Revenue streams

Every project needs finance and this comes through streams of revenue. These come with risk, unpredictability and return. (stream- continuous finance)

Things that affect the type of finance that can be used/attracted:

size of organisation
commercial/government

Your (my) project needs money. What are your options?

• Crowdfunding
• Bank loan
• Pitch to other production companies
• Horizontal integration 
• Family/ friend loans
• Private investors
• Sponsorship
• Advertising
• Franchising

There are different revenue streams, which provide a source of revenue for a media project.

Revenue streams= ways for a company to GENERATE revenue income.

Sponsorship: payment for band association with the final product. This could include big companies or smaller, local companies.

Corporate finance: money injected by business convinced the project is a good investment and will provide a good return over a lengthy period of time.

Advertising: can include pop up ads, payment for brand placement within a media product

Franchising: the intellectual property of the original product is licensed to other partners for commercial use like merchandising in return for a fee or share of resulting revenue.

Sponsored content on Vogue

Mother's Day is coming up and the brand can advertise products to potential viewers and they are therefore likely to purchase one of these products due to the endorsement from a trusted trend setting website. In addition, this content looks the same as all the other content on the page so it is disguised sponsorship for the brands. 

Advertisement

Givenchy is being advertised here and throughout the site to reinforce the advertisement to the viewers who are likely to purchase something from the brand.

Sponsored content on the Daily Mail

These ads fit the look and format of all the other articles so it counts as a sponsorship and will likely entice anyone interested in these subjects.

Advertising

This advert on the side is large and therefore prominent on the page for anyone who might be interested in buying this product.

Sponsorship: 

Ad- It increases brand awareness and will help reach a wider audience

Dis- Success isn't guaranteed and the sponsorship might be overlooked

Product placement:

Ad- positive attention and companies will pay for their product to be shown

Dis- Might not be a lot of money due to limited screen time

Crowdfunding:

Ad- able to gain lots of money quickly

Dis- someone might be able to steal your idea if its not patented

Franchise:

Ad- gain the money needed quickly

Dis- difficult to get investors interested

What is crowdfunding

Bank loans are risky and don't always support start-ups, you also need a good credit score.

Crowd funding is lots of mini investors, the internet helped crowd funding to grow and become more accessible as a source of funding.

Not everyone does it for money, some might do it for ethical or moral reasons.

Crowdfunding allows people with the idea to gain the money needed to create this business, it's like a preorder where the investors want the business to succeed and therefore will offer money

Equity funding: putting money in but expecting money over it too.

Very similar to investing in stocks, there is a middle man as well for crowd funding who recommend investments.

Exam question

Identify one type of revenue stream that Cameron could consider to make the website profitable and explain why this might be an effective method.(3)

One method he could use is a sponsorship, the website could include sponsored content to promote the other brand to viewers of the website and in this way benefit the other brand therefore they will be more inclined to pay Cameron's website to include the sponsorship on the page.

Income streams are ways that companies to ACCRUE money via donations.

Crowdfunding- funding from a wide variety of public sources using social media promotion

Enemy of man

The primary way of selling the product was a professional trailer/ pitch.

The directors and actors had committed to the project before being paid and this is a selling point.

They need 250 grand to start the production, they raised 255 grand from over 2000 people.

Gave a brief synopsis of the movie underneath the video.

They wanted to remain authentic and didn't want to be controlled by a big production company.

Cast list, recognised actors to entice investors.

Reward for investing: merchandise(partnering with another company- synergy), limited edition poster, props from the set, concept sketches, storyboards(original pre-production documents), certain amount of investment will allow you to go onto set and meet the cast, pledge $6,500 be named an associate producer, $10,000 get an entire suit of armour, $10,000 co-producer.