How we generate Revenue at Cutcaster?

We believe that Cutcaster’s sales will be primarily derived from the marketing of video and image reproduction as well as broadcasting rights to a range of business and individual customers. The site will employ a micro-payment model for this type of licensing and will tier the pricing of the content based on the resolution size of the file.

Revenues will arise from two principal types of licensed sales through the Cutcaster website:

1. Royalty-free sales or sales in which the user pays a one-time fee for unlimited use, are recognized from the time the video or still image is downloaded by the customer.

2. Rights protected sales or “extended licenses” are recognized when an agreement has been completed with the customer for the use of the video or still image (the “content”), and the “content” has been made available for use. Rights protected pricing terms do not call for additional fees beyond the agreed fee, and the buyer is contractually obligated to pay the invoiced amount upon agreement of the usage terms and delivery of the image for use by the seller.

The price is generally determined by resolution size and the extent of the rights granted over the use of the image or video clip. This can vary significantly across geographic markets and customer groups, i.e. how it is used and who is seeing it.