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Content 2.0: finding new ways to generate revenues

Date post: 31-Oct-2014
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from my midemnet 2010 presentation on how various content industries are making money online see more at http://www.mediafuturist.com/2010/01/my-.html
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Content 2.0 How Content Industries Find New Ways to Generate Revenues www.mediafuturist.com twitter.com/gleonhard
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Page 1: Content 2.0: finding new ways to generate revenues

Content 2.0 How Content Industries Find

New Ways to Generate Revenues

www.mediafuturist.comtwitter.com/gleonhard

Page 3: Content 2.0: finding new ways to generate revenues

New ways to sell content

New ways to do business

Page 4: Content 2.0: finding new ways to generate revenues

Please note: there are no recipes -

adapting these examples is crucial!

Page 5: Content 2.0: finding new ways to generate revenues

2010: the year of Mobile, Apps and the Tablet...?

Cross-media content, new packages and New Revenue Models

Source: Gizmodo

Page 6: Content 2.0: finding new ways to generate revenues

Magazine Publishers & Tablet PCsSource: Bonnier / Vimeo

Selling the Interface & the Packaging

Page 7: Content 2.0: finding new ways to generate revenues

Learnings from

• Are tablets and mobile devices ‘the new paper’?• It’s the content mix and the UI that makes it engaging

Music industry translation:• Mobile & Tablet Devices... the next CD Players?•Explore cross-media options, offer engaging

packages at very attractive pricepoints

Take note! It’s no longer only about the music - and pricing will need to be very aggressive

Page 8: Content 2.0: finding new ways to generate revenues

Salesforce.com: Software as a Service

• On-demand software that helps manage customer information for sales, marketing and customer support

• No software is downloaded and installed; everything is online (no ownership - all access-based)

• Revenues grew even during the recession: $ 1.29 Billion in 2009, 70.000 corporate customers

Page 9: Content 2.0: finding new ways to generate revenues

Learnings from Salesforce.com•Everything is moving to the Cloud; selling access to the cloud has real potential

•Having many different price plans is crucial to success: offer something for everyone!

Music Industry translation:• Connect the crowd and the cloud - sell access not (just) copies• Get started at a very low price, and then move up

Take note!Selling access is a different game, altogether!

Page 10: Content 2.0: finding new ways to generate revenues

O’Reilly Safari Books• Unlimited

access to 10.000 technical books online, for$42.00 / month

• Added values: videos, rough-cuts, mobile, collaboration tools etc

• 15 Million + users, out-sells all other O’Reilly offerings

Page 11: Content 2.0: finding new ways to generate revenues

Learnings from

•Their motto: “create more value than you capture”• Reach out to competitors to innovate together

Music industry translation:

•Sell access to a large library, and add lots of other values beyond the music!

Requires unusual partnerships in order to provide very deep content offerings

Take note!

Page 12: Content 2.0: finding new ways to generate revenues

Example: Farmville Game on Facebook

•Application exists only on Facebook• It’s free but you can buy goods to enhance the

experience: 800.000 tractors ‘sold’ every single day•A team of 15 Developers release new virtual items

into FarmVille twice a week; new features debut weekly.

•65 Million+ users without any advertising•1.2 Million users per day•Parent company Zynga makes est. $200M / Year

Page 13: Content 2.0: finding new ways to generate revenues

Learnings from

• It all starts with ‘free’•People will buy anything once they are hooked• Interactivity and User-Empowerment is key•Virtual items can be real sources of revenues

Music industry translation:• ‘Go inside’ the social networks• Same as above!

Take note!This requires having a lot more to sell than just the stream or download of a song!

Page 14: Content 2.0: finding new ways to generate revenues

Selling what is ‘free’ somewhere else• Good quality images• Finding the perfect photo is

quick and easy• Rights (licenses) are pre-

cleared• Low cost• Projected $200 Million in

2009 revenues• I have spend $1200 USD

on iStockphoto, myself, in the past 12 months

Page 15: Content 2.0: finding new ways to generate revenues

Learnings from

• If the price is right people will pay for convenience•The per-unit price is much lower but the total is large

Music industry translation:• Pre-cleared rights to non-hit content have great potential• Simplifying licensing, aggregation and curation is crucial

Take note!Everything needs to be fully automated, online - no veto rights!

Page 16: Content 2.0: finding new ways to generate revenues

Blogs: getting real $ from your readers“Connect with Fans & Reason to Buy”

Page 17: Content 2.0: finding new ways to generate revenues
Page 18: Content 2.0: finding new ways to generate revenues

Learnings from

People pay when they see real value AND when the price is right

Music industry translation:

People pay when they see real value AND when

the price is right

Page 19: Content 2.0: finding new ways to generate revenues

A few extra slides that were not part of my MIDEM talk

www.mediafuturist.comtwitter.com/gleonhard

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Thanks for your time!email: [email protected]

twitter.com/gleonhardFacebook: gleonhardmore presentations at

www.mediafuturist.com

“When the winds of change are blowing, some are

building shelters, and others are build windmills”


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