Bay Area Studios is a venture that combines public benefit with characteristics traditionally associated with for-profit enterprise, such as innovation, efficiency and financial return.
This is called a:
business/social "hybrid value-added chain" (HVAC).
In practice, this means that Bay Area Studios has created an entity that is both:
for-profit and non-profit. The for-profit area of the organization provides a low-cost service to people and maintain modest profit margins.
As the organization serves more people and achieves an economy of scale, the profits help subsidize the service for people who cannot afford it. This practice is nearly identical to other professions that provide high-value services to clients who can pay for it, while providing free service for clients who cannot afford the high fees.
A typical law firm requires its lawyers to do some pro bono work for the poor and destitute.
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