Income Generation And Partnerships

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Income Generation And Partnerships

• Simon Hawkins

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Agenda

• Income Generating Schemes
• Partnerships Associations

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Income generation

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

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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

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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

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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

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Potential audiences Commercial
Source Gartner Group Study Multimedia Asset
Management Comes of Age
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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

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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

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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.

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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

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Sales Online Case Studies

• Collage(Corporation of London)
• http//collage.nhil.com/

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Sales Online Case Studies

• Collage
• Typical costs for images

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Sales Online Case Studies

• Compass(British Museum)
• http//www.british-museum.ac.uk

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Sales Online Case Studies

• Compass typical prices

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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

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Subscription Case Studies

• Scran Scottish Cultural Resource Access
  Network
• http//www.scran.ac.uk

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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

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Subscription Case Studies

• Fathom - on-line learning resource
• http//www.fathom.com/

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Subscription Case Studies

• Northern Light(formerfreeInternetsearchengin
  e)http//www.northernlight.com

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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

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Licensing Examples

• Bridgemanhttp//www.bridgeman.co.uk

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Licensing Examples

• Corbishttp//www.corbis.com

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Licensing Examples

• Hulton Getty
• http//search.hultongetty.com/

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Licensing Examples

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

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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

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Advertising Examples

• MSN
• http//www.msn.co.uk

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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

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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

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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!

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Sponsorship - Examples

• Age Concern
• http//www.ageconcern.co.uk

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Sponsorship Examples

• The Tate
• www.tate.org.uk

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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

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Online Shops - Examples

• The Tate
• http//www.tate.org.uk/shop/browse.htm

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On-line Shops - Examples

• The V A Museum
• http//www.vandashop.co.uk/

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On-line Shops - Examples

• National Gallery
• http//www.nationalgallery.co.uk/

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Partnerships

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

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Partnerships- Examples

• Visit Britain
• http//www.visitbritain.com/

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Partnerships - examples

• Kent Tourism
• http//www.kenttourism.co.uk/en/index.asp

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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

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Questions/queries?

• Simon Hawkins
• Simon_at_harvardcs.com
• Tel [phone]
• Fax [phone]
• Further Information
• http//www.ukoln.ac.uk/nof/support/help/papers/inc
  omegeneration.htm