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Revenue models in the media sector

Companies in the media industry (media companies) can generate income with the products they create not only in one market, but in several markets. Classic sales markets are the recipient, advertising and content markets. Further markets, e.g. for customer data, are emerging. At the same time, different revenue concepts are conceivable in the various markets. The combination of markets and revenue concepts results in a broad spectrum of revenue models. These can be described according to the type of revenue concept using the following dimensions:

  • Revenue concept content: The object is the sale of informative or entertaining media content. On the one hand, the recipients come into consideration as buyers. Paid print media or pay TV are examples of this revenue model. In the case of pay-TV, all variants between video on demand or pay-per-view on the one hand and classic subscription television with usage-independent remuneration on the other hand are conceivable as a specific form of revenue. Other media companies come into question as additional buyers of content (content market). Existing content can be resold to them by means of multiple use.
  • Commerce revenue concept: Based on the sale of marketable products or services that are related to the actual editorial media content. Revenue can be generated, for example, by selling merchandising items to recipients, advertising space to advertisers or customer data to companies in other industries that use this information, for example, for the development of new products or services.
  • Connection revenue concept: Generating revenue by offering interaction. The Connection revenue model aims to increase the involvement and connection of the recipients with the respective media product. A typical example are competitions on television, in which the viewer can take part by calling a chargeable telephone number, or teleshopping channels (transaction television). The revenues for the TV broadcaster result from shares in the communication costs of the recipients and from commissions. Further examples are the offer of fee-based advice hotlines or fee-based access to databases.
  • Revenue Concept Context: Offer an orientation function in the media offer. The revenue model Context is aimed at the recipients who should be given a better overview of the respective media offer by using, for example, electronic program guides (EPG) or paid information portals on the Internet.
    Revenue concepts in the media sector