Why Multi-tiered OTT Model Is The Way Forward ?June 16th, 2021
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.
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!