1. Income Generation And Partnerships Simon Hawkins

2. Agenda Income Generating Schemes Income Generating Schemes Partnerships & Associations Partnerships & Associations

3. 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

4. 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

5. 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

6. 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

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

8. 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

9. 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

10. Potential audiences – Education For more information, see: www.dfee.gov.uk/standardsfund/ngfldevo.html For more information, see: www.dfee.gov.uk/standardsfund/ngfldevo.html www.dfee.gov.uk/standardsfund/ngfldevo.html Also see the following pages concerning the Regional Broadband Consortia: www.dfee.gov.uk/standardsfund/ngflrbcs.html Also see the following pages concerning the Regional Broadband Consortia: www.dfee.gov.uk/standardsfund/ngflrbcs.html www.dfee.gov.uk/standardsfund/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. To access these, you may need to visit www.dfee.gov.uk/standardsfund/index.cfm and use the login name 'guest' with no password. www.dfee.gov.uk/standardsfund/index.cfm

11. 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

12. Sales Online Case Studies Collage (Corporation of London) Collage (Corporation of London) http://collage.nhil.com/ http://collage.nhil.com/http://collage.nhil.com/

13. 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£2.50 10x8 inches£8.50£1.50£2.50 12x10 inches£12.50£1.50£2.50 18.3 x 12.4 inches £17.50£2.75£3.75

14. Sales Online Case Studies Compass (British Museum) Compass (British Museum) http://www.british-museum.ac.uk http://www.british-museum.ac.uk http://www.british-museum.ac.uk

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

16. 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

17. Subscription Case Studies Scran – Scottish Cultural Resource Access Network Scran – Scottish Cultural Resource Access Network http://www.scran.ac.uk

18. 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

19. Subscription Case Studies Fathom - on-line learning resource Fathom - on-line learning resource http://www.fathom.com/ http://www.fathom.com/ http://www.fathom.com/

20. Subscription Case Studies Northern Light (former free Internet search engine) http://www.northernlight.com Northern Light (former free Internet search engine) http://www.northernlight.com http://www.northernlight.com

21. 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

22. Licensing Examples Bridgeman http://www.bridgeman.co.uk Bridgeman http://www.bridgeman.co.uk http://www.bridgeman.co.uk

23. Licensing Examples Corbis http://www.corbis.com Corbis http://www.corbis.com http://www.corbis.com

24. Licensing Examples Hulton Getty Hulton Getty http://search.hultongetty.com/

25. Licensing Examples Heritage Image Partnership Heritage Image Partnership http://www.heritage-images.com/

26. 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

27. Advertising Examples  MSN http://www.msn.co.uk http://www.msn.co.uk

28. 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

29. Affiliate Programs - Examples Amazon http://www.amazon.co.uk/exec/obidos/subst/ associates/join/associates.html/ Amazon http://www.amazon.co.uk/exec/obidos/subst/ associates/join/associates.html/ http://www.amazon.co.uk/exec/obidos/subst/ associates/join/associates.html/ http://www.amazon.co.uk/exec/obidos/subst/ associates/join/associates.html/ WH Smith http://www.whsmith.co.uk/whs/Go.ASP?partn ership=Y WH Smith http://www.whsmith.co.uk/whs/Go.ASP?partn ership=Y http://www.whsmith.co.uk/whs/Go.ASP?partn ership=Y http://www.whsmith.co.uk/whs/Go.ASP?partn ership=Y Internet Bookshop http://www.bookshop.co.uk/par/parpge.asp? siteno=1&Shop=56 Internet Bookshop http://www.bookshop.co.uk/par/parpge.asp? siteno=1&Shop=56 http://www.bookshop.co.uk/par/parpge.asp? siteno=1&Shop=56 http://www.bookshop.co.uk/par/parpge.asp? siteno=1&Shop=56

30. 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!

31. Sponsorship - Examples Age Concern Age Concern http://www.ageconcern.co.uk http://www.ageconcern.co.uk http://www.ageconcern.co.uk

32. Sponsorship – Examples The Tate The Tate www.tate.org.uk

33. 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

34. Online Shops - Examples The Tate The Tate http://www.tate.org.uk/shop/browse.htm

35. On-line Shops - Examples The V & A Museum The V & A Museum http://www.vandashop.co.uk/

36. On-line Shops - Examples National Gallery National Gallery http://www.nationalgallery.co.uk/

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

38. Partnerships- Examples Visit Britain Visit Britain http://www.visitbritain.com/

39. Partnerships - examples Kent Tourism Kent Tourism http://www.kenttourism.co.uk/en/index.asp

40. 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

41. Questions/queries? Simon Hawkins Simon Hawkins Simon@harvardcs.com Simon@harvardcs.com@harvardcs.com Tel: 01622 812347 Tel: 01622 812347 Fax: 01273 471929 Fax: 01273 471929 Further Information Further Information http://www.ukoln.ac.uk/nof/support/help/pape rs/incomegeneration.htm http://www.ukoln.ac.uk/nof/support/help/pape rs/incomegeneration.htm