In this Chronicle of Higher Ed piece, Anant Agarwal explained the two flavors of edX' business model. In the 'supported' model the client institutions pays $250k up front and then 30% of all student fees for the course over that amount. In the second, the 'self-service' model the upfront fee is $50k with the client institution surrendering 50% of all student fees beyond that.
Imagine that model in the context of the music industry.
EMI owns the rights to a well know band like Pink Floyd. It decides to sell "Dark Side of the Moon" (1973) to stores like Amazon or WalMart. It charges them half the initial cost of making the album (cost of the studio time, fixed fees to the engineers and producers, etc) and then takes 30% of gross sales thereafter. Or on a track by track basis, charging 10% of the album's initial recording cost, and then taking 50% of grow sales for each track sold.
Now that's a deal most recording companies would love to get.
No comments:
Post a Comment