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The Day Has Come! It's An OGL! And A Store To Buy & Sell D&D 5E Products!
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<blockquote data-quote="Ramicus" data-source="post: 7691041" data-attributes="member: 6798940"><p><strong>D's OBS/WoTC $$ Take...and a crystal ball reading</strong></p><p></p><p></p><p></p><p>OBS takes 40% when you do not sell exclusively on OBS (which is basically DTRP and RPGNow).</p><p>OBS takes 35% if you sell a product exclusively through OBS. </p><p>Last I knew, these were the general terms, barring any recent changes to their agreements.</p><p></p><p>That means since there is a right to exclusivity (cannot sell anywhere else) that this contract is charging te author/publisher 15% more than the typical exclusive marketplace contract for OBS (35%), all of which goes to WotC. Additionally, WotC is charging OBS 10% for the exclusive marketplace itself, leaving them each with 25% of the net sales margin on the User Created content. </p><p></p><p>From OBS perspective, they are paying WotC a 10% premium on their standard "exclusive market contract" which normally carries a 35% net sales margin in exchange for an exclusive WotC marketplace for 5e User-Created Content with a license for FR IP under explicit contractual conditions.</p><p></p><p>From the Creative User perspective, each author is paying WotC a 15% Premium on the normal exclusive market net sales margin of 65% in order to be able to utilize the WotC FR IP under explicit contractual conditions. That results in a 50% net sales margin for the author/publisher.</p><p></p><p>To summarize, WotC is getting 25% of the product's net sales margin: 15% comes from you, the author, and 10% comes from OBS. That's the cost of the FR IP to both the author and the marketplace combined.</p><p></p><p>They way they've explained it works and is far more publisher-centric. In business terms, WotC has all the cards - and licensing is never free.</p><p></p><p>Normal exclusive market net sales margin charge: 35% to OBS, 65% to author/publisher.</p><p>DG net sales margin charge: 25% (-10%) to OBS, 25% to WotC, 50%(-15%) to author/publisher.</p><p></p><p>In all, the concept is win-win for user-created content. I also suspect this means that the WotC focus will NOT be on official FR materials - at first. Something like this model would certainly gauge how much market saturation there is for FR, and provide WotC insight into how well new products might sell based on continued interest. It will also dilute the WotC profitability of new FR material at first.....as the marketplace gets established.</p><p></p><p>My crystal ball says that going forward, WotC continues to focus on other settings, as they have already been dabbling at, and let's the fan base provide its own FR-fix while they grow some other IP to profitability. This isn't necessarily bad because they do have some cool IP besides FR, and it creates good will with the customer base by meeting their needs in new, creative ways while still making money on the FR IP.</p><p></p><p>Just my take.</p></blockquote><p></p>
[QUOTE="Ramicus, post: 7691041, member: 6798940"] [b]D's OBS/WoTC $$ Take...and a crystal ball reading[/b] OBS takes 40% when you do not sell exclusively on OBS (which is basically DTRP and RPGNow). OBS takes 35% if you sell a product exclusively through OBS. Last I knew, these were the general terms, barring any recent changes to their agreements. That means since there is a right to exclusivity (cannot sell anywhere else) that this contract is charging te author/publisher 15% more than the typical exclusive marketplace contract for OBS (35%), all of which goes to WotC. Additionally, WotC is charging OBS 10% for the exclusive marketplace itself, leaving them each with 25% of the net sales margin on the User Created content. From OBS perspective, they are paying WotC a 10% premium on their standard "exclusive market contract" which normally carries a 35% net sales margin in exchange for an exclusive WotC marketplace for 5e User-Created Content with a license for FR IP under explicit contractual conditions. From the Creative User perspective, each author is paying WotC a 15% Premium on the normal exclusive market net sales margin of 65% in order to be able to utilize the WotC FR IP under explicit contractual conditions. That results in a 50% net sales margin for the author/publisher. To summarize, WotC is getting 25% of the product's net sales margin: 15% comes from you, the author, and 10% comes from OBS. That's the cost of the FR IP to both the author and the marketplace combined. They way they've explained it works and is far more publisher-centric. In business terms, WotC has all the cards - and licensing is never free. Normal exclusive market net sales margin charge: 35% to OBS, 65% to author/publisher. DG net sales margin charge: 25% (-10%) to OBS, 25% to WotC, 50%(-15%) to author/publisher. In all, the concept is win-win for user-created content. I also suspect this means that the WotC focus will NOT be on official FR materials - at first. Something like this model would certainly gauge how much market saturation there is for FR, and provide WotC insight into how well new products might sell based on continued interest. It will also dilute the WotC profitability of new FR material at first.....as the marketplace gets established. My crystal ball says that going forward, WotC continues to focus on other settings, as they have already been dabbling at, and let's the fan base provide its own FR-fix while they grow some other IP to profitability. This isn't necessarily bad because they do have some cool IP besides FR, and it creates good will with the customer base by meeting their needs in new, creative ways while still making money on the FR IP. Just my take. [/QUOTE]
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