Entries tagged with “revenue streams” from Tools of Change for Publishing
Redefining Professional Content and Accepting Digital's Limitations
Mac Slocum
November 18, 2008
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Scott Karp expands on claims that Hulu is nipping at YouTube's heels with 10 pointed observations about the future of media. Karp's full list is recommended reading, but the following points inspired a few thoughts of my own:
1 . Professional content still has A LOT more value than "user-generated content."
This bodes well for publishers, studios and other companies that have attained professional status, but there's another aspect that deserves mention: The concept of professional in the digital realm is transforming from exclusive to inclusive.
Under traditional models with limited channels, a professional was someone who achieved a certain title through luck, talent and output; the content produced by these people was deemed professional by default. But digital platforms allow consumers to choose material on their own terms, and with that comes a shift of the professional label from job association to consumer impression. If consumers deem a piece of "user-generated" content to be professional, then it is (to those particular consumers). And if enough consumers assign the same value to the same content, advertisers will eventually get on board. We're in the very early stages of this professional transition (and the ensuing debate), but I'm excited to see how a reimiagining that includes both traditional companies and upstart professionals plays out.
8. Most analogue media businesses, when fully transitioned to the web, will likely bear little resemblance to the original businesses.
Karp summarizes something that's been gnawing at me for months: the old models just don't hold up in the digital world. Distribution went from narrow and expensive to wide and cheap; audiences once limited to specific channels have dispersed across a broad landscape; Web advertising revenue will not replace traditional ad revenue; and, after 10-plus years of Web use, consumers now expect basic digital content to be free. Fighting against these changes delays the inevitable, but acceptance opens up enormous opportunity to build leaner businesses that use content, community and the Web's efficiences to sell scarce products (i.e. targeted research, consulting, education, events, experiences, and access).
An On-Demand Night at the Opera
Mac Slocum
October 15, 2008
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The Metropolitan Opera is letting its inner geek run free. Performances will soon be available as pay-per-stream feeds and subscription packages through The Met's Web site. From the New York Times:
For $3.99 or $4.99 per streamed opera, users will have a six-hour window in which to listen to or watch a production, once it has started. A monthly subscription for $14.99 brings unlimited streaming, while a yearly subscription costs $149.99.
On the surface this seems like a no-brainer: serve a passionate audience while expanding the boundaries of "experience." Major League Baseball uses a similar model with its online offerings, and it's done quite well.
Watch the YouTube Video, Buy the Product
Mac Slocum
October 8, 2008
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YouTube's Content ID service, something we've covered in the past, gives publishers two options for handling unauthorized videos: the material can be removed from YouTube or it can be turned into advertising/revenue opportunities.
An article in today's New York Times shows which option Google prefers -- Content ID can now be used to associate "click-to-buy" links with video clips:
Music labels could choose to place the e-commerce links next to their own videos or on videos uploaded by users, whose images or soundtrack they identified using YouTube's Content ID system, which allows content owners to find unauthorized material on the site.
Click-to-buy links are shown below the video player on YouTube pages. It's unclear if this functionality will be integrated into videos embedded on external sites since this would require some sort of revenue share between the content owner, YouTube, the retailer and Web sites that publish embedded clips.
Links are currently limited to iTunes and Amazon products and are only viewable by U.S. visitors. YouTube says expansion plans are in the works.
Levels of Quality and Revenue Streams
Mac Slocum
September 3, 2008
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In a New York Times piece looking at a new batch of Web shows, Mike Hale writes:
Oddly enough, waiting through the commercials at the beginning of each snippet didn't bother me. I could have avoided them by going to YouTube, but the lower video quality and ugly viewing environment there -- still insulting after all these years -- made the ads at the CBS site seem palatable.
Last month, experts at the RBC Capital conference said advertisers were still wary of associating their brands with user-generated videos, but there's a demand for professional content. From News.com:
Video ad executives said that while YouTube has a lot of inventory that's hard to monetize, sites with professional content such as Hulu.com don't have enough inventory to serve demand from brand advertisers.
Consumers are also interested in professionally produced material. A 2007 report (pdf) from the Pew Internet and American Life Project found:
Overall, 62% of online video viewers say that their favorite videos are those that are "professionally produced," while 19% of online video viewers express a preference for content "produced by amateurs." Another 11% say they enjoy both professionally-produced video and amateur online video equally.
Connecting the dots, it seems there's an opportunity for publishers to link ad-based revenue streams, levels of download quality, and audience experience. For example:
- A studio could post low-fi versions of its Web shows to YouTube, social networks and other Web destinations. The free videos would include branding and links to higher-quality versions of the same material on different sites. These low-quality videos would act as a brand campaign for the show, reaching out across a broad base of users to increase awareness and (hopefully) motivate a percentage of the viewing audience to access the high-quality videos. This is the same technique TV networks use when they advertise upcoming shows during popular broadcasts (e.g. anyone watching Fox lately knows the network is hedging its bets on "Fringe.").
- High-quality downloads would be available through a studio's own site or through upper-tier services like Hulu. These videos would include pre- and post-roll advertising from sponsors. If the show proves successful, studios could take a note from Joss Whedon's recent Web effort, Dr. Horrible's Sing-Along Blog, and sell related downloads, soundtracks and merchandise.
This process extends to other media areas. On the print side, publishers could push basic material out to a wide audience through Scribd and other text-centric services, while also driving a percentage of the audience toward high-quality digital and print editions available through established retail channels (Web-based and otherwise). Earlier this year, Trent Reznor employed a similar tiered strategy with the Nine Inch Nails album "Ghosts I-IV" and the results were positive.
I realize this is back-of-the-envelope analysis, but this emerging mix of low-fi brand building and consumer/advertiser demand for professional-level content bodes well for publishers experimenting with digital delivery.
TOC Recommended Reading
Mac Slocum
August 14, 2008
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Could the iPhone be a Kindle Killer? (Bill Trippe, Gilbane Publishing Practice Blog)
Here's a project I would love to do if I had the time--a face-off between Kindle, the iPhone, the Sony Reader, an eBook Technologies ETI-1, and a few other devices. Take a few book types--novel, textbook, graphical book, business document to begin with--and create a feature matrix and evaluation criteria.
Random Ebook Thoughts From A Jetlagged Mind (Kassia Krozser, Booksquare)
Here's a truth: ebooks sell far better than numbers from traditional publishers indicate. This is because there's a huge market for erotica out there. Women buy erotic ebooks instead of purchasing physical books because, well, if you're female and over thirty, you've been taught that good girls don't go there. Actually, good girls do. They just do it under the radar.
Why blog publishing 'failed' in the UK (Ashley Norris, TechCrunch UK)
... many brands and their agency planers have chosen to play it safe and will work with established media brands or mega portals like MSN, even when the ads themselves will be seen by a less focussed and often an inappropriate audience
Web Video Advertising Stuck on Pause
Mac Slocum
August 8, 2008
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Users are flocking to Web videos and video companies are serving millions of streams, but video executives speaking at the RBC Capital conference noted that advertisers -- the final variable in this equation -- have not fully embraced the format. From News.com:
So when and for whom will the money start rolling in? Video ad executives said that while YouTube has a lot of inventory that's hard to monetize, sites with professional content such as Hulu.com don't have enough inventory to serve demand from brand advertisers.
TOC Recommended Reading
Mac Slocum
August 7, 2008
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What's Really Killing Newspapers (Jack Shafer, Slate)
Other institutions do far better jobs at issuing social currency these days. What is Facebook but the Federal Reserve Bank of social currency? And it's all social currency you can use! Like cocktail chatter, a Facebook posting--be it a link, a list, a photo, or travel plans--conveys the message, I am here. Listen to me. A well-executed Facebook presence, like a superb pontification at the bar or a great phone-in to sports talk radio, demonstrates one's status within one's existing social network. If skillfully wielded, a Facebook page can increase a person's status by attracting "cooler" or more influential friends. These days, you can't raise your status more than a bump by carrying the Wall Street Journal under your arm.
The Plight of Politico -- And Everyone Else (Ezra Klein, The American Prospect)
A year-and-a-half after launch, [Politico is] getting 3.5 million unique visitors per month and 25 million page views. And yet not only is it unprofitable, but 60 percent of its revenues come from advertising in the 27,000 circulation print version. In other words: Politico got the online readership it dreamed of, but it hasn't come even close to figuring out how to monetize it.
Secrets of book publishing I wish I had known (Mark Hurst, Good Experience)
Publishers and bookstores are in it for the money. But you, the author, can't be in it for the money - it doesn't pay enough. You should write a book because you believe in it. And that's the trouble: what you love isn't necessarily what publishers believe will sell. If you can find a topic that you love and that will sell in the market, well then, go forth and type. You're one of the lucky ones. [Emphasis included in original post.]
Last.fm Cuts Artists in on Ad Revenue
Mac Slocum
July 9, 2008
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Last.fm is sharing ad revenue with with bands through its new Artist Royalty Program. From Wired's Listening Post:
Bands and labels that register (or already registered) will start accruing money into Last.fm accounts whenever their music is streamed from the site as of today [7/9/08]. The company already pays artists through rights organizations, including SoundExchange, but this new plan allows artists to receive direct payment for their music being streamed without joining ...
As Wired notes, some bands are embracing an aggregate model that pulls in multiple revenue streams from a variety of sources -- concerts, merchandise, album sales, licensing, etc. A program like Last.fm's rev share won't replace past royalties (those are dwindling or already gone), but it could contribute to a multi-pronged, diversified income.
Writers can employ similar strategies by mixing revenue from traditional outlets (books, columns, teaching, conferences) with ad and affiliate income via blogs and podcasts.
PBS Online Videos Include Advertising
Peter Brantley
June 12, 2008
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PBS is releasing shows on the video site Hulu, but incorporating advertising with a revenue sharing plan. The New York Times Bits blog discusses the move with Andrew Russell, senior vice president of PBS Ventures:
PBS has moved online slowly, and right now it makes only a small fraction of its content available over the Internet. One reason is the complexity of the rights to its programs. Nova, for example, is produced by WGBH in Boston, which acquires individual episodes from various production companies. Only in some cases does PBS actually have the rights to distribute shows online.
Mr. Russell said that by exploring digital distribution with the programs that the network does have rights to, it hopes to build the case to show that producers should let it distribute their shows online. This means offering them a good share of the advertising revenue or download fees. The online deals also show corporate and foundation sponsors that the programs are reaching a wider audience.
An Argument Against "Freemium" Content
Mac Slocum
May 13, 2008
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The "pay to remove ads" model -- also known as "freemium" -- is inherently flawed, argues Andrew Parker:
Why? Because the people in your audience with disposable income who are willing to pay for web services are the same ones that will self-select out of your audience for your ads. So, all that remains in your audience are people that are too cheap to opt out. That doesn't sound like the audience that Disney (DIS), Coca Cola (CKE), or even your average direct response advertiser wants to reach.
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