Deep-dive Into Types of Video Content Monetization
The rise of OTT streaming platforms has brought about a whole new range of monetization opportunities for video content across various verticals such as sports, lifestyle, education, and entertainment. Businesses can reach a wider audience, including global markets. They can also benefit from more detailed audience analytics, which can help them to better understand viewer preferences and tailor their content to suit their needs. This can in turn help businesses to improve their content, increase engagement, and ultimately drive revenue growth. With the ability to white-label any video content and go to market as your own brand, content creators can build brand equity and gain customer loyalty, leading to increased revenue and growth.

OTT streaming offers a wide range of monetization opportunities for video content, including subscription-based models, transactional video on demand (TVOD), and ad-supported video on demand (AVOD). Subscription-based models provide a recurring revenue stream, while TVOD offers a one-time payment for access to individual pieces of content. AVOD, on the other hand, provides free access to content with advertising displayed during playback. Additionally, OTT streaming allows for flexibility in pricing models, allowing content creators to experiment with different strategies to find what works best for their specific target audience.
Some common OTT monetization models:

  1. Subscription-based model(SVOD): In this model, viewers pay a monthly or yearly fee to access the content on the OTT platform. The subscription fee can vary based on the content offering and the duration of the subscription. Examples of platforms that use this model include Netflix, Hulu, and Amazon Prime.
  2. Transactional model(TVOD): In this model, viewers pay to rent or buy specific pieces of content, such as a movie or TV show. The cost of renting or buying the content can vary based on factors such as the popularity of the content and its age. Examples of platforms that use this model include Amazon Instant Video and iTunes.
  3. Ad-supported model(AVOD): In this model, viewers can access the content for free, but ads are shown during playback to generate revenue. The ads can be pre-roll, mid-roll, or post-roll and can be targeted based on user demographics and viewing behavior. Examples of platforms that use this model include YouTube and Crackle.
  4. Freemium model: This model is a combination of the subscription-based and ad-supported models. Users can access a limited amount of content for free but must pay a subscription fee to access additional content. The free content is usually ad-supported. Examples of platforms that use this model include Spotify and Pandora.
  5. Sponsorship model: In this model, a brand sponsors the content or the platform itself. The brand can have its name or logo displayed prominently on the platform or can be integrated into the content itself. Examples of platforms that use this model include Red Bull TV and GoPro.

Overall, the opportunities for video content monetization using OTT streaming are endless including building hybrid models, and the benefits for business growth are vast. With the right platform, such as BOSS, content creators can capitalize on the monetization opportunities provided by OTT streaming, leading to a wider reach, increased revenue, and continued growth.