Some thoughts about budgeting, funding, the cost structure of an audiovisual archive & new business models

1. BUDGETING & FUNDING
Lecture Preservation & Presentation of the Moving Image
Geert Wissink. 15 oktober 2012
1

2. 2
2

3. PUBLIC VALUE
30

4. PUBLIC VALUE (ACCORDING TO BBC)
• Democratic value - to support active and informed citizenship by
providing trusted, impartial, in-depth news and information that help people
make sense of the world
• Cultural and creative value - to enrich the cultural life of the nation by
enabling the UK’s best creative talents to produce great original work and
provide a broad range of memorable and enjoyable programmes and
events
• Educational value - contribute to education for all by creating a wide
range of accessible programmes and services that feed curiosity and
enable people to learn throughout their lives
• Social and community value - help make the UK a more inclusive
society by providing programmes and services that connect communities,
encourage participation and help build a sense of place and belonging
• Global value - support the UK’s global role by being the world’s most
trusted provider of international news and by showcasing the best of British
culture to a global audience
4
4
Source: Annual Report on Preservation Issues for European Audiovisual Collections – Presto Space Deliverable D-22.8
(2007)

5. PUBLIC VALUE
To have public value, collections should be
1) online; this requires digitisation, encoding and hosting
2) public – because any restriction on access is a
proportionate restriction of interest, visitors to the site – and
ultimately any value, public or commercial, associated with
the site
3) visible – the hardest condition of all.
Cory Doctorrow: “my problem isn’t piracy, it’s obscurity”
5
5

6. SUSTAINING PUBLIC VALUE
Long term thinking should be engrained in every cultural
productive process
but
- Short-term commercial value is at odds with long term
heritage considerations (different views on importance)
One way to keep the archive relevant is to engage with the
(creative) producers at a much earlier stage in the
generation of the audiovisual material
6
6

7. REALLY LONG TERM THINKING
7
7

8. FROM ANALOGUE TO DIGITAL
Text

9. FALLING COST DIGITAL STORAGE
Source: Kurzweil. The Singularity is Near
9
9

10. # HOURS UPLOADED TO YOUTUBE (every hour)
10

11. ORGANIZATIONAL MODELS
30

12. PHASES IN MANAGING COLLECTIONS
Pre-Professional Era
- lay collectors, donators, amateurs
Professional Era
- academic professionals
Text
- profession defined in cognitive and scientific terms
Post-Professional Era
- huge increase in museums
- seperations between artistic and administrative control
- complex bureaucratic institutions
Source: Between the Devil of the Business Model and the Deep Blue Sea of Public Services - Kaija
Kaitavuori
12

13. DEPARTMENT WITHIN LARGER ORGANIZATION
Text

14. INA
Funding: 60 % government funded, 40 % commercial activity
Business model:
1) Broker for other archives (Tour de France,
Text
IOC, TF1) - throught ImediaPro (INA keeps
small handling fee per transaction, partners do fullfillment
2) Distribution agreements
Other organizations store content at INA’s Archive

15. PRELINGER ARCHIVES - 60.000 FILMS
15

16. 2. ORGANIZATION SOUND AND VISION
30
16

17. PEOPLE
200 FTE
50 FTE EXTRA IMAGES
FOR THE
FUTURE
Text

18. ORGANOGRAM SOUND AND VISION

19. MASS DIGITIZATION & PRESERVATION
9 EU TENDERS in last 5 years (more than 220 K costs)
Video Digibeta Film Preservation Perfo-AcetateFilm
Preservation AcetateFilm Preservation NitrateFilm Digitization
SDFilm Digitization HDDigitization of Photographic
Materials*Photo Digitisation ColorEducation Media Platform

20. PROJECT & PROGRAMMES
IT
Digitization
Access (portals)
Exhibition
Sponsorships
Depot
Productions (Documentary)
Sales
Research Projects (Dutch, EU, internal)
Question: what’s the annual budget of Sound and Vision?
20
20

21. INCOME
21

22. INCOME TOP 5
22

23. EXPENDITURE
23

24. CHART COSTS STRUCTURAL FINANCED ACTIVITIES
24

25. FUNDING
30

26. FUNDING CASE: IMAGES FOR THE FUTURE
30

27. 100 YEARS OF CONTENT
27

28. COST BENEFIT ANALYSIS
"The total balance of costs and returns of restoring,
preserving and digitizing audio-visual material (excluding
costs of tax payments) will be between: 20+ and 60+
million’’ (SEO, 2006). The "plus" represents non-
quantifiable indirect effects and social benefits that go
beyond the users’ benefits.
28
28

29. BUSINESS CASE
Total costs: 173 million euro
Cost-Benefits Analysis to support claim
This analysis followed the "Research into Effects on Infrastructure" framework
defined by the Dutch Ministry of Economic Affairs and the Ministry of Transport
(Eigenraam, 2000). This framework shows how the costs and benefits of
infrastructural investments such as roads, railways etc. can be determined. In
addition to ‘hard’ numbers, environmental and other ‘soft’ effects are an intrinsic
part of the analysis. The socio-economic returns of these structural investments
are calculated over a substantial period of time: in the case of Images of the
Future, this period was set at 30 years.
29
29

30. 30
30

31. FROM ANALOGUE TO DIGITAL
31
31

32. FROM ANALOGUE TO DIGITAL
32
32

33. DIGITAL ARCHIVE
33

34. NEW BUSINESS MODELS
30

35. OPEN BUSINESS MODELS ONLINE
1. Subscription model
2. Pay per view/ download (Ximon, Netflix, Amazon)
3. Free + added quality (Prelinger Archives)
4. Freemium (+ service) (Flickr, Linkedin)
5. Advertisement (NY Times)
6. Sponsorships (Memory of the Netherlands, Google
Books)
7. Community engagement (Tribler, Mozilla, Drupal)
35
35

36. BUSINESS MODEL CANVAS
36

37. BUSINESS MODEL CANVAS
37

38. ANALOGUE MODEL
38
38

39. DIGITAL MODEL
39
39

40. NEW REVENUE MODELS
40
40

41. The heritage institution creating the experience
41
41

42. 2. DIGITAL ORIGINAL
The heritage institution as a digital heritage broker
The heritage institution as a digital heritage broker
42

43. 3. DIGITAL CURATOR
The heritage institution providing the context
The heritage institution providing the context
43

44. 4. DIGITAL BRANDING
The heritage institution creating the reputation and building the brand
The heritage institution creating the reputation and building the brand
1. Digital Brand as quality stamp
2. Support for charity
3. Crowd funding
44
44

45. 5. PRODUCT BUNDLE
The heritage institution as the provider of product bundles
The heritage institution as the provider of product bundles
45
45

46. BUSINESS MODELLING THE FUTURE
30
46

47. ASSIGNMENT
1. Think of a future organizational model for the audiovisual
archive
2. Use the business model canvas to write down different
aspects of the new model (capture them on PostIts)
3. We’ll discuss the answers together
47
47

48. CANVAS
48
48

49. FIN!
gwissink@beeldengeluid.nl
twitter: @geertwissink
30

50. PHOTO CREDITS
SOURCE
Collection Netherlands Institute for Source and Vision
LICENSE
Creative Commons Attribution - Share Alike
30