Questions

How do data providers (FB, Acxiom, 4square, etc) license out their data to enterprise with ideas around pricing?

I'm curious to understand how data providers like FB, Acxiom, 4square, etc license out their data to enterprise with ideas around pricing. For example, Uber and Twitter license data off foursquare. Is there a basis for pricing this?

1answers

Here is pricing approach that I have seen used by large companies.

The data provider typical try to align their pricing model as close to their customers model as possible.

Let's say if you are pricing your data to be included in the Bloomberg terminal.

If Bloomberg charges $24,000 per terminal per year to their clients. The data provider might want to have a fraction of that. I have seen some companies charge $60 per year for their data to be included in the bloomberg terminal.

Again, there are a number of different models. Bloomberg, on the other hand, likes the data to be licensed to them at a fixed annual cost irrespective of how many terminals they include it.

There is no one-size-fits-all pricing model for data.


Answered 5 years ago

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