Income Generation And Partnerships Simon Hawkins

Agenda Income Generating Schemes Income Generating Schemes Partnerships & Associations Partnerships & Associations

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

Potential audiences - Public Large addressable market Large addressable market >300 million globally >300 million globally >20 million in UK >20 million in UK Fairly high risk Fairly high risk Market still settling down Market still settling down Low income per sale, volume required Low income per sale, volume required

Potential audiences - Commercial Large and growing addressable market: Large and growing addressable market: Almost half of all businesses are now connected to the Internet (over 175,000 businesses) 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 20% increase in Internet take up in first 6 months Source NOP Research Group, Oct. 2000

Potential audiences - Commercial The stills archive industry has a turnover of around £1.4 billion a year. 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. The estimated size of the global content- usage market is $US282 billion. Source: Gartner Group Study: Multimedia Asset Management Comes of Age

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

Potential audiences - Commercial Revenue levels can be high: Revenue levels can be high: £125,000 from the sale of 5,000 images (a collection of 500,000) £125,000 from the sale of 5,000 images (a collection of 500,000) £350,000 for a national museum £350,000 for a national museum But can be complex But can be complex One national museum has 3,000 different pricing levels One national museum has 3,000 different pricing levels Medium risk Medium risk High income per sale. Low volume High income per sale. Low volume Marketing required Marketing required May be better to partner May be better to partner

Potential audiences - Education Large target audience: Large target audience: c. 2,000 UK H.E. and F.E. establishments c. 2,000 UK H.E. and F.E. establishments Around 22,000 primary and secondary schools in UK Around 22,000 primary and secondary schools in UK c. 7.5 million pupils c. 7.5 million pupils c. 502,000 teachers c. 502,000 teachers Medium risk Medium risk Lots of money potentially available Lots of money potentially available Hard market to break into unless deals done centrally Hard market to break into unless deals done centrally Source: DfEE Statistics, 1999

Potential audiences – Education For more information, see: For more information, see: Also see the following pages concerning the Regional Broadband Consortia: Also see the following pages concerning the Regional Broadband Consortia: To access these, you may need to visit and use the login name 'guest' with no password. To access these, you may need to visit and use the login name 'guest' with no password.

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

Sales Online Case Studies Collage (Corporation of London) Collage (Corporation of London)

Sales Online Case Studies Collage Collage Typical costs for images: Typical costs for images: Paper sizeCostP & P UKP& P Overseas 8x6 inches£5.50£1.50£ x8 inches£8.50£1.50£ x10 inches£12.50£1.50£ x 12.4 inches £17.50£2.75£3.75

Sales Online Case Studies Compass (British Museum) Compass (British Museum)

Sales Online Case Studies Compass – typical prices Compass – typical prices

Subscriptions Based Services Subscription fee is charged Subscription fee is charged Usually multi-tier with some free elements Usually multi-tier with some free elements Billing systems are simpler Billing systems are simpler Revenue levels are more capped Revenue levels are more capped Migration to this model more commonplace: Migration to this model more commonplace: BBC, Times newspaper to charge for advanced content BBC, Times newspaper to charge for advanced content On Internet - Yahoo, Google, NorthernLight now charging for premium services On Internet - Yahoo, Google, NorthernLight now charging for premium services

Subscription Case Studies Scran – Scottish Cultural Resource Access Network Scran – Scottish Cultural Resource Access Network

Subscription Case Studies SCRAN - costs vary, depending on nature of user/organisation: SCRAN - costs vary, depending on 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 - £400 p.a. * For H.E./F.E. in 2002 – from £100 - £400 p.a. * £20 for life for teachers £20 for life for teachers * subsidised by JISC * subsidised by JISC

Subscription Case Studies Fathom - on-line learning resource Fathom - on-line learning resource

Subscription Case Studies Northern Light (former free Internet search engine) Northern Light (former free Internet search engine)

Licensing To Third Parties Commercial picture libraries Commercial picture libraries Software companies producing education material Software companies producing education material Broadband consortia Broadband consortia Involve licensing arrangement Involve licensing arrangement Marketing, promotion and sales Marketing, promotion and sales Receive percentage of sales Receive percentage of sales

Licensing Examples Bridgeman Bridgeman

Licensing Examples Corbis Corbis

Licensing Examples Hulton Getty Hulton Getty

Licensing Examples Heritage Image Partnership Heritage Image Partnership

Advertising Sympathetic to the site Sympathetic to the site Structured fee basis Structured fee basis Charge annual fees Charge annual fees Care not to “cheapen A site” Care not to “cheapen A site” Need to identify your user base Need to identify your user base Quantify your user numbers Quantify your user numbers

Advertising Examples  MSN

Affiliate Programs Site will feature a product/service Site will feature a product/service Common - books, CD’s Common - books, CD’s Percentage paid per direct sale Percentage paid per direct sale 5% if a general link to vendor 5% 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 up Relatively easy to set up Will need to research the best products Will need to research the best products Can encourage people to leave your site Can encourage people to leave your site

Affiliate Programs - Examples Amazon associates/join/associates.html/ Amazon associates/join/associates.html/ associates/join/associates.html/ associates/join/associates.html/ WH Smith ership=Y WH Smith ership=Y ership=Y ership=Y Internet Bookshop siteno=1&Shop=56 Internet Bookshop siteno=1&Shop=56 siteno=1&Shop=56 siteno=1&Shop=56

Sponsorship Difficult and needs time to generate Difficult and needs time to generate Usually a payment or in kind donation Usually a payment or in kind donation Give back exposure through logo exposure Give back exposure through logo exposure Take care this does not cheapen nor dominate the site Take care this does not cheapen nor dominate the site Don’t let technology providers get free adverts on your site! Don’t let technology providers get free adverts on your site!

Sponsorship - Examples Age Concern Age Concern

Sponsorship – Examples The Tate The Tate

Online Shops Opportunity to sell associated products Opportunity to sell associated products Heavy upfront costs (display, billing and shipping) Heavy upfront costs (display, billing and shipping) Make sure you have a good business case Make sure you have a good business case Combine across consortium/other NOF projects to bring economies of scale Combine across consortium/other NOF projects to bring economies of scale

Online Shops - Examples The Tate The Tate

On-line Shops - Examples The V & A Museum The V & A Museum

On-line Shops - Examples National Gallery National Gallery

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

Partnerships- Examples Visit Britain Visit Britain

Partnerships - examples Kent Tourism Kent Tourism

Conclusions Best to consider multiple streams of funding Best to consider multiple streams of funding Develop detailed business plans Develop detailed business plans Be realistic in revenue forecasts Be realistic in revenue forecasts Identify the IPR with respect to your collection Identify the IPR with respect to your collection Partner wherever possible Partner wherever possible

Questions/queries? Simon Hawkins Simon Hawkins Tel: Tel: Fax: Fax: Further Information Further Information rs/incomegeneration.htm rs/incomegeneration.htm