How Not to Let Content Sit Idle

Gain Bottom Line Profits

By: CLI Staff

While top line revenues are important, in the end, the questions will always turn to profitability. Whether you are privately owned, a public company, or have investors, discovering revenue streams that bring high-profit margins will always be important. Consider looking at content licensing with the scrutiny of a magnifying glass to identify profitable content reuse opportunities in your organization.

At CLI, we are often asked about the benefits of content licensing for media companies. The answer is always on a case-by-case basis. When we look across our client base, mature licensing programs generally are between high five-figure to seven-figure revenues, with most of it falling to the bottom line. This bottom line is the crucial difference. Content licensing revenue streams have notable profit margins that should not be ignored.

Licensing generally creates one of the highest profit margins in the media industry. Other top line revenues from other streams need to be 2X to 10X that of licensing to compare. The reason lies in the costs of delivering the services around the revenue streams. With content licensing, the bulk of the costs are in the creation of the content – which is budgeted and spent for its original use, whether in print or digital forms. By the time you license the content, the costs are in the storage (for example as an XML delivery) – and commissions if you are using a sales agent.

Here is a checklist to consider for your company’s licensing business plan:

By taking the time to plan and implement a well-structured licensing program, you can unlock a revenue stream with high profit-margins and a long lifespan. Utilize the checklist provided as a roadmap to assess your content’s value, identify potential partners, and ensure you have the technical foundation in place to maximize your returns on content investment. Don’t let your valuable content sit idle – explore the potential of content licensing and watch your bottom line flourish.