HOW TO MONETIZE AN OTT PLATFORMAugust 24th, 2021
Want to get into the OTT business but you are confused about how to get started? As long as Stream-Sense is here, consider all your questions answered! Let us help you understand why OTT is not only a profitable venture but very easy to monetize when you have the support of efficient helpers!
What is an OTT platform?
n simple terms, an Over-the-top (OTT) platform is a broadcasting means that uses the internet to transmit content. In a highly digitized world, OTT beats existing broadcasting methods such as satellite and cable. All the viewers need to use your OTT platform on any of digital devices like smart TV, smartphones, laptops, gaming consoles etc. and an internet connection. An OTT platform enables users to play their audio/video/gaming content on multiple devices separately or simultaneously! Services that use OTT technology to deliver their content are Hulu, Netflix, Prime Video, Disney+ etc.
This form of broadcasting has made consuming content super-easy! Say goodbye to bulky set top boxes, large cables or the need to call technicians!
How to monetize your OTT platform?
OTT is a mainstream content delivery platform today and competition in this emerging space is fierce! Businesses launching their OTT platforms must choose the right revenue models so that they can turn their content into cash!
While there are several ways to monetize an OTT service, it is ideal to create a multi-tiered OTT revenue model as it gives your users a range of options in choosing how to pay for the content.
Below are the most commonly used monetization models.
AVOD: AVOD, which means Ad-supported video on demand, gives viewers access to free content in exchange for watching ads and sponsored content. This model is a great choice as it allows users who are hesitant to pay for subscriptions or transaction fees stream content for free. AVOD is best suited for businesses whose focus is to acquire audiences
To ensure the AVOD model brings in the cash, you must give significant views and advertising impressions.
Across the globe, services relying on AVOD are YouTube, Pluto TV, Vimeo Crackle as well as publisher sites such as Conde Nast and Vice Media.
SVOD: SVOD is Subscription Video On Demand. Subscriber-supported video service forms the largest segment in the OTT space. Big players such as Netflix, Amazon Prime Video, HBO Now, and Showtime use the SVOD model.
The SVOD model offers linear and predictable streams of income and hence it suits those services that have established audiences. SVOD also works well for smaller services which have highly focused content and want to gradually build their audience over time.
Hybrid/Freemium: Hybrid approach means using a free, ad-supported service and a premium subscription. This model is designed to maximize content monetization opportunities as it helps content providers nudge their audiences to gradually transition towards a subscription model. CBS All-Access and Hulu use the Hybrid model.
Upcoming Business Models
Here are some other models that OTT service providers can adopt.
TVOD: Transactional Video On Demand or TVOD lets you charge a one-time payment per view on series or movies, channels, live events. Services like Apple, Amazon, WWE and UFC use this model and provide their users the choice to buy or rent titles or pay a one-time fee to stream content they want without having to agree to any long-term commitments.
Authenticated VOD: Through the AUTHVOD or Authenticated VOD, users must log in from another platform, service, cable (TVE), or cellular subscription to view content.
AuthVOD can also mean a free to use ad-supported service that viewers can use by just logging in. The benefit of this revenue model is that you get information about your viewers for marketing and advertising purposes.
Best practices for OTT video monetization
To ensure the safety of your consumers and your technology, follow these practices to ensure your business runs in a smooth, secured manner.
Below are the points you must pay attention to when it comes to OTT video monetization.
1. Secured Payment Gateway
With hacking and digital payment frauds rising at an alarming rate, you must ensure your audience are protected from these kinds of attacks. You, as a business owner, run a great risk of losing large sums of money due to security breaches. Hence, a proper threat assessment and mitigation must be done.
1. You can start with making sure that the payment information is encrypted by using standard bank-grade practices. This is commonly shown as HTTPS:// (emphasis on the “s”) in your URL bar.
2. You can warn users when they add their payment details when they go on an insecure site. You can also use technology that protects customers from malicious attacks and interception.
2. Making Video Delivery Secure
Piracy is one of the biggest issues for content creators and providers. You must protect your content and ensure its secure delivery. Or else, you will lose money as pirates will intercept, copy and distribute your videos, audios etc.Use industry-level security that detects, blocks and shuts down unauthorized video embeds before causing damage.
3. Preventing Ad Insertions By Servers
Consumers do not like their experience to be perturbed by excessive barging of ads amidst their streaming of content. You can help them by using ad-blockers which block ads as well as malware. This software providing these services will cost you money. You can also bypass ad-blockers by inserting ads on the servers before the content reaches viewers. This technique is fast becoming a thumb rule in the industry.
4. Marketing and Pre-Selling
Effective marketing is key to the success of any business. To bring the people to your platform, you must spend on marketing. When people follow your marketing tools, money will follow you! One of the most significant ways to do this was video pre-selling. Begin pre-sales of video content a month in advance and create a lot of hype for your platform and generate lots of revenue!
Hope this blog has answered all your questions. If you need more information or support to set up your OTT platform, contact us at the below details. We are happy to help!
Stream-sense helps businesses optimize the power of streaming not just videos, but audios, sports streaming, live streaming and more! Broadcast, distribute and monetize content with our help and make your OTT service a success!
Reach out to us – firstname.lastname@example.org