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HEALTHDAY.COM -- Licensing Health News
Member Profile
ICSC member HealthDay News is on its way to becoming "the leading source of health news" according to President and CEO Dan McKillen.
HealthDay produces and syndicates its own content, which is consumer-relevant health news distilled from technical journals and medical and scientific conferences. The news is explained in laymen’s terms by a staff of expert health writers and editors, including a Pulitzer Prize winner. Additional divisions of the company syndicate to the following two groups: medical publishers targeting physicians and other health professionals, and publishers seeking customized health-related content.
Broad Distribution Model HealthDay syndicates its health news -- at least 12 hard-news articles daily -- to a wide variety of Web publishers, including large portals, such as Yahoo!, MSN, Revolution Health, and Everyday Health, as well as major-media publishers online like BusinessWeek, Forbes and over 200 TV station Web sites. In addition, its content is carried on the Web sites of managed-care organizations like Blue Cross Blue Shield and syndicated to the Web sites of more than 1800 hospitals, 600 pharmacies and 100 newspapers (content is often printed in the papers as well).
The power of syndication enables HealthDay to achieve broad reach for its content: According to McKillen, more than 50 million people read at least one HealthDay article per month.
Licensing Business Model
While HealthDay maintains a Web site (HealthDay.com), it does not seek to attract users to it, but uses it primarily as a marketing tool for the company to increase distribution. That’s because HealthDay makes its money by licensing its content to Web publishers, rather than via advertising. Besides providing a guaranteed revenue stream, this strategy gives HealthDay considerable editorial freedom in addressing potentially controversial health topics, such as the efficacy of specific drugs or treatments.
In an Internet environment where ad revenue growth is not keeping pace with the ever-expanding galaxy of Web sites, the ability to obtain license fees for content is very appealing -- a major subject among online video producers, for instance. However, in order for a content provider to obtain license fees rather than a share of ad revenues, there has to be an important value proposition for the publisher.
According to McKillen, HealthDay’s success in generating license fees for its content is due to its fourfold value proposition for publishers:
1. The content is important to users.
In a health-conscious society people are eager to have a reliable source of health news. HealthDay’s news items are frequently included in the top three most emailed stories of the day on Yahoo! according to McKillen.
HealthDay works hard to be a trusted and reliable news source. For example, it has established solid relationships with top medical journals such as the New England Journal of Medicine, and it routinely receives advance copies of upcoming articles with the agreement that they be embargoed until an agreed-upon publishing date and time. Thus HealthDay is able to be among the first to break important health stories.
2. The content is news, and is fresh daily.
Much of the health-related content on Web sites is static (e.g., diet and exercise advice for diabetics). For many sites, HealthDay content is the only thing that changes. It therefore gives users a reason to visit the sites often.
3. The fee includes archival data.
While HealthDay’s material is provided as fresh news, the health information it provides also has value over time. Its licensing arrangement allows publishers to keep the items on their own server, in their format, for up to a year.
4. The health content is attractive to advertisers.
As noted, HealthDay does not embed advertising in its content, relying solely on license fees. However, many advertisers are eager to reach health-conscious consumers, so publishers find that placing targeted advertising on the Web pages that display HealthDay’s news content can be a reliable income generator for them.
Because it uses a licensing model, HealthDay’s subscribing sites are self-selected, so the company needs to do little screening of them -- except for sending the occasional takedown notices to unauthorized sites. It generates additional revenue by allowing certain highly-focused publishers to receive only articles of direct interest to them (e.g., prostate treatment articles for the Prostate Cancer Foundation).
Bottom Line
HealthDay reaches 50 million unique readers monthly via a broad-based Internet syndication model that relies on license fees rather than advertising support. It has successfully persuaded Web publishers that its content -- health news, vetted by experts and written for general audiences -- is valuable enough to be worth paying for because it has high viewer interest and can generate advertising revenues for them.

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