New Solutions Enable Content Creators to Profit From Their Knowledge
CARDIFF, United Kingdom, June 13 – Websites run by individuals are set to generate more than £100 million in paid content revenue over the next five years, according to a new analysis by subscription website development experts SubHub.
Already one category expert is using SubHub’s ICM (Individual Content Monetisation) engine to operate a website that will generate more than £1,000,000 in subscription revenue over the next 3-5 years. Numerous other experts, authors, journalists and specialty publishers are taking advantage of ICM and other solutions to market their content to audiences directly.
“The internet has provided a way for content owners to reach audiences directly without the costs of print, broadcast or distribution,” said Evan Rudowski, co-founder and director of SubHub. “However, only recently have the tools emerged to enable content originators – authors, experts, consultants, personalities – to easily create and sell their content over the web, bypassing the big media owners and instead keeping the lion’s share of revenues for themselves.”
Specialised content niches typically cannot attract the kind of scale necessary to successfully drive advertising revenues. Audiences and traffic volumes are too small. Yet on a subscription basis an audience of several hundred to several thousand subscribers can form the basis of a highly profitable publishing endeavour.
“Self-publishing tools, such as blogging software, abound on the web but without the membership and revenue capabilities necessary to run a fee-based website,” said Miles Galliford, SubHub co-founder and director. “With this in mind SubHub in 2004 launched its ICM engine to provide an integrated paid content publishing solution on an affordable, turnkey basis to any individual.”
SubHub’s analysis projects that the paid content market (subscriptions and paid downloads) will be worth at least £2 billion over the next five years in the United Kingdom alone. The largest share of this will be attributable to entertainment content (music and video downloads). Large publishers will capture the lion’s share of the remainder.
However, at least £100 million of this £2 billion total will go to individuals who create content focused on areas of special interest for highly motivated consumer and professional audiences. These audiences are prepared to pay for content that delivers tangible value to them – helping them to further a hobby, interest, or personal or professional goal.
SubHub’s roster of clients includes some key examples of this newly empowered individual publisher. These include Jancis Robinson, the wine expert; Alison Jane Reid, the fashion and celebrity journalist; and Robert Ashton, the well-known entrepreneurial guru. Other sites using SubHub’s ICM engine include bookbytes.com, which provides downloadable summaries of leading business books. By the end of 2006 SubHub anticipates that it will have launched more than 50 websites in collaboration with such individual experts and niche publishers.
Further confirming the move from big media to personal publishing is SubHub’s recent deal with Nic Laight, former managing director of Fleet Street Publications, the leading publisher of personal finance newsletters. Now working independently, Laight plans to leverage SubHub’s ICM solution to launch a series of paid websites focusing on the same personal finance niche.
“Our experience confirms our recent analysis,” Galliford continued. “It is now increasingly possible for individuals to profit from their knowledge and to make money marketing their expertise over the web. The tools finally exist for content creators to control the distribution of their own content and to earn money from it directly.”
SubHub Ltd., headquartered in Cardiff, Wales, is an award-winning provider of subscription website and paid content solutions. SubHub was founded by media industry executives Evan Rudowski, former managing director of Excite Europe, and Miles Galliford, formerly a senior internet executive at British Telecommunications plc. SubHub is privately held under joint British and American ownership and has raised more than $1 million in funding from sources including the Welsh Assembly government, HSBC Bank and private investors.
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