Digital Media Business Models

5 min
Rogneda Kniazhina
Technical Writer

#5: Licensing

Of all the digital media revenue models, licensing is one of the most popular on television and video platforms, actually, this is how production companies make money.

How does it work? In simple terms, the production company or house takes on the work of only producing content and licensing it, and then sells it for promotion, advertising and distribution through selected channels, usually cinemas, TV channels and streaming video platforms.

The downside of the model is that the content owner no longer controls how the audience interacts and perceives the end result.

#6: Sponsored/Featured posts

Do not confuse it with sponsorship or donation! Sponsored or featured posts are usually of an advertising nature, but are directly related to the activities of a media company or person. Usually, they are marked with a special plate or hashtag, warning about the presence of native integration in the content.

This digital media revenue model is widely used by both small and large companies, allowing them to naturally build brand loyalty and gradually increase interest in it.

Even though advertising companies are part of the media industry itself, advertising as a digital media business model is also often used. Many people call this method one of the most familiar and effective, others rather follow their customers and strive to offer a service promptly. As mentioned above, the native way of promoting a product is now more appreciated, and therefore native advertising is still at its peak. At the same time, pop-ups and ad blocks on news sites are still collecting their clicks.

Events as a digital media business model seem to be something not obvious, but quite understandable. In fact, this cannot be called an independent way of earning money, but rather a platform for some others: sponsorships, tickets, booths (display), and product sales (publications, subscriptions, branded merchandise). Moreover, this is a great experience to unite like-minded people, rally the ranks of admirers, and acquire new ones.

So, you have a digital media company, or you are just starting one and need advice from professionals and industry gurus? Feel free to contact our managers to find the best solutions for you and choose a monetization model, develop and implement the necessary functionality.

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