Traditional operators will need to adjust to streaming video content to meet user demand and further monetize their sizable customer networks. It is no longer a service for the future.
According to a Pew Research Center survey, the share of online video has increased from 24% to 44%. (percentage of Americans who only watch streaming content).
The demand for online streaming services is also anticipated to increase by USD 149.96 billion between 2020 and 2024, at a CAGR of over 18%. (Technavio).
Numerous OTT services have emerged, allowing millions of users to view video content online.
If you consider Apple TV app development – you should take into account one of the advantages of such apps – subscribers may access your content through each app, which is shown on pages like the home screen in its place.
That fact is one of the causes that make OTT services monetization successful. Moreover, to boost subscriber growth and raise their chances of monetization success, these businesses (like YouTube, Apple TV, Netflix, Disney+, Amazon Prime, and other pay-TV streaming services) use several monetization techniques.
In the following chapters, you will find several ways to make money.
OTT: What does it mean?
OTT technology uses the open internet and many connected devices (STB, Smart
TV, smartphone, tablets, laptops, etc.) to access desired content and services, in contrast to traditional video broadcasting where you need a television set with a connection through cable or satellite.
Numerous opportunities exist for various network operators to monetize their video distribution services as OTT services gain popularity.
What content can be monetized
Live broadcasts are frequently offered via OTT technology, even though the majority of OTT material is handled by VOD-based services.
With live TV services enhanced with interactive features like Catch-Up TV and Timeshift, this has grown in popularity.
Live and on-demand programming may both be made money off of. It is feasible to monetize a mix of live TV and on-demand services. Some services solely employ live material, while others only use on-demand content.
Options for monetization
When monetizing OTT content, operators have three major monetization options.
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Using subscriptions to make money
It is frequently utilized in Video on Demand OTT services like Netflix, Amazon Prime, and Disney+, as well as ad-free versions of YouTube and other platforms, and is most usually referred to as SVOD (Subscription Video on Demand).
The most typical use of this monetization method is seen in conventional pay-TV services. It is based on a set monthly charge that a customer pays after subscribing to a certain service bundle.
Tiered pricing is available for several SVOD providers. In certain situations, SVOD hybrid models provide an ad-free watching alternative with a higher membership fee (like YouTube).
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Monetization based on advertising
We often talk about AVOD (Ad-supported Video on Demand) because it concerns monetization since it requires users to watch advertising while the video is being streamed to access a library of free material.
When it comes to advertising dynamics, adverts typically cannot be missed. Before continuing to watch content, users must watch the complete or a portion of the advertisement.
The ability of the network to push customers with tailored adverts while they are watching the service is intriguing with ad-based services.
Since OTT platforms make it possible to gather data, this information may be combined and quantified in terms of user interests.
Then, rather than receiving a generic advertisement that is shown to everyone, these users would receive a “more relevant ad.” Advertisers may maximize the reach of their adverts in this way.
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Monetization based on transactions
Users who like to see certain content files must pay for them under the transactional form of monetization. This strategy is most frequently referred to as Pay-Per-View when it comes to living TV events (PPV).
This business model offers the customer a great deal of freedom since, like with iTunes, the viewer only pays for the material that is selected.
This technique is frequently used by operators to upsell services that are not always included in the basic subscriber package and so increase revenue.
OTT content monetization best practices
An operator must take into account several other factors in addition to the monetization strategies mentioned above to be successful.
For the operator to reap the maximum advantages, the OTT platform must enable several adaptive actions.
Delivering Videos Securely
It is crucial to choose a video platform that offers safe and secure video distribution when an operator will be distributing the material online.
The content must be safeguarded from any pirate intercepts that might duplicate and disseminate it, particularly when you are monetizing the content. This is necessary from both a safety and content owners’ standpoint.
Marketing Strategy
The key to enabling the flow of new members to the service is maintaining a marketing strategy. It must be carefully organized, packaged with captivating content, and provided with proactive service.
The marketing-related actions will generate buzz and enthusiasm, help the service monetize, and expand.
Marketing Techniques
Maintaining a marketing plan is essential to allow the service to continue to attract new subscribers. It needs to be well-planned, filled with interesting information, and offered proactive service.
The marketing-related activities will create excitement and buzz, and assist in monetizing and service expansion.
It’s critical for broadcasters and pays TV providers to provide engaging bundles of live TV and on-demand programming (Catch-Up TV, Timeshift functions, and on-demand content).
Summing Up
The future and present of professional broadcasting are OTT videos. We advise you to investigate this sector as it expands to position yourself at the top when it reaches its full potential.
It need not be difficult to learn how to apply these monetization strategies that function effectively in a multi-device, web-driven world.
It’s simple to monetize content and launch an OTT video platform when you have access to the necessary resources, such as online video platforms.
