- In good times, advertising dollars could be the primary revenue stream of many companies, especially in the digital media world.
- In the tough times, advertising dollars are a revenue stream of many companies, but companies must diversify their revenues beyond ad dollars.
In these tough times, I’m excited about companies who can create new revenue streams or fine tune their existing streams.
In the video game world, game developers and publishers were selling their product on store shelves and their margins were falling fast. One of the main reasons margins were falling is because game development costs were rising due to the next gen consoles (PS3, XBox 360, Wii). We created IGA Worldwide to help game developers/publishers recognize new revenue sources (ad dollars). Other people created virtual goods platforms and in-game messaging systems. Entrepreneurship at it’s finest.
Like I said earlier, I’m excited about the new potential revenue sources that are/will be created for the digital media world.