18 September 2008 New Media Business Models
Based on a series of YouTube clips called Trent from Punchy this model involves producing free non commercial content. An extension of the brand is then developed, in this case tees and other merchandise. In just three weeks profits from tees have been reported as $15,000. Considering the low production cost, immensely successful.
Perhaps the most common model, and based on the Ask A Ninja series, free content is produced which is sponsored. This award winning series would be pulling in a substantial amount of profit based on high audience numbers. Note they are also using the Punchbowl Model with DVD and book extensions.
This model involves production of free content for a limited time. After a certain period, the content is taken down where it must be paid for to access. This highly targets the innovators and early adopters and usually relies on strong word of mouth. The Ricky Gervais Podcast has reportedly made millions by charging just a small amount with many downloads. This technique was used in the recently successful Dr. Horrible series. Note that in case of The Ricky Gervais Podcast they also used the Ninja Model with the original content being sponsored.
Based on the recent release of Radiohead’s album In Rainbows, content is available for free where consumers have the option to pay. Critics have argued that this was only successful because it had never been done before but this model has also been used successfully by the band Nine Inch Nails. The model usually requires a loyal following. Note that In Rainbows is no longer available, also categorising them in the Gervais Model.
There are two common themes in these four models. The first is remarkable content. None of these can be successful without content that is both highly entertaining and easily spreadable. The second is the lack of a middleman, no record labels, producers or publishers. Instead, the product goes straight from the producer to the consumer.
What models do you think are missing from this list? Do you have any examples that fall into the current four?