Business Model

Business Model
What is the Business Model in
Transmedia / Cross-media / Multi-platform / Digital
(pick the buzzword of your choice)
Content production?
Business Model
• Paid by the Audience
• Paid by Advertisers
Paid by Advertisers
Ad breaks.
Product placement.
Ad Funded programming.
Paid by the Audience
Live events (ticket sales).
Paid downloads (music, eBooks, videos).
Apps and Mobile Games.
Premium SMS / Calls.
Paid VoD.
Products (Books, DVDs, Toys, etc).
Financing Models
Financing Model vs Business Model
Why the established model works?
• Film and TV Broadcasters and Distributors are funders
and marketers of the content produced, providing MGs
against expectations of revenues on a territory by
territory basis.
• Tax Credits and soft money is granted to producers
based on distributors validation or Cultural merit of the
creative work.
• Local or European content quotas increase the demand
for local produced or co-produced content.
Why it doesn’t work for Cross-media?
New on-line platforms (Youtube,
Vimeo, Hulu, Facebook) and digital
stores (App Store, iTunes, Amazon)
allow producers to reach their clients
on a global scale but (usually) don’t
provide advances on revenues that
could be used to finance production.
So, how can I finance my project?
Extending a TV/Film property
Mobile Apps
• It’s still rare to find funding entities that will
finance the full cross-media project.
• Funding is still organized on a platform by
platform basis.
• Co-productions between producers from
different territories and with companies with
different skills are necessary to overcome
funding limitations.
• Producers should prepare their sales pitches
accordingly to this reality.
The Funding Model
• New sources of funding are available for Feature Film / TV
producers that want to extend their movies to other
Media Interactive (mainly apps and games)
Wallimage Interactive (Belgium)
Creative Scotland
Northern Ireland Screen
UK (several regional funds).
France (CNC)
Germany (Regional funds and Game funds)
Canada (several funds and regional funds and TAX Credits)
Hi5 for Kids.
The Funding Model
• These national and regional funds allow producers to
partner (a new type of co-productions) with Game
Developers and Digital Agencies to develop and create
Games, Apps, Digital content that complements their
• Funding can range from a 20k to 200k.
• Additional “marketing” funding can be obtained to
promote the movie/TV series.
• Additional content can be given away for free to
generate buzz or sold to audiences.
The New Commissioners
• On-line VoD services are putting advances, commissioning
or licensing content for their platforms: Hulu, Youtube,
Netflix, Yahoo, Amazon, etc.
• In Europe, Youtube already gave advances to +60
production companies to develop professional made
Youtube Channels.
• Advertisers and media agencies are also commissioning
Web series to communicate their brand values.
• A few broadcasters and some existing Film/TV funds are
starting to fund Web series as experimental productions.
Videogame Finance
VC / Private Equity
National and regional game development funds
Digital publishers
Media Desk Denmark created a document with
sources of funding available in Europe for Games and
other forms of digital content =>
Audience = Revenues
With an existing property and a
community, producers are able to
attract better licensing deals from
traditional gatekeepers, as also
advertising revenues from agents,
brokers (eg: Youtube Partners
program) or directly negotiating
with media agencies.
Our Transmedia Plan
• Web/Mobile as your first media.
• Seed it with content and grow the fan base.
• Social Media creates engagement and allows
user participation.
• Promote it on-line and off-line. Printed media
and Radio helps the marketing of the Web
• After initial success, expand the property to
other off-line medias: TV, Film, Books, Events,
Licensed products, games, etc.
• Sell the format internationally.
The Funding Model
Development funding (e.g. Media Interactive).
Product placement / Sponsorship.
R&D Funding – Prototyping.
The Funding Model

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