Online entertainers are breaking into new sources of revenue. Previously, majority of the revenues came
from advertising on YouTube. Revenue has
since diversified into merchandise, live events, subscription video on-demand,
content royalties, etc. For example, provider
of witty video game commentator Rooster Teeth hosts multiple day gaming
conventions, web
comic Penny Arcade has spun its original business into new series, a
merchandise line and its own gaming convention and Penny Arcade Expo. Podcast
network Maximum Fun hosts its convention MaxFunCon at least twice a year on the
East and West coasts.
These online content creators are tapping into the long tail
and developing a large following. Once sequestered to YouTube and other web spaces, online entertainers
like Rooster Teeth are breaking into new sources of revenue, and events, which
can draw thousands of loyal fans, are becoming a key component of their growing
franchises. Today, as Rooster Teeth continues to branch out,
advertising makes up 31% of the company’s revenue. Less than half of that comes
from YouTube ads; the rest comes from sponsorship relationships. This is a great example of companies /
entrepreneurs using digital media to promote themselves. Once they reach a certain number of targeted
followers, their brand will take off and there are various ways to
monetize.
https://www.wsj.com/articles/online-entertainment-companies-discover-the-pros-of-cons-1501234204
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