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Re: [newtech-1] Digital Video Distribution

From: Isaac
Sent on: Wednesday, September 10, 2008 9:06 AM
I don't believe there's much in the way of uniformity in the market for this.   Much is dependent on the source of the content and perceived professional level of the production.    Some deals are based on revshare for ad-revenue, others are licensed more traditionally.  In practice, there's everything in between those two models and each have variants based on the constraints imposed by technology and existing contracts on the content.  

* High quality content & production:  content providers will want to mimic business models related to tv, cable, and cinema.   As quality goes up, so does price and the length of the termsheet for distribution partners.   Distribution partners are sophisticated, know their demographic, and willing to pay reasonable money to license quality content.  Playing matchmaker between these two forces is a balancing act between the dist. partner seeking first-run or exclusive rights to the content, and the content-provider seeking the widest audience and the highest pay-out for the least restrictive licensing term.   Distribution partners will have their own inhouse or licensed ad networks / pay-to-play mechanisms and wish to keep that system independent of the content. 

* Lower quality content and production:  content providers want as much distribution as possible to secure nominal revenue.  Because of the low production value, acquisition cost is near or at zero money.  These deals tend to lean on revshare agreements for ads.   Distribution partners will push for the shortest, simplest term-sheet possible and will most likely wish to leverage your ability to offer a combined content/advertisement package to monetize it.   

hope that helps a little. 

cheers,
-isaac  

(DramaFactory.com, yet another stillborn / delayed project from techorb)



On Tue, Sep 9, 2008 at 10:01 PM, Baba <[address removed]> wrote:
Anyone on the list who is involved with pricing models for Digital Video distribution.
Looking for help in defining a revenue model that is fair to all parties involved and I am not sure I am able to understand the way current deals are structured. IF you can be of help contact me offline.
Regards
baba

--
"Wise men talk because they have something to say; fools, because they have to say something." Plato




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