Value chain analysis examines the processes by which value is added to raw materials by intermediaries, from the point of extraction or creation to the point of consumption. In the “content” value chain, “creators” (authors, composers, musicians) are the suppliers of raw materials; users (readers, listeners, viewers) are the “consumers”.
The ubiquity of the digital network as a medium for content distribution removes nearly all the costs associated with physical distribution. This can lead to disintermediation, which is the elimination of one or more players in the value chain, or alternatively re-intermediation, as new businesses arise to position themselves to take advantage of new opportunities to reconfigure content value. The network also provides opportunities for users to become creators themselves, completing the value circle.
Rightscom's methodology takes a rigorous approach to content value chain analysis by examining both the overt and the hidden contributions made to the value of content in the physical world, as well as exploring how these map onto novel network-based business models. This provides an invaluable tool for understanding the potential of content business models in today’s dynamic and unpredictable environment.