Media Industry

Business Models

Introduction
For a business to be successful, it needs to raise money, through a
business plan. A business model is a small, less detailed version of the
business that shows how the planned company´s goals will be
achieved if resources and processes are applied to the model, towards
projecting the future financial position of the company.

Content Models

Definition
The material that will be used to attract an audience, hold them, and
influence them to act, usually purchase or view the content offered.
They include the product gendered and specific products the
organization will offer and how the content will draw consumers and
users.

Development
The content model begins with creative people developing ideas for
content that they believe will appeal to a particular audience.

The traditional broadcast network content model is called Least

common denominator programming (LCD). The audience is everyone, so
the content is deigned to appeal to the widest set of interests shared
by the population as a whole and does not exclude anyone.

Many target specialized more narrowly defined niche audiences.

TV and Radio create material for the consumer audience. The print
medium is divided into consumer and industry trade segments, which
always reach audiences.

Online content does it all. Sites may appeal to a broad audience, both
creating content and products: the feature versus product problem.
Which choices are features of a larger overall product? This problem
permeated the development of products in many sectors of the new
digital communication space.

Specialized content is created to appeal to the selected group.

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When a site serves the general public or consumer, it is engaged in
business-to-consumer B2C activity. When the side served business,
then the content reflects a B2B orientation. The content on the site is
apt to be quite different.

There are four kinds of online content types:

1. Information
2. Entertainment
3. Services (Do something for people)
4. Applications (Let people do something)

Widgets are small pieces of software code added to a Web site.

Developers try to present material in a pleasant and visually
stimulating way.

B2B sites don't put much effort in entertainment. B2B efforts are
skewed toward product information and sales. They are increasingly
likely to offer services and applications, selling them outright or
offering them on a per-use or subscription basis.

Online services are products or free offerings such as file sharing,

document and file storage or 24/7 availability price comparison.
Applications are search engines, mapping or payment calculation.

Applications have led to a new class of online content providers, ASPs

(Application service providers). They offer their costumers the ability to
use software to accomplish their objectives. An ASP can provide
anything from quick lookup of stock market ticker symbols to
extended sessions using sophisticated ERP or digital video editing.

Whether they appeal to consumers or businesses, there are there

broad categories of content models:

1A. Content aggregation Models

They focus on the content and pull together enough attractive

material to appeal to the targeted audience of audiences.

The interface is the most important part to the process and the LP is
the most important part of the interface.

Consumer experience model

Content all taken together must provide the consumer a unique and
pleasant experience, not just information, data or service, creating
the best overall experience for the consumer.

A site visitor who is highly satisfied is more willing to donate,

volunteer, use the site, return to ir, recommend it, and leave with a
favorable impression of the organization.

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Bundling and Buckets

The content can come from different sources and reflect many
different types, all together. In order to build traffic, they need to
appeal to many people. One way is to place buckets on a page (an
empty space where dynamically provided material will appear).

Interface Control Model

What is really important is the consumer interface: control the

interface, control the access to the content. User will have a difficult
time finding what they want at all without a well-designed interface.

Control of the interface gives the ability to manipulate the experience

in a number of ways. The interface sets the context for the content:
establishes design and structures the choices a viewer can make. The
interface can add the element of consistency.

An interface that provides navigation is essential for customers on

just about every device.

Mobile phone operators stand to make money at every turn. They can
charge the content providers for reaching customers and charge
customers for accessing content and services.

Screen Real Estate Model

It is a variation of the ICM. The two most valuable parts of the

interface are:

• Splash / LP / HP
• Banners / TS
Google still controls the all-important data glove that surround the
user elements in iGoogle.

Enhanced TV Model

The basic idea is to allow information from multiple screens to be co-

presented on the large display in the home.

Hot spots, clickable areas on the video, allowed viewers to receive more
content, usually text, on the screen, over the video.

User-created model

Many people want to express themselves and create material to share

with others. Content providers following this model find that is does
require some administration.

This type of content requires a great deal more tweaking in digital

television venues such as over-the-aire, cable TV and broadband TV.

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Syndication and Licensing

They are simultaneously a content aggregation strategy, way to build a

bigger audience and a revenue strategy to bring in money.

Full content syndication means that through some contractual

arrangement, content is circulated to a Web site or a link is sent that
allows the content to remain on the site where it is stored.

Control of the contents distribution is generally retained by the

original content creator or owner, although there may be some
modification by the site displaying the content.

1B. Audience aggregation Models

They focus on an audience and create or acquire content that appeals

to a broadly defined audience or to more than one targeted audience.

It begins with strategies for aggregating a particular audience or set of

audiences, then assembling content that will appeal to them.

Horizontal Portals and Destinations

1. A portal is a way station.

The most important feature of a portal is a search engine, with

captures as many listings of Web site content and services as possible.

2. A destination is a place to spend time, a sticky site were people stick

around for a while.

A destination site requires many more services and bits of content

than a site designed only to offer search engine services.

An horizontal portal aggregates content to appeal to as many people

as possible.

Free Service Models

Free content is supported by advertising. Often called a freemium

model, marketers offer some services for free, and pitch the consumer
to upgrade to the premium tier for additional features or services.

1C. Audience Segmentation Models

They focus on an audience and create or acquire content that appeals

to specifically targeted audience, ofter quite narrow.

Vertical Portal and Destination Model

An horizontal portal aggregates content to appeal to as many people

as possible. A vertical portal defines a segment of the potential
audience and then assembles content that relates to this segment.

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Internet Community Models

The means of communication may be an asynchronous message board

or email discussion list, where participants post their comments and
then sign on later to read responses and post again. It might be real-
time chat that lets participants conduct text-based or audio chats.

Communities can form around any sort of interest or concern, and

there are many of them on the Internet. Communication between
people on the site may make up all or a large part of the content.
Bound by some commonality of interests, location or circumstance,
they may seek the same content.

Content sellers may promote offering they think will appeal to the
community through membership or ads placed on the community
site.

Marketing Models

Definition
Explain how customers will find out about the costs and the products
and services and be convicts to view, access, rent or buy them.

What appeal does this particular content hold for a given audience
segment, and why should these people pay attention to it and
consume it?

2A. Spiral Models

The mass media message should direct costumers to a Web site for
several reasons:

• It is an actionable medium
• It can incorporate multiple service components
• If offers an opportunity to collect information about individual
consumers

Once the marketer that the email address, a one-to-one relationship

is stablished with the costumer. Email closes the loop with a thank-
you, followed up by notices and reminders, always sending the person
around the spiral again by directing him or her to a TV or radio
broadcast or print story.

The relationship can be maintained through a fourth medium: social

networks, more if the consumer is an influencer in the particular are
of interest to the content marketer.

It is important to repeat this spiral as quickly and as many times as

possible. It calls for consistency in the marketing message so that
consumers stay engaged with the brand and recognize it across media.

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MM to INT to EMAIL to SM

The power of spiral marketing comes from the fact that if repeated
quickly it creates a Virtuous circle, which leads to a seamless blending
of brand management and customer relationship management CRM.

2B. Viral Models

To crate a campaign where users act as your marketing agent,

communicating your marketing message to their real-life and virtual
friends.

Viral messages can take place in F2F conversations, via email or social
networks. Content sellers find viral marketing especially useful, as
media is often the subject of such exchanges, and people pass on
recommendations to their friends.

Marketers can design material with vital passalong in mind,

encouraging customers to forwards the message to they network of
acquaintances.

2C. Affinity Models

They refer to partnerships between Web sites that attract consumers

who seek similar content. People may share an interest in the same
content, but have quite different reasons for doing so. The common
interest alone may propel them to look for compatible or
complementary content, services and products.

2D. Data Mining

It is a gathering technique for using information about customers to

create targeted value propositions to them. If a marketer know a set
of facts about a past buyer, analyzing that data in detail can provide
guidance for such efforts.

2E. Longitudinal Coto Models

Tries to anticipate over time the array of wants and needs members of
the group have in common, to provide content that interests and
supports them, and to wrap around and embed appropriate commerce
solutions.

It follows the same group over time, perhaps many years, A marketer
using the model must continue to profile consumers at regular
intervals so that the content and commerce opportunities evolve with
the changing customer.

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Distribution Models

Definition
Once content is developed, a distribution model lays out how the
content will get to consumers, in terms of media platforms and
technologies.

The digital environment it is no longer clear how a given content

vehicle will reach consumer.

3A. Windowing Models

Distributing content in stages, using different time frames, media

platforms and prices.

Revenue per viewer is not the only conceivable way to structure

release windows. Strategies for reaching particular audiences or media
platforms might define them.

3B. Cross-Media/Platform Models

They distribute content across more than one medium or to more

than one type of reception device. It may be cited as a marketing and
revenue model as well as a distribution model. Consumers differ in
where they want to enjoy content, and many people use more than
one device.

Revenue per viewer is not the only conceivable way to structure

release windows. Strategies for reaching particular audiences or media
platforms might define them.

The changing content consumption habits of the public mean that

content providers and distributors must now reach their customers
wherever they happen to be, on whatever devices they choose to use.

Creating material for different delivery platforms, network access

speeds, formats, reception devices, and consumer characteristics is
another way of saying that content must be customized, tailored to
address many different environments, conditions, and consumers.

In the digital world, more and more content companies think about
distribution as create once, publish everywhere.

3C. Walled Garden Models

It is a closed network that keeps subscribers within a restricted area.

Inside the garden, the subscriber can choose from a bouquet of
services that are carefully selected, controlled and often created and
operated by the network providing company.

As media become ever more converged, walled gardens are likely to be

more difficult to maintain.

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Revenue Models

Definition
People will pay for content they want. Timeliness and time-to-market
are always important, because information and entertainment
products are highly perishable, like fresh flowers or lettuce. Freshness
is especially critical for financial and business information, and
companies and investors are sometimes willing to pay considerable
sums to get it first.

Revenue models deal with product packaging, pricing, mechanisms

for receiving money (or services), and revenue sharing schemes.

Revenue models in new media markets may have the same name as
those used in traditional venues, but they often mean quite different
things. Pay-per models can cover smaller informational pieces than in
the cable industry, which typically markets whole programs.

4A. Multiple Revenue Stream Model

Bring in money from more than one source.

The value of multiple sources of revenues in media and entertainment

became clear to broadcasters with the rise of the cable industry as
they competed with TV programming providers that could deliver
multiple channels and brought in receipts from monthly
subscriptions.

4B. Ad-Supported Models

Advertisers support content by paying to reach consumers.

On the majority of Internet sites, advertising rates are less certain.

Even though sites deliver customers with specific demographic and
psychological profiles, their behaviors can be monitored and recorded.

Internet Website operators want to be paid for the number of

targeted consumers they bring to the site.

4C. Transactional Pay-per Models

Content consumers pay directly for content.

Pay-per models are attractive to both buyers and sellers, and there are
various Internet services that offer pay-per-download, etc.

Bundling and Tiering

Place multiple content products together and charge for the

package.

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The more popular products cost the most, followed by ever-less-
popular material. It is also possible to create bundles (or packages)
and tiering based on timeliness so that the first buyers pay more than
water buyers.

Big Bite Models

Monetize the content right away from its initial release.

Content owners must monetize the first bytes out of the box and
move on.

4D. Subscription Models

Charge consumers a fee for a period of time – hour, day, month,

year, etc.

A subscription is a revenue scheme where the subscriber pays an

agreed upon amount for specified content for a fixed period of time.

4E. Commerce-supported Revenue Models

Content is a loss leader or free, supported by the sales of other

products.

Content attracts people. Marketers use it to draw customers for other

products, When the material is sold at a price cheaper than the
marketer paid for it or given away for free, it is called a loss leader. The
content was probably sold at a profit to the copyright holder.

4F. Usage Fees

Charge consumers by how much they consume.

4G. Piggyback Models

One hit provides profits to content provider and may support

other less pro table content.

4H. Licensing Fees

Charge content resellers or users a fee for using or consuming the

content, while retaining ownership of the copyright.

4F. Revenue Sharing Models

To make money by increasing demand by sharing customers and

revenue with partners.

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Affiliate Models

Setting up revenue-sharing partnerships with content providers to increase

the total size of the audience.

Cybermediary Models

Internet distributors aggregate links, replacing wholesale distributors in

the physical world.

User Generated Model

Allow consumers to provide content and pay them some part of the revenue
their work brings in.

4F. Data Sale Models

Make money by selling data about consumers and users.

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