Different ways of monetising your content through OTT platforms
The streaming content environment has been upgrading rapidly and the market is expanding at a drastic pace. Consumers have become more adaptive towards OTT due to pandemics and as per reports, more than 1.4 million subscribers have given up on their cable connections in 2020 itself. The best part about OTT videos is that it allows content pieces from any devices with an internet connection such as TVs, tablets, smartphones, laptop. and more. A question around monetizing OTT has also started arising with the expansion in the market. Video content production is a tough job that involves capital investment and thus it is really important that content creators are well aware of how to monetize their content. Because OTT streaming is becoming increasingly popular, there are limitless opportunities for professional content creators and broadcasters who want to monetize their own OTT streaming services.
- Advertisements on the OTT channels (AVOD)
This model is called Advertising Video on Demand (AVOD). In this model, viewers don’t have to pay any money for watching the content. The platform earns money through advertisement spots they sell to various brands. Instead of paying cash for video access, users spend about 10 seconds of their time viewing an ad paid for by a sponsor. Especially designed ad-supported programs tailor their advertising with an aim to target audience through keywords and customize the selection. The most prominent benefit of this model is the high consumer acquisition. More people opt for this mode as it’s practically free for them. The price-sensitive audience loves this mode and this mode comes really close to traditional TV. The only problem with this model is the compromise that goes on user experience. Advertisements do control a large part of the user experience which is not controlled by the publisher. If the quality of the advertisement is poor, it will impact the user experience.
- Paid Subscription of OTT channel (SVOD)
This model is called Subscription Video on Demand (SVOD) where users pay a recurring fee in order to avail themselves of the streaming facilities. It is the most popular model among the OTT platforms. Transactional video monetization can generate significant income as long as your audience is highly motivated to watch your videos. The biggest benefit of this model is the availability of data insights. As users need to sign in, they are required to put in all kinds of information about themselves. As an OTT channel, you can have all the required information such as location, age, preferences of content, and others which can help in driving strategies and content which has higher chances of success. The only major issue with this model is the money factor. Not every audience member would be willing to pay for 2-3 streaming services and thus you would have to compete with many platforms for your spot. Content publishers are required to ensure that your channel is a priority. Another issue with this model is to make sure original content is available. If similar content is available on another platform, the audience would have no reason to choose your platform. Subscription payments may be integrated into OTT video platforms’ services as well. We provide Cheap video streaming Platform
- Selling Individual video or content (TVOD)
This method is called Transactional Video on Demand (TVOD) where content creators sell a particular series or a video to one specific OTT platform. As the pandemic led to the shutting down of cinema halls along with an absence of events and movie premieres, the Online medium has turned out to be a great alternative. People can today rent a movie or watch a live event or show. Subscription payments may also be integrated into the services of OTT video platforms. For anyone hosting blockbusters, this is the number one option they should go for. The audience gets a pay-per-view or pay-per-piece option to settle the scores for. For event organizers who host live events selling individual tickets, this model is most suitable. It keeps an option of re-entry into the market with some kind of content. If you make quality content, there is a high chance she will return. The major challenges around the TVOD model are still making a lot of progress and a lot of market research is happening to figure out issues with it. There is no guarantee as to what will happen to this model in the post-pandemic world. The question that would be people be still interested in online events would be there or not. Subscription payments may also be integrated into OTT video platform services.
- A Hybrid model of monetization
There is no hard rule that monetization can flow in only one way. Freemium is one such way in which service is free for a while which becomes SVOD later on. There are few channels that offer the AVOD model with an option to turn it ad-free SVOD model so that an audience can choose a model as per their preference while channels are more sure of making money.
OTT video is the present as well as the future of professional broadcasting. We recommend that you investigate this industry as it expands so that you can be at the forefront as it reaches its full potential.
Every Video on demand model has proven to be successful for businesses. Choosing the wrong model can also be deadly for business and be a major reason for its failure. There is no such thing as the best model to monetize OTT. The publisher really needs to consider what their monetary goal actually is, do some market research and evaluate the demography of their audience.
While it would be really difficult for any one individual to take a call on all subject matters, there is always an option to collaborate with the platforms that offer these services and can guide you about what would be best for your content While each platform have different terms and conditions and monetary deals, certain channels can guide you through the whole process and help you choose the best option. We are Video Streaming Platforms providers in india
Mogi’s Proprietary Video Tech
Mogi’s Video Tech solutions are available end-to-end (Video Transcoding + Video Player + Mogi Streaming Engine (Multi-CDN delivery) + DRM + Video Analytics) or you can use individual products from the entire suite like just the Video Transcoding. Mogi also provides white-label end-to-end plug n play solutions for OTT and Edtech Platforms, with Web, Android and iOS apps as well as a dedicated CMS for OTT and LMS for EdTech.
One of the best individual products we have is our Transcoding Architecture, which is a unique cluster-based process, does the transcoding within 30% of the content length. The transcoding architecture’s result includes a highly compressed video of up to 50% with no loss in quality, and if you choose quality enhancement, a 40% compression with the enhanced video quality.
The pricing for Transcoding is very competitive as well, and along with it you get a highly compressed output with the same or higher quality. This means not only is your contractual pricing is low due to competitive pricing, but your bandwidth consumption also reduces, and user experiences increase multifold. It’s a win-win for all of us (Users, Clients, Mogi).
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