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 SimonSimon@harvardcs.com@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