What are Digital Assets?
What’s a digital asset? Digital assets or content are anything that can be consumed via a handheld device or online. This takes many forms and is as varied as a song (Apple iTunes), ring tone for your phone, streaming video or movies, online TV (MobiTV or www.joost.com), online video game play via broadband enabled gaming counsels (Nintendo, PlayStation 3, XBOX 360), premium content, online sites that allow the creation of digital content like an online karaoke site (www.ksolo.com), streaming downloads of any type (Video on Demand or software) etc. As you can see, the list continues to grow and the time for digital media/assets has never been more exciting than right now!
So, the question becomes…how does one monetize their digital assets?
Rules of making money in digital assets
1) Have the right to sell the asset
a. Sounds like a no-brainer, but it isn’t
b. And if you do have the rights, consider DRM implications (better covered in a later article)
2) Provide an intuitive experience
a. easy to use site that is more about function than form…functionality is king
b. plan for and execute an up sell and cross sell capability
c. enable robust search and ensure you are keeping your library of search terms active and growing
d. subscription models for recurring revenue streams with varying tiers of content with transparent pricing to the online Guest
e. Pay Per View that allows content to be consumed in eight (8) hour increments vs. standard twenty-four (24) hour periods. This way Guests can enjoy the content just at work or home…because the last eight (8) hours most people sleep and don’t see total value in this offer strategy.
f. In other words, give the Guest ‘options’ to enjoy your brand or content in a way that is relevant and appealing to the Guest
3) Determine your business model, and there are lots of interesting ones out there being driven by web 2.0 initiatives (www.amiestreet.com whereby the market value drives the price of the asset as it is increasingly consumed in a true demand driven experience...as songs start out at zero and go up in price as they become more popular)
4) Consider a dual revenue stream. Ad based revenue from your site for those who are willing to experience advertising for free content plus paid content for Guests who don’t mind paying to avoid ad placements. Again…give the Guest options.
5) Enable more than debit/credit cards (localized payments) – International business demands localized payment methods to be successful. Accepting only debit and credit are simply putting handcuffs on your own online initiatives and reducing your online revenue potential.
6) Accept Micro Payments as appropriate – If you deal in smaller sales amounts (less than $5.00 traditionally), make sure your payment processor has the ability to aggregate payments to help you be more profitable, so the revenue is not eaten up by transaction costs.
For each category of content listed at the beginning of this article, there are best practices to help monetize the digital assets. Additionally, there are online best practices from other verticals where the sales process is far more complex (travel for example) that could aid the conversion for the digital business.
Adding to these wonderful opportunities are the exciting developments of web 2.0 and social networking technologies that are only beginning to scratch the surface of how we all interact with one another online. And lastly, because web 2.0 has created so many arguments about ‘what it is, or how it is defined,’ I leave you with my own personal, and partial, definition of web 2.0.
Web 2.0 is a 15 year old girl who waits until her family leaves each day before she takes her $2 microphone and records music on an online karaoke site (www.ksolo.com). She waits because she is embarrassed and doesn’t think she sounds that great. Through those recordings she is discovered and given a record contract…from the safety of her home.
Web 2.0 is removing the filters of society that have at times kept individuals of talent from realizing their dreams…by providing an avenue to express their talent and have it be experienced in new and very exciting ways.
Web 2.0 isn’t simply encapsulated by the term ‘user generated content’ to me, but rather an opportunity to express and fulfill dreams.