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Business Models‎ > ‎

Revenue models

   Trade  Higher Ed  Reference  STM
Direct/indirect
  • Direct
  • Direct by student
  • Direct by library
  • Direct
Time distribution of payments
  • One-time
  • One-time
  • Recurring annual subscription
  • One-time
Duration of access
  • Unlimited duration
  • 5 month subscription
  • Annual
  • Ownership
Content quantity
  •  Book Content
  • Book content
  • Supplementary interactive content
  • Collection
Usage model
  • Single-user model (to both retail and library) 
  • Single-user model
  • Unlimited by location
  • Unlimited by institutional IP access

Key Points

  • Revenue models are the means by which the publisher will receive revenue for content sold.  Important dimensions of the revenue model include:
    • Direct or indirect payment (indirect could be advertising supported, or sponsored)
    • Time distribution of payments (one-time or recurring payment)
    • Duration of access (one time use, time limited, unlimited duration)
    • Amount of content made available (article, chapter, book, collection, etc.)
    • Usage model (single user, multi-user, multi-seat, etc.)
  • A clear view of the anticipated economics and key drivers are needed differentiate and select among various revenue models.
    • Direct sale model
      • List price
      • Discount
      • Unit volume
    • Ad model
      • Price per click (exposure, etc.)
      • Discount/share
      • Projected volumes (click-throughs, visits, etc.)
  • Dominant revenue models by sector:
    • Trade:  file is sold through retailers and downloaded to the consumer
      • Dedicated devices – Sony and Amazon
      • Multi purpose devices gaining momentum – eReader and Stanza sales
      • PDF, EPUB, DNL, Mobi, LIT formats all holding their own
    • Higher Ed: an online file, sold direct and available for a period of time associated with the course
    • Reference: databases sold to libraries and accessed by patrons
    • STM:  databases sold to libraries and accessed by professionals and students
  • Many more models are being tested.  See Areas of Experimentation for further detail.