Generally, archives have more than just one bottom line and serve multiple purposes. Our clients largely contribute with their archives commercial purposes for profit, but also public interest and/or organisational purposes to preserve history or knowledge. Usually, memories and moments in history are priceless and were the reason for establishing archives in the first place.
However, archives and their stories need to be kept alive. Virtualisation and digitisation support the hard business cases as well as the soft factors and responsibilities to public or organisational stakeholders.
The ROA calculator help to stimulate the though process and business case building for the “hard” factors. This is a simplified simulation and varies on multiple factors starting from the media holding and media types over locations and purpose/mission of your archive. Contact our team to explore your case and how we can help:
| 1) ARCHIVE INFORMATION | Spent so far (linear) | 234000 | Annual Production | ||||||
| of Annual Production used from Archive | |||||||||
| First, please fill some information about your archive holding: | |||||||||
| Number of Tapes | 10000 | Tapes | Annual Cost saving | 18000 | |||||
| Accumulated over how many years: | 15 | The time span from over which the tapes were used and accumulated. | Production Cost Saving | 45000 | |||||
| Tapes Produced per Year: | 666.6667 | Annual Storage Cost | 18000 | ||||||
| How many hours do you produce usually per year? | 100 | How many hours of content do you create? | |||||||
| Cost of Inaction | 150000 | 16000 | |||||||
| Years Selected: | 10 | ||||||||
| Monthly Storage Cost per Tape | 0.15 | Our benchmarking of external warehousing providers and internal cost show a range between $0.08-0.20 depending on conditions, format size and locations. As per SMTPE and manufacturers, tapes should be stored at 17-20 degrees Celcius and 50% humidity. | 5 | 5 years | 153787.6880 | 154000 | |||
| 10 | 10 years | 165693.3188 | 166000 | ||||||
| 15 | 15 years | 176749.6624 | 177000 | ||||||
| 2) HISTORIC ACCUMULATED COST | 20 | 20 years | 186687.1264 | 187000 | |||||
| So far, the physical storage cost without inflation and assuming a linear growth of your archive holding and last 5 years in full volume (as tape manufacturing stopped ca. 5 years ago): | |||||||||
| Estimated Physical Cost just to keep tapes over 20 Years: | 234000 | ||||||||
| 3) FUTURE OPPORTUNITIES: COST REDUCTION & MONETIZATION | |||||||||
| Below as estimation of potential of cost savings and monetization opportunities for further considerations. | |||||||||
| Simulation Period: | 10 years | Please select a period to compared to continuing just a physical archive to calculate the potential opportunity cost, cost savings and monetization. | |||||||
| a) Cost Reduction: Physical Archive Warehousing, Facility and Storage | |||||||||
Just continuing your physical archive would likely cost you the amount indicated below. If that is in you premises, you likely will have to invest also capital investments into replacing air conditioners, facility maintenance etc. On the other side, your physical cost will just deteriorate. Unlike wine, tapes and film are not going to age well. | Inflation | 0.017 | |||||||
| Archive Warehousing/Storage Cost (incl 1.75% Inflation): | 194413.1954 | Years | Storage | ||||||
| 1 | 18000 | ||||||||
| b) Cost Reduction: Production | 2 | 18306 | |||||||
Many of our customers increasingly leverage their archives to reduce production costs. From footage to entire "reflections" back in time using full sections of previous productions. | 3 | 18617.2020 | |||||||
| 4 | 18933.6944 | ||||||||
| Total Archive in minutes at 60 min/Tape: | 600000 | 5 | 19255.5672 | ||||||
| Content from Archive Reusable Internally for Production/Year: | 0.0001 | Estimation of the ratio of archive footage and clips/segments which could be re-used given rights and quality. Adjust this value in view of the line "Average Archive Ratio in Your Production". If you do not produce any content, please change to zero. | 6 | 19582.9119 | |||||
| Cost per Minute of Production Shooting: | 400 | We assume 1 min production cost at $1,000, but Editing, etc. remain required. So we take here 50% for shooting of production. | 7 | 19915.8214 | |||||
| Production Shooting Cost Saving/Year: | 24000 | 8 | 20254.3903 | ||||||
| Average Archive Ratio in Your Production: | 0.01 | This shows you what this equates to in average for your production. So, you should target this ratio per production to achieve the saving. | 9 | 20598.7150 | |||||
| 10 | 20948.8931 | ||||||||
| c) Income Potential: Footage Sales | 11 | 21305.0243 | |||||||
With continuous demand for new content driven by OTTs, VOD and Social Media and original content needs, there is potential to license archive footage for external new productions as long as you hold the rights to your archive. Explore more with our DARS team. | 12 | 21667.2097 | |||||||
| 13 | 22035.5523 | ||||||||
| Licensable Footage with copyright rights: | 0.05 | 14 | 22410.1567 | ||||||
| Sales Ratio: | 0.001 | 15 | 22791.1294 | ||||||
| Licence Revenue per Minute: | 250 | 16 | 23178.5786 | ||||||
| Annual Licence Revenues: | 7500 | 17 | 23572.6144 | ||||||
| 18 | 23973.3488 | ||||||||
| d) Income Potential: Archive Program Sales | 19 | 24380.8958 | |||||||
Many media clients leverage their programs to licence into OTT/VOD and Social Media channels while others feed their legacy content or encore cable channels. Our Content Conforming Services help our clients make the the content directly ready for distribution with dynamic ad preparation, Close Caption, Segmentation and many more, delivering into aggregators and networks. | 20 | 24795.3710 | |||||||
| Number of Full Programs Licensed from Archive: | 1 | Number of Full Programs in your archive which can be re-distributed in new channels. | |||||||
| Licence Revenue per Program: | 30000 | Estimation of the licence revenue for a full program. | 5 years | 93112.4637 | |||||
| Total Program Licence Revenues: | 30000 | 10 years | 194413.1954 | ||||||
| 15 years | 304622.2678 | ||||||||
| e) Cost of Inaction: Increase of Digitization Cost over Time | 20 years | 424523.0763 | |||||||
Postponing the digitization and virtualization of media archives also increases the future cost of digitization. Regardless of inflation, digitization cost for media is affected by increasing cost due to increasing cost to maintain old equipment and treatment processes required. The older the format gets the bigger the factor: As rule of thumb U-Matics cost double of BetaCam, while 1in cost double of U-Matics and 2inch double of 1 inch. Others like D1 or D6 face already higher increases. | Selected | 194413.1954 | |||||||
| Estimated Digitization Cost Increase | 16000 | This estimation varies heavily on the format. Some formats will be more impacted than others. | |||||||
| Past/Current | Digitized | ||||||||
| Physical Cost | -234000 | ||||||||
| 4) TOTAL BENEFIT OPPORTUNITY | Cost Saving: Physical Storage | 194413.1954 | |||||||
A summary based on the simulation above of the total benefits potential from digitizing, virtualizing and utilizing your media archive now: | Cost Saving: Production | 240000 | |||||||
| Simulation Period: | 10 years | Income: Footage Licence | 75000 | ||||||
| Income: Program Sales | 30000 | ||||||||
| a) Cost Savings: Warehousing and Physical Storage | 194413.1954 | Cost of Inaction / Delay | 16000 | ||||||
| b) Cost Savings: Production use of Archives | 240000 | ||||||||
| c) Income Potential: Footage Sales | 75000 | ||||||||
| d) Income Potential: Archive Program Sales | 30000 | ||||||||
| e) Cost of Inaction: Estimated Digitization Cost Increase | 16000 | ||||||||
| TOTAL POTENTIAL RETURN: | 555413.1954 | ||||||||
| vs Physical Storage Cost spend so far: | -234000 | ||||||||
Please note, estimation and simplified simulations. Contact our team to explore your case and how we can help.
Considerations when planning Business Cases
The ROA simulator is based on simplified assumptions and intended to provoke and assist through processes
to support business case considerations. We are happy to advise and help in your consideration process.
Contact our team today to discuss what we can do for you.
COST SAVINGS
- Facility and Warehousing Cost Reduction: Recommendations from manufacturers as well as industry bodies like SMTPE is to maintain low temperature (+17°C) and stable humidity (30% RH) for long term preservation. Film often even lower temperatures, some put in freezers. The facility requirements often more comparable to datacenters and costs associated for long term preservation are tremendous.
- Production Cost Reduction: The production cost per minute usually goes into the tens of thousands of dollars, pounds and euros. This usually includes a mixed resource calculation including location, editing, directing etc. However, if you just take the shooting cost you still are usually in the thousands. Archival content are usually both, curated and edited in the past or new takes on stories with previously unconsidered raw footage. Many our content producing customers aim to increase the proportion by reflections in their stories or going-back-in-history elements.
REVENUE OPPORTUNITIES
- OTT/YouTube & Social Media: We see our customers using the content more and more for OTT and Social Media. It forms a cost effective way to supply your new channels. Mass conforming of content to latest FCC Standards, new Close Caption and other conforming becomes important. Our team helps many media and entertainment clients to realise this fast and cost effective.
- Footage Licencing: The footage industry continues to grow as demand for content grows. Leverage your unique archival content and offer it for new content production. Our DARS platform offers a new market place to offer royalty free and rights managed footage.
- Linear Channels: Traditional linear channels and legacy programs remain a major use case. Many legacy channels with “Encores” or “Gold” content are attracting audiences. The continuous success of game shows or dramas and sitcoms like Friends are timeless.
