Businesses nowadays rely on video streaming revenue models to broadcast their video content. Users are no longer restricted to fixed entertainment programs on TV channels. They have shifted towards OTT platforms that offer them a flexible viewing experience. The revenue for OTT platforms globally will be more than USD 80 billion by the end of 2022.
Video streaming business models are the talk of the town due to their high revenue-generating capacity. Are you confused with choosing from various video-streaming revenue models for your business? Read on to know about different monetization models for VOD platforms and their work.
Video Monetization: Definition
Video monetization refers to the process of generating revenue via your video content. The revenue model decides how you will make money out of your VOD platform. Video streaming revenue can be collected by subscriptions from users or by giving stakeholders access to your customers.
How will you make money out of your video content if you don’t know what video monetization is? As a business owner, you should know about the top revenue models for streaming platforms like SVOD, TVOD, and AVOD. Your monetization model will only decide what type of marketing strategies you will use for your VOD platform.
Businesses That Generate Revenue from Video Streaming
Some of the top brands that generate income from video streaming are:
Netflix is one of the giants in the global OTT industry. Netflix is spread across 190 countries and has more than 200 million users around the globe. It uses an SVOD revenue model that collects payments for monthly or yearly access to its content library.
It offers three types of subscription plans to customers that are Premium, Standard, and Basic. Once you have paid for a subscription plan to Netflix, you will gain unlimited access to its content library. Netflix generates huge revenue from online video streaming. In 2020 alone, it generated more than USD 24 billion.
Read more on how to make a streaming website like netflix
iTunes is another giant in the audio streaming industry. It uses a pay-per-view monetization model that asks for payment for the volume of content that has been used. For listening to any album on iTunes, you will have to pay separately for it. Once you have paid for the content on iTunes, you will have lifetime access to it.
It is an audio streaming product launched by Apple and has a vast user base around the world. In 2020, iTunes generated a whopping USD 4.1 billion by streaming audio tracks.
YouTube is a popular video streaming platform that combines various monetization models. It uses a model for providing free video content to viewers with ad insertions. It also derives the functionality of the SVOD model and pay-per-view model to form a hybrid monetization model.
The revenue from video streaming for YouTube was more than USD 19 billion in 2020. It is also one of the most-used video streaming platforms on the globe and has many active users.
How Can You Make Money on Video Streaming with Monetization Models?
Numerous monetization models for video streaming platforms are listed below:
AVOD (Advertising Video on Demand) model is commonly referred to as the model. It lets users view video content without any charge until they have no issues with ad interruptions. Users can pay for removing the ad interruptions which will generate revenue for the publisher. An AVOD-based video streaming platform revenue will also be generated by the ads shown by different brands/businesses.
SVOD (Subscription VOD platform) is a widely used technique to make money from video streaming. The top VOD platforms like Netflix and Amazon Prime use the SVOD model. An SVOD model generates revenue by charging users for a monthly, yearly, or quarterly subscription plan. During their subscription period, users can access any content from the VOD platform.
SVOD model is great for businesses that can provide regular video content to viewers. Publishers can earn a recurring income every month if they choose the SVOD model for their streaming platform. The income generated by an SVOD platform is predictable.
TVOD (Transaction Video on Demand) platform is also known as the pay-per-use model. Users can pay for only the video content they stream. If you have limited video content to start with, you can monetize video streaming via the TVOD model. You can generate revenue multiple times from a single video with the TVOD monetization model.
SSAI (Server-side Ad Insertion) is used to provide adverts seamlessly with the VOD content. There will be no significant changes to the video player when an advert starts. The advertisements provided in between the content will generate revenue for the platform owner.
Third-party Ad Integration
In third-party ad integration, the adverts will not be stored in the web cache. Instead, the adverts will be displayed via a third-party server. It helps to provide adverts based on customer interests.
Read more on Create Your Own Video Streaming Website
The Necessity of Having Monetization in Video Streaming Platform
How to make money on video streaming when you will not monetize your original video content? A suitable monetization model will help in increasing your ROI (Return on Investment). You can choose a white-label platform provider to develop a personalized VOD platform for your customers.
Platform providers have experienced development teams that will build a VOD solution based on your business requirements and audience. You can partner with a white-label platform provider for:
• Developing a unique VOD solution with 100% customizability.
• Choose from numerous video monetization models based on your business needs. A thought-out monetization model will help you in generating huge ROI.
• You can also contact a reliable platform provider for upgrading an existing VOD platform. Bugs and outdated tech stacks can be fixed by an experienced development team.
Online video platforms can understand the viewer preferences and provide recommendations. The customer retention rate of VOD platforms is high. In this age of digitization, launch your tailormade video streaming platform!