The video streaming industry is thriving since viewers realize that online streaming platforms are more convenient and flexible in use. They are accessible on any device, including mobile phones, tablets, TVs, and desktop computers. Furthermore, viewers don’t need to stick to a schedule since a plethora of content is available at any time. As a result, we have a demand for online streaming platforms and original content out there.

    Such a demand creates multiple opportunities for content monetization. Companies and organizations create entertainment or educational content to attract viewers to purchase a subscription. They can leverage other revenue-generating modes, which we are going to explore below. Let’s begin.

    How to Generate Revenue with an Online Video Streaming Platform?

    When you obtain the right OTT platform, you have a rich monetization functionality, which allows you to generate revenue by advertising, subscriptions, or pay-per-view. Let’s explore these models.

    SVOD – Subscription-based Video-on-Demand

    When a content provider opts for SVOD, they require a recurring monthly or yearly fee for access to their video content. This is the revenue-generating model that many providers start their journey in the video streaming industry with.

    Experts predict the growth of SVOD platform subscribers since viewers tend to purchase several subscriptions for different services. This is how they have a wider choice of content to enjoy in the evenings.

    With SVOD services, viewers are not tied to long-term contracts, which allows them to easily cancel their subscriptions. For a business, SVOD services help build a community of loyal customers.

    AVOD – Advertising-based Video-on-Demand

    When a content provider generates revenue by AVOD platform, they usually allow viewers to access video for free. Instead of payment, people watch ad commercials during video playback.

    This monetization model is a win-win for everyone. Viewers get access to free original content, businesses still generate revenue by running ads on videos, and advertisers reach their target customers via online streaming platforms.

    Due to accurate targeting functionality, you save resources otherwise spent on showing ads to all people. Instead, viewers are divided into segments based on their interests, demographics, and other factors. As a result, an ad can be sent to viewers who are interested in a product or service advertised.

    The AVOD monetization model is booming since viewers have too many subscriptions. They cannot purchase all they want, and for this reason, they switch to ad-based platforms. They even don’t mind watching short ad videos during playback.

    TVOD – Transactional-based Video-on-Demand

    Transactional-based VOD is also referred to as a pay-per-view model. While a subscription gives access to all videos on the platform, pay-per-view requires a fee for each piece of content.

    When viewers don’t want to purchase a monthly subscription, they prefer one-time payments on TVOD platforms. Sometimes they want to watch a particular video. So, instead of buying a subscription, they pay for the video they want.

    TVOD platform providers can let viewers download content on their devices or, vice versa, give access only for several days.

    Hybrid monetization model

    Another way to generate revenue via an online streaming platform is to combine several monetization models described above, utilizing a hybrid approach. It allows you to give a choice to viewers so that they can decide which payment option is suitable for them. Moreover, you reach more viewers with several pricing alternatives.

    What else?

    Besides monetization models, there are other ways you can generate more revenue with IPTV/OTT video streaming platforms. For example, you can increase your customer reach with applications and CDNs.

    Applications will allow you to serve different user segments and their preferences. By offering applications for multiple devices, you bring more opportunities to get in touch with your service to viewers. You allow them to choose whether to watch a video on a smartphone or Smart TV in 4K.

    CDN is a content delivery network. It is a network of servers distributed geographically across the globe. It is what delivers content anywhere you want.

    CDN can help you expand your business to cover new markets or even become a global streaming platform. As a result, you reach more viewers and grow your revenue.

    Final Thoughts

    The video streaming industry is growing. It is in demand among viewers and businesses. Since viewers are switching to online streaming services and cutting the cable cord, the video streaming industry is going to grow. Researchers predict its thriving. A content provider has multiple opportunities to generate revenue and expand the business.


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