When the pandemic rushed into our lives and disrupted our way of living, everything changed, including our way of consuming entertainment. We were prohibited from outdoor activities that included theaters, then how did people sustain their regular dose of entertainment?
In that time, our mobile, laptop, and other devices became our companionship with OTT (Over The Top) platforms.
OTT players have popularized content streaming in recent years. Previously, people relied on PVRs or INOX theaters to see the latest releases but with so many OTT platforms available today, it doesn’t matter which platform you go to.
But have you ever wondered how economics works? There’s a lot of money put into the production of films and tv series and even though having an A-lister will help, sometimes it doesn’t.
When that happens, what do they do to keep the profits higher? In addition, OTT platforms are gaining traction now, so how do OTT platforms earn money?
For all those who are wondering how to generate revenue from OTT platforms, then here we have the top 5 tips that will help you to earn the profit from OTT Platforms.
Top 5 Tips To Earn Money Through OTT Platforms.
Are there many ways to monetize your content? Yes, there are different models to choose from. As an OTT provider, you have a few options available.
1. Advertise On Your OTT Platforms
In order to make money through advertising, use the AVOD (Advertising Video on Demand) model. In this model, OTT platforms stream their content for free to their viewers. They make money by selling advertisements on these videos. Some examples of AVOD services are Youtube’s free edition and Netflix.
Using AVOD is all about getting your products out there and to potential customers. Since nobody has to pay anything, it’s a lot easier to do this. Because it’s similar to traditional TV and can be watched for free, it makes watching content more accessible to users who value their time and don’t want to pay.
2. Market Particular Videos Or Series As Per Users’ Choice
This year, TVOD (Transaction Video on Demand) has become increasingly popular. Producers canceled a lot of events and movie premieres for the pandemic, so brands have been rushing to bring those things on-screen.
The TVOD model provides users with the opportunity to pay per individual piece, be it a movie, TV show or event. DirectTV and HBO are examples of this business model that offer users this choice.
TVOD is a good model when you want to sell shows on an individual basis or when you have blockbuster-type events that sell out. You can also keep your viewers coming back for more by recommending similar content or other live broadcasts.
For any business, once a customer has made a transaction with them, they can identify and know their customers directly.
Additionally, as TVOD evolves, we will have to keep in mind that this model could potentially have a profound impact on our society post-pandemic.
3. Provide Exclusive Content To Premium Subscribers
The next way is the PVOD (Premium Video on Demand) model, where users can additionally pay for premium content and watch it before it is accessible to regular subscribers.
A notable example of the PVOD release model is Disney+Hotstar, which recently used it for the premiere of Mulan. If you subscribe to this service, you could have paid an additional $25 on day one to get a copy of the film.
On the one hand, if your content is of a high enough standard it may be justified to charge for live or even pre-recorded content. Viewers do enjoy having access to information that should be paid for.
Some people are willing to pay a premium price for early access to new movies, and this is the first day, first show experience you might get. Even if it’s just spoilers that have been spoiled by social media or reviews by critics, blocking them out will ensure an authentic experience.
4. Paid Subscriptions For The OTT Platforms
One of the most popular ways for OTT services to make money is by offering subscriptions. Services like Netflix and Disney+ have done really well with this. In SVOD (Streaming Video on Demand) models, users pay a recurring fee to access a streaming service In exchange, they get continued access to all of the content.
The advantage of SVOD is not only the monthly revenue stream. It also gives insights that could pave the way for new comprehensive strategies to make a serious impact on your business
The benefits of using a social media platform like this are – Your user data will be secured, people have to sign in to your service before they can use it. For example, they can provide recommendations on what TV shows to invest in and how to structure your paywalls. They also have insights into marketing products.
5. Use A Mixture Of Different Models
There are many different ways to use a hybrid model, like with the freemium model. For a while, they’re free and then they turn into one of the other models, like SVOD.
There are also TV streaming apps that offer, for the most part, ad-free experiences until you decide to start paying for boosts or premium content.
Streaming services have emerged as the new way for people to watch their favorite shows. However, there is an ongoing debate about the number of ads that are present and how many can be skipped before having to pay for a subscription.
They are accessible on all devices, offer a wide variety of content, and don’t require a contract.
Wrap Up!
So, these were the models that OTT platforms follow in order to generate revenue. Creators and viewers can use a combination of these models – they’ll be the hybrid model.
In this post, we shed the light on how Over The Top (OTT) platforms are generating revenue by providing insights into their business and marketing strategies. We hope this post was helpful!