A Focus on Top OTT Revenue Models in 2020

OTT Revenue Models : The OTT Video Solutions has emerged as a key media interest during the COVID-19 in India. With movie releases delayed and other sources of entertainment drying up, most people go online for entertainment. Going by social media and print campaigns, it can be seen that these platforms are competing for their market share. They are also spending and investing on building a loyal customer base. Amid this competition, how do these platforms thrive? What are the key monetization models adopted by them? This post offers insights on top OTT monetization models opted by big and small OTT players in 2020.

An Overview of Different Monetization Models Adopted by OTT Platforms

There are mainly four types of models opted by OTT Video Streaming platforms today. Video on demand or VOD is common to all these models. VOD allows viewers to watch the movie or video of their choice at their convenience. Based on VOD, the following are the four popular OTT monetization models.

Subscription Video on Demand (SVOD)

This is the most popular model among OTT service providers. By opting for this model, the viewer gains access to the library of the movie at a certain subscription fee. This subscription fee may be charged on a yearly, monthly, weekly, or daily basis. This OVER THE TOP monetization model provides unlimited viewing experience to users. They can view any content on the platform until the subscription lasts.

SVOD monetization model was popularized by Netflix that used it for promoting syndicating content through their website. Today, Netflix also offers its original content along with syndicating content. Along with the best OTT Video Solution are a few major other platforms to adopt this model.

Advertising Video on Demand (AVOD)

This is the free OTT monetization model. You may ask then how do OTT video streaming platforms earn in this model? AVOD mainly thrives on advertising. The only investment they demand from viewers is their time and internet data. The free content is interspersed with advertisements. Viewers are treated to a variety of advertisements, sponsored content, as well as commercials while watching the free content. YouTube, Facebook, Vimeo, Instagram, AOL On, and FilmOnX are a few OTT services that have capitalized on this model.

Transactional Video on Demand (TVOD)

This OTT Revenue model is quite unlike AVOD, where viewers have to watch a few sponsored content in between the content. It is suited for viewers who prefer advertisement-free experience. Unlike SVOD, where the viewer can access the entire library of video content, here the viewer can only access the specific content he has paid for. This OVER THE TOP monetization model is ideal for extended content like some sporting events or special videos. Nowadays, YouTube is also offering offers a zero-advertisement free experience at a certain subscription fee.

Hybrid Model

This model combines any of the two Ott Revenue models described above. For example, a user subscribes a platform for free and gets access to a library of free videos. Like AVOD model, here the content may be interspersed with advertisements. However, some videos on the platform may be accessible after a subscription. This subscription fee may be charged as  per pay-per-view or a SVOD model. The OTT Video Streaming platforms offers a big library of free videos comprising syndicating content. However, its original content and premium syndicating content is accessible only after payment.

OTT REVENUE MODELS

OTT Revenue Models, build subscription revenue, grow your online entertainment business and reduce customer churn with Over The Top Video Monetization Services.
RGB Broadcasting understands the need of sound video content monetization strategies for the online entertainment and OTT industry.

If you are a Content Owner, Aggregator, Broadcaster, Telco, DTH or MSO player, RGB Broadcasting helps you improve your customers’ experience while maximizing your recurring revenue streams. OTT Revenue Models Services also allows you to choose from In-App purchases, pay wallets or your own billing solutions.

Once you conduct an in-depth review, you will notice that each OTT monetization model has its benefits. It is important to match them with your business objectives. If you are unable to make a decision, it is always important to partner with a trusted and experienced OTT Video solutions provider like RGB Broadcasting. The company has been helping clients by developing tailored technology and business solutions to its OTT clients. You can get in touch with the team today for more information.