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Strategy Map›Layer 5 · Go-to-Market Strategy›Monetization Strategy/Who pays, and for what+ from outside the named canon

Data Licensing

What is Data Licensing?

The company licenses data its product accumulates (user content, clinical records, transactions) to a second buyer who is not the product's main customer.

How Data Licensing works

The record that ordinary use leaves behind is sold to a second buyer, adding revenue that the main customer does not pay for.

How companies won with Data Licensing

From the win chains in Strategy Canon case studies: what the winner did, and what its rival did at the same step.

vs. ASCO CancerLinQ · 2014–22

Flatiron Health

Sell the same data to every drugmaker

What it did
Pfizer from 2014; Roche's 2016 purchase agreement non-exclusive
ASCO CancerLinQ
Licensed the database to two vendors for fixed annual payments (December 2017)
Read the Flatiron Health case study →
vs. Foundation Medicine · 2016–20

Guardant Health

Test volume becomes a biopharma data business

What it did
40+ biopharma customers, top five at 34% of revenue (H1 2018)
Foundation Medicine
Owned by Roche, a drug maker, after its $2.4B acquisition (2018)
Read the Guardant Health case study →
vs. Foundation Medicine · 2018–25

Tempus

Sell the same records to every drugmaker, year after year

What it did
MedImmune bought 4,000 records in the first year
Foundation Medicine
Biopharma revenue ($99.7M, 2017) came mainly from testing partners' samples (15,587 tests)
Read the Tempus case study →

Also tagged: Reddit · Sermo

The question to ask of a company

What record does the product accumulate, and who else pays for it?

Who names it

AuthorWhat they call it / where it appears
Strategy Canon +Data licensing (editorial synthesis)
Note. Near miss: A dashboard sold to the product's own customers. Does not count: Selling ads against user attention (Cross-Subsidy); analytics sold back to the same customer.