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Monetizing Online Content

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Jul 10 2009

Online content providers have always been challenged to find new ways to increase brand traffic, monetize their content and lure advertisers.  And while we are still in the midst of a recession, the news for online content providers is not all bad.  In fact, Forrester Research estimates that US online consumers will spend $4.7B on entertainment content in 2009 alone (Who Pays for Online Content, by Sarah Rotman Epps).

Figuring out the monetization model and actually executing it can be difficult, though.  Should you adopt a "free-mium" model, one in which willing consumers subscribe to premium content while others receive the base service and are subject to ads?  What about a pay-as-you-go model?  Or an advertiser-subsidized model?   Each is difficult to implement on its own, but applying more than one model to support the needs of a varied audience can be highly complex and costly. 

Solutions like CSG Systems' Content Direct are the answer.  As you may know, Quaero was acquired by CSG Systems in December 2008 and I recently had the opportunity to learn more about Content Direct, a platform designed to allow owners, distributors and developers of video content build a better content engagement and monetization experience. 

Essentially, Content Direct allows online media providers to distribute content directly to consumers and provides them with the tools they need to promote and extend their brand, connect with advertisers who want to reach the same target audiences, and continually engage with consumers through social networks.

Content Direct in Use.  A global sports network, which produces and markets its own content and brand across various distribution channels including cable TV and the Internet, wants to build a high quality viewing experience that can be syndicated to multiple domestic and global partners to expand their brand exposure.  The company seeks to expand viewership and the ability to charge customers for premium content for both live events and other achieved content.  The company plans to use multiple monetization models, which ultimately can applied to the syndication partner, content type and end customer level.

The company is leveraging Content Direct to drive their goals forward, and stream live and VOD content on a variety of their branded sites. The monetization model will be tailored to the type of content and end user to maximize appeal and revenue.  Live events will leverage a pay per view commerce model.  Promotional items will be either free or ad supported.  Premium on Demand content can be purchased a la carte or through a subscription.  These models can be extended to syndication partners through revenue share and sponsorship models, thus increasing brand traffic and overall revenue.  Configuration of the monetization models are determined by the content owner.

The results?  The sports network expects to quickly increase the number of revenue-generating syndication partners, increase premium content revenue, and the number of online live premium syndicated events.  And that's just the beginning.

So how does it fit in with the rest of the family?  CSG has long developed products and services that have redefined how providers of information, communication and entertainment services deliver, manage and support customers.  Content Direct is a logical extension; it leverages the company's heritage in managing complex transactions to fill a gap in how video content owners were developing, distributing and servicing video content online.

To learn more about Content Direct, visit their Microsite.

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