June 25, 2009

Eight Models For Monetizing Digital Content

Ad Revenue Softens, And Publishers Seek New Ways To Make Content Pay

by Sarah Rotman Epps

with Mark Mulligan, Erik Hood

Executive Summary (This is a document excerpt)

History repeats itself: As they have in other economic downturns, publishers are considering offering paid content products as a way to wean themselves off the shrinking teat of advertising. In this report, we examine the four qualities that characterize content for which people are willing to pay, and we define eight models for digital content monetization. Whether publishers adopt a "free-mium" model, introduce micropayments, or develop new products to drive incremental revenue, they need a comprehensive strategy that accounts for consumer receptivity, impact on other revenue streams like advertising, and effects on other online and offline products and channels.

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