Blender Business Model – How Does Blender Work and Make Money?

Blender Business Model
Source: www.blender.org

What is Blender?

Blender is an open-source 3D computer graphics software toolset. The app is free to create animated films, art, 3D printed models, motion graphics, virtual reality, computer games, and visual effects. Furthermore, it features 3D modeling, texturing, raster graphics editing, and much more. It is one of the most prominent tools in the 3D graphics software industry. A reason for its popularity is its performance combined with being free.

Blender operates under the Blender Foundation community. The original author for the software is Ton Roosendaal. Currently, the app is on its stable release 3.0.0, with an alpha version available on 3.1.0-alpha. Initially, the app became available for public use in 1995. Since then, it has gone through various updates to provide more features. On top of that, it has also expanded to other operating systems, including Android, macOS, and Linux.

Currently, Blender operates from Amsterdam, the Netherlands, through the Blender Foundation. This foundation started its operations in 2002 as a non-profit organization. Its chairman is Ton Roosendaal, the software’s founder. He is also well-known for NeoGeo, an animation studio he founded in 1988. His company garnered various awards for its work with several corporate clients.

During his time in NeoGeo, the founder struggled with 3D-focused graphics tasks. At the time, he didn’t have the tools to tackle their requirements. Therefore, he started working on an in-house animation tool. The company began the development process in January 1994. A year later, they made it available for the public to use. It got its name Blender inspired by Swiss electronic group Yello from a song they released.

Until 1998, Blender was a part of NeoGeo. However, the founder spun it off and based it under a separate company. At the time, he decided to call it Not a Number (NaN). It was also when he released it publicly online as SGI freeware. Meanwhile, he dissolved NeoGeo and distributed its contacts to another company. The reason for this step was to focus attention on Blender.

NaN began monetizing Blender by granting users access to new features for $95. Furthermore, the company gathered funds from venture capital finance at the time. By 2000, the company had over 50 employees developing the software. However, it did not have a sustainable business model since the demand was low.

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The company also attracted more finance in 2001. However, it shut down its software in 2002. Despite that, it did not mean an end for Blender. In 2002, Ton started Blender Foundation, a non-profit that would open-source Blender’s software. Its community contributed to the code via commits and donations over the years. At the same time, the foundation began producing films, which exhibited its software.

How does Blender work?

Blender works by allowing users to turn their ideas into 3D models or videos. As mentioned, there are several features that the software provides. Users must download the app from its website first. This app is free and also open-source. Therefore, there are no hidden charges or revenues models hidden inside it. Once users download the app, they must install it on their system. However, they will need a graphic card to render the models.

Once users install the app, they can open it. The Blender interface is similar to some video editors. On the left, it has a toolbar, usually including object tools. To the right, the app shows another toolbar. The file operations are at the top. The timeline is at the bottom. Lastly, the centre part of the app holds the 3D view. Users can get started with their projects using this interface.

Blender also allows several navigation features which are essential to its software. Users can rotate and move objects using mouse controls. Similarly, they can scroll on it. On top of that, they can select multiple objects simultaneously. The software also allows several editing features, which fall under the Edit mode. The Object mode is to view the 3D model and move it around.

Users can add various objects to the editor and merge them. On top of that, it allows several other features that can help users create their desired project. There are several modifiers that can also help them with their creative goals. Once they finalize their design, users can render the object. Similarly, they can save the project if they want to work on it later.

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Overall, Blender is a 3D modeling software that provides several tools. These tools can help users create and edit their desired objects. The app has several features that most designers will find useful. On top of that, it is free and open-source, which makes it more trustable. The software can help users with several projects related to 3D projects.

What is the Blender business model?

Blender is open-source software. Most of its code comes from an international team of volunteers who work on the project. Similarly, it is free and does not display any ads. On top of that, the app provides constant updates, offering new features. These features make some users wonder how Blender makes money if it does not charge a fee.

As mentioned, Blender works under the Blender foundation, a non-profit organization. Therefore, making money or profits is not a goal for the company. Despite that, it generates revenues from several sources. These sources constitute the Blender business model. Its primary product is the Blender software, available on multiple platforms.

Blender users a combination of business models. Primarily, it operates under a donation-based business model. Under this model, the foundation receives donations from various users. Similarly, these donations form a significant portion of the money that the foundation makes. Within this model, it offers a tiered membership system with pricing plans.

On top of the donation-based business model, Blender also uses a subscription-based model. Under this model, the foundation allows users to use the Blender Studio. Users can pay a subscription fee to use its elements. Similarly, the company offers various tools and training videos in this plan. Therefore, users get many features under the subscription-based model.

Overall, Blender generates a significant portion of its money from donations. However, it also charges subscriptions for one of its tools. These sources create the Blender business model. However, profits or revenues are not a focus for the foundation. Therefore, the company does not strive to increase them.

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How does Blender make money?

From the above Blender business model, it is possible to construct how it makes money. The foundation generates revenues from two primary sources. These include donations and the Blender Studio. However, it also makes money from other sources. Some of the ways Blender makes money are as follows.

Donations

Donations are the primary income source for the Blender Foundation. It generates this income from individuals and corporate partners. As mentioned, there are several tiers within this package to which users can donate. This system allows users to become members and pay a monthly fee to the foundation. These donations may also include other features.

Subscriptions

Blender has an app known as the Blender Studio. Using this studio, users can create movies and games. However, this app is a separate entity that receives funds from its members through subscriptions. The foundation charges users €9.90 to access the Blender Studio. The app contains various features, such as training, assets, and films.

Merchandise

Blender also has merchandise which it sells through its online store. Users can purchase items, such as socks, t-shirts, caps, stickers, and books related to the app. For these items, the company charges users, which contributes to merchandise income. However, this income does not constitute a significant portion of the foundation’s revenues.

Ads

As mentioned, Blender does not display ads on its software. However, it has a YouTube channel that produces videos. On this channel, the foundation has close to 900k subscribers. Blender has opted to receive ad revenues from this channel. Therefore, the foundation also makes ad revenues. However, these revenues do not constitute significant income.

Conclusion

Blender is an open-source 3D computer graphics software. The app operates under the Blender Foundation, which got established in 2002. Overall, Blender is an app that allows users to design 3D models, videos, and graphics. Its business model includes a combination of revenues sources. Blender makes money from various sources, as listed above.

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