iOver the next several months, we will share eight Publishing Law Tips on the subsidiary rights of publishers in different forms and media, frequently referred to as "content monetization."
Content Monetization Tip #1: Maximizing Your Bottom Line, An Introduction
Authors and publishers work hard and expend precious time and financial investment to write, acquire, develop, manufacture, market and sell quality books.
Authors and publishers are entrepreneurs at heart. Once a manuscript has been acquired, authors and publishers are well suited to determine how the content can be sold in different forms, and customized or branded for special channels or customers.
Additional revenues are welcomed by both sides. For an author, it will generate additional royalty income. For the publisher, it will help to offset costs and may make a book that is initially marginally profitable, much more profitable.
The definition of content monetization includes what publishers have always considered as "subsidiary rights," which, as part of our definition, includes "all" rights other than print publishing rights. This also includes the publisher's use of content in an online environment.
The primary objective of content monetization is to leverage publishing assets in different ways; – stated simply, don't put all of your eggs in one basket. Think outside the box! You can increase revenue streams from multiple sources while managing associated costs and projects. Some projects are successful, some are not, but success is less likely if you do not try different projects.
A publisher and author should start the planning process at the time the publishing contract for a new title is being negotiated. Negotiations should include the scope of the grant of rights clause and the royalty clause.
Analyze the primary and supplemental markets and territories. What subsidiary rights are essential for the success of the project? What is the financial outlook for the title and what can content monetization (a robust exercise of subsidiary rights) do for enhancing revenue, royalty income and royalties?
As the new project proceeds, the publisher should develop a working plan for content monetization.
Subsequent articles in this 8-part series will discuss specific business and legal issues dealing with the implementation and operation of a content monetization strategy. We will also discuss specific content monetization projects including foreign translations, electronic and print content aggregation/disaggregation, audio books, custom sponsorship publishing, premiums, co-publishing and merchandising.
Lloyd L. Rich also contributed to this article.
