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(formerfreeInternetsearchengine)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, CD’s • 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/associates/join/associates.html/ • WH Smith http://www.whsmith.co.uk/whs/Go.ASP?partnership=Y • Internet Bookshophttp://www.bookshop.co.uk/par/parpge.asp?siteno=1&Shop=56

  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 • Don’t 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@harvardcs.com • Tel: 01622 812347 • Fax: 01273 471929 • Further Information http://www.ukoln.ac.uk/nof/support/help/papers/incomegeneration.htm

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