Event Sponsorship and Revenue

This essay discusses innovative efforts in generating revenue through event sponsorship. It explores the concept of Freemium service introduced by Netflix and its impact on revenue generation. The essay also examines value-based pricing and public-private partnerships as strategies for revenue generation. The case study focuses on Netflix's expansion into Australia and its use of innovative revenue generation methods.

Running head: EVENT SPONSORSHIP AND REVENUE
EVENT SPONSORSHIP AND REVENUE
Name of the Student
Name of the University
Author Note

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Introduction
In this essay, the main purpose or objective will be identifying an innovative effort of
generating revenue. There are many ways of generating revenues from the respective area,
like the revenue from sales, advertising, sponsorship, and many more. But something creative
will be discussed here, taking into account the Freemium service introduced in Australia,
introduced by Netflix. Netflix is an online streaming over the top service, which provides
online streaming of a range of television programs and films, including the ones which are
produced by in-house. It was founded in the year of 1997, and based in Los Gatos, California.
The inline streaming is provided to almost 190 countries by the public limited company,
which is founded by Reed Hastings, who is the current Chairman and CEO of the company,
and Marc Randolph, who was the first CEO of Netflix. Ted Sarandos is the Chief Content
Officer of Netflix, which is from the entertainment and mass media industry. The revenue
earned by the company is US$ 16 billion approximately. The Alexa ranking of the company
is 24 as of April 2019, and the total number of users is 154 million worldwide, among which
the paid subscribers is 148 million worldwide (Euchner 2016).
Innovative Revenue Generating Effort
Revenue generation is the major target of any kind of organization, whether they are
into retail sector, or event management sector or any kind of other sector. The company of
Netflix also have some plans for revenue earning, but through some innovative way. They are
providing a service called Freemium, through which the subscribers can view the online
streaming of the programs streamed on the platform for absolutely free. After that, they have
to subscribe themselves for a particular span of time to view the programs. Thus, it can be
said that the limited access is just for a month, just to attract the people to view the films and
programs streamed through online (Gomez-Uribe and Hunt 2016). This is done to generate

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the curiosity and increase it to a level where the free viewers will automatically become
subscribed members, to enjoy different kind of shows and films over the platform, which
actually contains a lot of entertainment. Freemium can be termed as a marketing tool. Some
companies use it as a productive tool to get people on board, by the help of paid
memberships, may be at a discounted rate for a longer period of time. They are planning to
launch their services in Australia, and have taken help by the help of two methods of
innovative way of revenue generation, which is discussed below. As Netflix is one of the
biggest streaming site for television ad movie series, which is paid-subscription based, it can
be said that the Netflix segment, or the users of the Netflix is mainly based on
psychographics and not on demographics. Mainly three things are creating the differences.
They are affordable or economical price, original or true content of the shows and programs
and accessibility. Employment of analysis of big data is used in the production of the content
in original in a cost-effective way. The business model is constructive, and the subscriber
base is ever increasing for the online streaming company (Euchner and Ganguly 2014).
Value-based Pricing
This pricing strategy, known as value-based price, or value optimized pricing is a kind
of pricing strategy method which generally sets the prices of a product or a service, but not as
a whole. In this case, the service is the Netflix service, and it sets the price as per the
estimated or anticipated value of the service to the consumers instead of the cost of the
service or the actual price of the service. It will automatically improve the revenue earning of
the company where it will be successfully used, without affecting the other revenue generated
areas, like branding and promotion and providing advertisements in social media platforms or
other areas where advertisements are used. This will help to generate higher prices, and will
help to improve the profit earning part of the organization in an innovative and attractive
way. The revenue generated can be re-invested to develop better content for the films and

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programs streamed in the platform of Netflix, one of the globally popular online streaming
platform (Fernández-Manzano, Neira and Clares-Gavilán 2016).
Value-based pricing literally implies the service benefits anticipated or recognized by
the customer instead of on the exact cost of improving the service. For another example, if
taken into account, a painting may be priced as more than that of the price of a canvas and
paints; the price here depends a lot on the painter and his or her background of work. The
price of the painting also symbolizes the factors like age, cultural significance, and, most
importantly, how much benefit the buyer is assuming. The subscriber, who is viewing the
contents on the Netflix, must feel satisfied or interested, which will drive him or her to
subscribe the platform for a certain period of time by spending a certain buck. The approach
is most successful when the service is sold based on emotions. Value-based pricing is
described based on the value that the service can be delivered to a predefined segment of
customers which are the main factor for setting the prices, as value-based pricing depends on
the power of advantages that a company can confirm and offer to their customers or
subscribers (Liozu and Hinterhuber 2013). Hence, it can be said that the value is the most
important driving force in every business decision as value aims at the price which the
potential customers are willing to pay based on the benefit offered by the Netflix business.
Value-based pricing is a procedure or technique of setting prices primarily based on the
anticipated value of the service for which the customer or subscriber is paying the
money. Companies, apart from Netflix, that offer unique or highly valuable features or
services are better positioned to take advantage of the value-based pricing model than
companies which chiefly sell commoditized items. Target rating points or the TRP’s of the
shows or programs streamed on the Netflix platform also helps the customer whether to
become a subscriber or remain just a customer. He or she can only be a subscriber if he or she

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is willingly to pay a certain amount of money, for a certain period of time, to view the
uninterrupted service of the streaming (Hallinan and Striphas 2016).
Public Private Partnership
Public-private partnership (PPP) is a partnership between a government agency and
the private sector in the delivery of equipment or services to the public. Public-private
partnerships (PPPs) have been enforced in areas of public policy which contain a broad range
of social services, civic transportation, and environmental and waste-clearance services.
Though PPPs are age old process, until the late 1980s they were not researched by critics,
when they started to be accepted in civic administration and management in developed as
well as developing countries. Based on the benefits and disadvantages of PPPs while
compared to conventional government services and the type of partnerships dealt with, there
has been a lot of political and scholarly debate on PPPs. Primarily, a partnership can be
defined as a business or corporate association where combined activity occurs. A PPP results
when one or more civic organisations allow working with a single or multiple private
organisations. PPPs grasp public-sector alliances with both businesses and management
in public society, having community organizations, independent organizations,
and nongovernmental organizations (NGOs). The partnership of a PPP is not equal to any
elementary contractual relation. Though these relations are seldom marked “partnerships” by
the parties related, they themselves don’t form a real PPP, which refers a triangular
relationship between the public authorities, the private-sector partner, service members
(Liozu, Hinterhuber and Somers 2014). A PPP must be a bilateral essential agreement meant
for fulfilling a social cause. On the other and it’s also true that increased contracts, whether
formal or informal, may lead to the formation of authentic partnership. Formalized permanent
structures are the most standardized type of partnership. In process, PPPs undergo changes as
a partnership grows and adapts to special prospects of its particular area of operation. There is

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ample effect of political cultures and traditions for the latter one. It is likely to differentiate
among substitutive and collaborative forms of partnership. In case of substitutive partnership,
the private partner compensates the public agency almost totally, for example in the French
system of deploying civic services. While for collaborative partnership, ideal of German
organizations, a certain role is played by every private partner, which is decided by the
specific profession which associates the partner (Liu et al 2014).
Financing a project through a public-private partnership can allow a project to be
completed sooner or make it a possibility in the first place. Australia can initiate some
projects which will be done by the Australian Government and Netflix, whether for any
social related program or any kind of films which has a social value. Public-private
partnerships typically have contract periods of 25 to 30 years or longer (Weill and Woerner
2013). Financing comes partly from the private sector but requires payments from the public
sector and/or users over the project's lifetime. The private partner participates in designing,
completing, implementing, and funding the project, while the public partner focuses on
defining and monitoring compliance with the objectives. Risks are distributed between the
public and private partners according to the ability of each to assess, control, and cope with
them (Akhmetshina and Mustafin 2015).
Netflix is a program assigned in a complicated environment. The suggested
systematic longitudinal evaluation of the program imparts a better idea of the links between
programs of sport and physical activity and the improvement of healthier communities. This
study proposes to assign the short and long term outcomes on promoting pro-social attitude
like school attendance and anti-social behaviour like diminishing crime; and the short and
long term results on social capacity and growth of interchangeable leadership and other skills
through sports activities participation and competitions. The relation between health status
and health profit and policy and programs that stay outside of the direct impact of the health

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sector refers to an exclusive characteristic of the research. The program depends on strong
cross-sectored alliance to provide health and lifestyle messages and uses Netflix as a focus
and delivery mechanism to give interchangeable training of skills. Multiple forms of research
practice models have to be evaluated to calculate the effect of Netflix to gain wider social and
health related aims along with sports activities. The health and wellness of the native people
will be upgraded with the help of this research and will also provide a better perceptive of
their positive lifestyle measures. One of the key aspects of PPP project structuring is
the mechanism of risk allocation between public and private parties. The two projects are
characterized by different risk allocation mechanisms between concessionaire and concession
provider (Panayides, Parola and Lam 2015).
Conclusion
From the above essay, it can be concluded that the use of Freemium for Netflix will
help the to improve a program that includes marketing skills, with leadership to distribute
positive behaviour or lifestyle messages to the society, which will help to study by the
company to know the exact number of viewers and to evaluate the target rating points for
each of the shows they are streaming on the online platforms to the people of Australia. This
will help to review the programs streaming on the platform, and this will, in turn, help to
introduce the similar kind of shows which will have higher target rating points, to increase
more number of subscribed viewers, which will help the company to make more revenues,
which can be invested to produce more interesting shows. Netflix Freemium, therefore,
provides the procedures and framework that, as a model, may be enforced hugely to any
number of entertaining or cultural settings. The promising or potential impact of programs
streaming in Netflix will help on the attendances on education, crime and anti-social
behaviour as well as improvement of leadership and managerial or administrative skills.
Evaluation of the programs will help to supply important information that will inform about

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the procedures, practice and research for future purposes. The research will help to bring the
outlook of different issues of the society.

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