SOLUTIONS FOR MEDIA

LICENSE
TO THRIVE
HOW CONTENT LICENSING SETS THE
STAGE FOR SUCCESS

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SOLUTIONS FOR MEDIA

CONTENT IS KING
In a saturated media landscape, high-quality content can make the difference between surviving and thriving.
To acquire the news, photos, video and data they need, many publishers, broadcasters, websites and other
media companies turn to licensing.

When done well, content licensing helps attract bigger audiences, engage them more deeply and
monetize them successfully. The challenges at the outset include understanding the benefits and
trade-offs of licensing, what content best fits the need, the range of providers and the characteristics
of world-class content. This white paper covers the fundamentals of content licensing so organizations
can ask the right questions, make better decisions and use licensed content more strategically.

WHY BUILDING
LICENSING THE BUSINESS
WORKS CASE

3 4

EXPLORING FINDING
THE PROVIDER HIGH-QUALITY
ECOSYSTEM CONTENT

6 9

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SOLUTIONS FOR MEDIA

WHY
LICENSING
WORKS
Content licensing has always been a part of the media industry because it helps
publishers, broadcasters and many other media companies deliver the content their
audiences want.

Some of the largest news agencies, including the Associated Press and Thomson
Reuters (both started in the mid-19th century) provided news coverage for any
newspaper that could not afford to staff bureaus around the world. Each publication’s
reporters supplied local coverage, with licensed content filling in the gaps. This is
still the case today. A quick glance at any major newspaper or website reveals
bylines from wire services and well-known international publications alongside
locally produced coverage.

In the digital age, content licensing is more varied than

ever. Established newspapers, magazines and television
broadcasters have added online and mobile platforms.
HEAVY CHANCE OF LICENSING
One of the most common examples of licensed
Online news aggregators, blogs and niche news websites
content is local weather. Newspaper readers expect
have multiplied. Even corporations and brands outside of
to see it every day, but only a handful of companies
media are creating content-rich experiences to engage
actually produce it. Accordingly, weather is one of
consumers and build loyalty.
the most widely syndicated pieces of content in
All of these companies need a steady stream of content. media today.
But budgets are tighter than ever, and creating content
is both expensive and resource intensive. To address this
need, media companies rely on a wide variety of content
providers offering text news, opinion and analysis along
with photos, video and data.

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SOLUTIONS FOR MEDIA

BUILDING
THE BUSINESS
CASE
One common misconception about syndication is that
only smaller organizations use it. In fact, most media
companies license content, from the biggest, most TOP 3 BUSINESS BENEFITS
well-known brands to the smallest start-ups. OF CONTENT LICENSING

“Content licensing is popular across the board,”

1. Coverage
said Josh Rucci, global head of content sales for the
Content licensing helps media companies
Bloomberg Content Service. “We work with the
fill gaps in regional or topical coverage in
biggest media brands in the world. Even the largest
an efficient, on-demand manner.
organizations are stretched very thin and need other
ways to add depth and breadth.” 2. Credibility
Media companies that want to develop
Across all media organizations, from small start-ups
a connection with consumers in select
to mega corporations, there are essential content
content areas can use licensing to add
needs that only content licensing can meet.
considerable depth. Licensing is especially
useful for topics that require greater
expertise (such as finance) or access to
talent (such as entertainment).

3. Cost
Extreme financial pressures are driving
Even the largest many media companies to cut costs.
organizations are Content licensing offers a way for them
to deliver the same coverage while
stretched very thin spending less to increase depth
and need other and breadth without adding staff.

ways to add depth

and breadth.

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SOLUTIONS FOR MEDIA

BUILDING
THE BUSINESS
CASE
Beyond these basic drivers, licensing has become an Increase quality advertising inventory
important tool in a business climate characterized by Content licensing plays into monetization efforts as
higher demand for content and sharper competition for well. It enables media companies to add high-quality
every consumer’s attention. Specifically, licensing can advertising inventory, including digital video content
help achieve three common strategic goals. that commands CPMs up to 10 times higher than
CPMs for traditional display ads.1 This is the primary
Increase content reason that one UK-based media company began
Because it is so flexible, licensing can go beyond licensing digital video content from Bloomberg
tactical gap-filling to augment in-house capabilities in 2013.
in more strategic ways. Outlets that specialize in
one topic, such as politics, can use licensing to add
similar depth in related topics, such as world news or “We wanted to publish more video on our websites
economics. Some media companies depend on without having to spend internal resources to
licensing to complement in-house journalism with produce it,” said a video news editor at this firm.
content that is more time-consuming or expensive to “A higher volume of clips means more inventory for
produce, such as photos and video. The spectrum of advertisers. It’s true that more video doesn’t always
opportunities is broad. equate to more views. But if you are delivering
content that is right for your audience, it can be
Grow and engage audiences very effective.”
Media companies can use licensed content to enter
the digital video space more quickly—a proven way to
attract more viewers. Media companies pursuing new Also on the monetization front, licensing makes it
markets benefit from licensing as well. In Hong Kong, easy for media companies to strategically incorporate
for example, a customer of a major news wire relied verticals that advertisers are drawn to—for example,
heavily on licensed content from journalists in China to luxury, technology, business and high-end auto.
launch a site specifically designed to attract Chinese This can also help create a cohesive experience for
readership. Finally, for media companies seeking to desired demographic groups, according to Rucci.
boost traffic through paid channels, licensed content
can help maximize these promotional opportunities. “If you have a business audience in the high-net-worth
With more content available for paid traffic networks, category, for example, adding licensed content about
such as Taboola and Outbrain, media companies luxury is a very natural fit,” he said. “After the audience
can extend their reach more quickly and capture reads about financial strategies, they start reading
more attention. about how to use the profits in the real world. It creates
a seamless transition from commercial interests to
personal interests.”

The business case for licensing is clear. For organizations

that are new to syndication, however, one constant
1. K. Olmstead, A. Mitchell, J. Holcomb, and N. Vogt, “The Digital Video
Advertising Market,” Pew Research Journalism Project, March 2014.
challenge is finding a reliable provider from a virtually
http://www.journalism.org/2014/03/26/the-digital-video-advertising-market/ unlimited number of choices.

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SOLUTIONS FOR MEDIA

EXPLORING
THE PROVIDER
ECOSYSTEM
Licensed content providers fit within three broad categories.

Traditional News Agencies

These agencies, also called wire services, solely produce content
to distribute to subscribers.
Examples Include: > Thomson Reuters > Associated Press
> Deutsche Press-Agentur > Agence France-Pre

Marquee Publishers
This group licenses their content, and includes content providers who license
content from all of the national and regional media properties they own.
Examples Include: > The New York Times >The Washington Post
> Gannett

Content Marketing Publishers

These organizations, the most recent entrants to the marketplace, are aggregators
that organize content from thousands of different sources, serving as “one-stop”
content licensing clearinghouses.
Examples Include: > NewsCred >Sharethrough

The range of choices can be overwhelming

for those licensing content for the first time, BEST OF BOTH WORLDS
according to Dylan Cohen, global head of
Bloomberg occupies a unique position in the
operations and product development for the
content licensing market. The company operates
Bloomberg Content Service.
much like a wire service, providing breaking
“The number one challenge is sifting through coverage of hot-button issues for business, finance
all the options,” Cohen said. “Media companies and other markets. In addition, Bloomberg licenses
need a finite amount of content, but the available a variety of compelling long-form content, much
resources are endless. Each provider meets like a marquee publisher.
certain criteria and each one has different costs.”

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SOLUTIONS FOR MEDIA

EXPLORING THE
PROVIDER ECOSYSTEM
To compare providers, it helps to focus on four key factors:

Coverage
Some providers offer general interest licensed content, while others specialize in
certain topics, regions or markets. Some offer unique content that is available nowhere
else, such as news programs featuring well-known talent. Others offer common
content available from many sources. Licensees need to be aware of the entire
spectrum of choices, especially when evaluating prices.

Credibility
Media companies must make sure that providers have expertise in the subject matter
at hand. For example, a general news provider may not be able to deliver as insightful
an analysis of a multinational merger as one that specializes in finance. Choosing a
credible provider minimizes the risk of republishing content that could undermine the
licensee’s own reputation with key audiences.

Flexibility
How willing is a provider to package content in a variety of ways? Does the provider
have a standard list of licensing packages or offer customizable feeds? Can the
licensee pick and choose from a range of topics to create a unique package of content?
The more choices a provider offers, the easier it is for licensees to find exactly what they
need and avoid paying for content they can’t use. Flexibility also extends to the type of
contracts providers offer, from the common direct purchase model to the less common
exchange of content for certain numbers of unique visitors.

Delivery and tagging

High-quality providers of licensed content typically make it easy for clients to discover
content through intuitive tagging and metadata structures. Great content is useless
if licensees can’t find it when they need it. In addition, providers should have all the
infrastructure in place to deliver licensed content into a licensee’s content management
system (CMS) or publishing system. The provider should understand all the details of
this workflow and be able to guide new licensees through the process.

Focusing on these four factors will help media companies set priorities and ask the right
questions during the search for a provider. With a short-list of choices in hand, the next
and most important step is assessing the actual content being licensed.

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SOLUTIONS FOR MEDIA

EXPLORING THE
PROVIDER ECOSYSTEM
7 Critical Questions for Content Licensing

1. Who is the audience? 2. What is the 3. What is the timeline 4. How much extra
• Geography business objective? for achieving the coverage is needed?
• Industry/market • Monetization objective? • High volume or limited/
• Demographics • Engagement • Clear deadline or targeted
• Entering new markets open-ended • Consistent or variable
• Covering new topics • Days/weeks or • Depth in one focused
• Growing/defending months/years topic
market share • Breadth across a variety
of topics

5. What is the budget 6. What systems are 7. Where can a content

for content? already in place? provider add the most
• High or low • Content management value?
• Investor supported system • General licensing
or revenue dependent • Editorial/publishing guidance
system • Needs assessment
• Workflow/curation tools • Content selection
• Content archive • Price comparison
• Workflow efficiency
• Contracting/rights
management

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SOLUTIONS FOR MEDIA

FINDING
HIGH-QUALITY
CONTENT
When media companies make the decision to use licensed content, the available
choices can seem far more complex and varied than even the number of providers.
Each source of licensed content offers different categories, products and packages.
There are also options for pricing, workflow and rights management to consider.
The ability to distinguish truly strong content from the merely adequate is essential
for any licensee that wants to get maximum value from the budget.

Examining each of the following characteristics can help licensees understand the
range of possibilities in the licensing marketplace and find the high-quality content
that fits well with their underlying strategy and the specifics of their platform.

Product choices
Many types of content are available for syndication, including news stories, photos,
graphics, digital video, reports, analyses and market data. Some providers specialize
in a few of these and others provide a complete portfolio. Within each provider’s
offerings, licensees may be able to choose from a standard menu (e.g., 100 stories
per day) or create a customized bundle (e.g., the top three stories of the day plus
10 photos and 5 video clips).

The number of topics a provider covers can affect content quality. Resources are finite
even in the largest organizations, so the more topics providers cover the less depth
they may be able to provide.

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SOLUTIONS FOR MEDIA

FINDING HIGH-QUALITY
CONTENT
Delivery methods
THE THREE PRICING MODELS In a traditional delivery arrangement, a news agency
OF CONTENT LICENSING delivers a content feed to a client’s publishing system.
From there, an editorial team reviews the available
Flat fee or Subcription Rate content and makes decisions about what stories, photos
Content can be licensed using three pricing models. or videos to use. The licensee may edit the content for
The most straightforward is a flat fee or subscription length or style. The selected pieces of content are then
rate. Usage can be tightly limited, which may make published, broadcast or made live on a website.
sense for a smaller publication, trade magazine or
website. Usage can also be high volume, which is While many media companies still use this approach,
more practical for a daily newspaper that needs to smaller staffs and tighter budgets are leading more of
license multiple stories, photos or video clips for them toward an automated model. Here, the provider
every edition and its primary web property. delivers content directly to the CMS of a publication,
website or mobile app. Very little (if any) editorial
Metering decision-making is involved. The provider automatically
The second model is metering, which requires filters the content according to the licensee’s parameters
licensees to pay on a per-use fee schedule. This and pre-selects what content is added to the feed.
model is more scalable than a flat fee, particularly for
licensees that need a variable amount of coverage. The best providers of licensed content offer a range of
delivery choices, so new users can get the guidance
Revenue Sharing or Royalty Contract they need while established media properties can retain
The third model is a revenue-sharing or royalty editorial control.
contract, in which providers are paid a percentage
of revenue by the media property. These arrangements
are unlikely to move forward unless the licensee is
willing to share a detailed revenue forecast and
performance metrics.

None of these models is objectively better than

another. Choosing the right one depends on the
media company’s needs and budget, as well as
where the company is in its life cycle. Start-up websites
in the beginning stages of funding may have more
success with a royalty model, for example, while it may
be more appropriate for established media properties
to use a predictable flat fee or metering model.

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SOLUTIONS FOR MEDIA

FINDING HIGH-QUALITY
CONTENT
Content rights Compliance
All licensing contracts include language indicating how Playing by the rules helps media companies avoid the
licensees can use the content. But media companies risk of audits, fines and the reputational risk associated
need to be aware of other rights as well, especially in with repeat violations. That being said, compliance for
a rapidly changing media landscape. licensed content is fairly straightforward if licensees
understand the central principles.
Platform rights: A content license is specific to each
platform. Media companies are licensing a news story While editorial usage is expected, commercial usage
or video clip for broadcast or print or a website, not is not. Standard licensing agreements do not account
all three. Using the same content on more than one for use of licensed materials in marketing materials or
platform is typically not allowed. Multi-platform commercial applications, such as TV ads. Related to
agreements, however, often work in the media this, licensees are typically not allowed to remove
company’s favor. For example, they may want to license content from photos that they do not want to promote,
higher-resolution photos for print but lower-resolution such as brand logos.
photos for a website. New platforms are emerging all
the time, from Google Glass to over-the-top broadcast Content that is not text or photos may be subject to
solutions, so an existing rights framework may not be different rules. Video content will likely require a separate
available. Content providers need to be flexible with rights agreement for redistribution, for example. If a
platform rights in order to find the ideal balance licensee is creating a package of video content for
between the media company’s platforms and the syndication, it would need special permission to use
licensing budget. licensed content in that package. Market data has some
of the most complex compliance rules, because the
Archiving rights: These rights refer to how long content owner is not the licensing provider but rather a
licensed content can be stored in an archive. The stock exchange or index. Each of these owners, of which
traditional model allowed for an unlimited “in context” there are hundreds worldwide, places special restrictions
archive of the finished newspaper or television on how its data can be used across various platforms.
broadcast. But in the age of digital properties, there is
no finished product. In general, archive rights for websites As with many of the other factors, the best content
and mobile properties expire after 30 to providers should be open and direct in helping licensees
90 days. This can raise the risk of broken links or bad understand what the rules are for any kind of content,
search results, so licensees may need to adjust their what the risks of noncompliance are and how to integrate
systems to remove licensed content from their archives compliance checks into everyday workflow.
automatically. In addition, works submitted to professional
or academic databases, such as Lexis Nexis, may need
to have licensed content stripped out. Content providers
want those searching for a specific story, photo or video
to discover it from the original source.

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SOLUTIONS FOR MEDIA

FINDING HIGH-QUALITY
CONTENT
Licensing Delivers Strategic Value
Licensing content provides real, measurable value for traditional, broadcast and online
news organizations and other media companies that are seeking to build audiences,
increase engagement and monetize more consistently.

“Content licensing is an ever-evolving environment,” said Cohen. “That applies just

as much to the needs of media companies as it does to the content, platforms and
services available from providers. Every licensee should expect content providers to
understand their business and help them navigate these quickly changing dynamics.”

Choosing the right provider is important. Look for a provider that not only has a wide
selection of high-quality content but is easy to work with and fully committed to
guiding media companies—especially first-time participants in the content licensing
marketplace—through the important decision points.

Content licensing is an
HIGH VALUE

ever-evolving environment.
Every licensee should expect
content providers to understand
their business and help them
navigate these quickly
HIGH QUALITY changing dynamics.

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SOLUTIONS FOR MEDIA

GET STARTED TODAY

With the right provider, licensing content can be simple and powerful.
The Bloomberg Content Service licenses high-quality video, news, photos
and data covering topics attractive to audiences and advertisers.

To learn more, visit bloomberg.com/content-service.

The data included in these materials are for illustrative purposes only.
©2015 Bloomberg L.P. All rights reserved. S561253973 0215

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