Revenue Streams

What financial options are there for you?

• Every project needs finance and this come through streams of revenue. These come with risk, unpredictability and return. 
• Things that affect the type of finance that can be used/attracted-
• Size of organisation 
• Commercial/Government 

Sponsorship- payment for brand association with the final product exp. air bnb sponsored the olympics. the emirates invested a large amount of money and resulted in the stadium being named after the emirates. 

Advantages- 

• Cross promotion, the sponsor can promote your product and you can promote their brand. Gives a good reputation to the film as they are working with a reliable brand. 
• They help to fund a lot of the project.

Disadvantage -

• You do not have full control of your product, the sponsorships may suede you away from what you are wanting to produce. 
• You may have a sponsor overload, no focus on a specific brand and no one pays as much attention to each brand as they would as if it was an indivisual sponsorship. 

Crowd funding- funding from a wide variety of public sources using social media promotion  exp. gofundme 

Advantages- 

• As it is online,  it is easily accessible and therefore appeals to a mass audience, so more people will fund the film 
• Using social media to get exposure and perhaps feedback. 
• Different amounts of money from a variety of different people 
• No risk as the company, as you are gaining money, rather than loosing it. 
• As it's online it can be a valuable form of marketing and result in media attention

Disadvantages- 

• May take a long time to reach the target amount of money.
• It is very uncertain and risky, as you might not get the money on time, you may not even get the money. 
• If you don't reach the funding, any finance earned will have to be returned back to the investors. 

Advertising- payment for brand placement within a media product 

Advantages- 

• Cross promotion- The product promotes the brand, and therefore the brand will gain more money as they may like the actor using the product, and want it themselves. As the brand promotes the product, the people associated with the brand may want to watch the film which increases the films profit and gains a mass audience. 
• The more exposure the product has, more people are inclined to buy it, and therefore increases the funding they recieve. 

Disadvantages- 

• We skip adverts now as there are so many, we become passive audiences.
•  Is not as effective as it used to be. 

Corporate finance- money injected by business convinced the project is a good investment and will provide a good return over a lengthy period of time. exp. emirates is a global corporation that sponsors arsenals stadium.

Advantages-

• If the product sells well, it will gain a bigger profit. 

Disadvantages-

• As it is over a lengthy period of time, it will take a long time to gain profit
• You need to be a well established brand that has the funding to do the product. 

Franchising-he intellectual property of the original product is licensed to other partners for commercial use like merchandising in return for a fee or share of resulting revenue.  exp. happy meals in mcdonalds

Advantages- 

• If the film is very successful, a large amount of the money they gain will be from franchising. 

Disadvantages- 

• If the product is not successful, they will not gain any profit from it and will loose money.