What type of content can you monetize?
The world of OTT (over-the-top) is gaining more and more video content creators from different industries. Studies and reports claim that by the end of 2022 online videos will make up more than 82% of all traffic made by consumers on the Internet (Cisco). Some video content creators have been making a profit from their video content through monetization.
A common way to monetize video content is to publish it on YouTube. However, to make a lot of money there, one needs a significant number of views. What’s more, according to YouTube policy you need to have at least 1,000 subscribers to start earning money. That is the way many creators make a profit from ads. But what about other industries that produce video content? Many broadcasters, football clubs, and personal trainers are investing in OTT platforms to allow their audiences to access unlimited video content while creating opportunities for themselves to monetize it. There are different types of video content that you can monetize and a few ways to do it!
What is Video Content Monetization?
Video content monetization is the acquisition of revenue by providing online video content on any platform through subscriptions, ads, or direct transactions. You can make money in a variety of ways, for example, users can pay for one-time access to your content. That could mean buying access to the latest movie release or sports event.
Profit can also be generated through advertising. It is very common among creators on YouTube, where access to their videos is free and they earn money from ads. Many VOD (video-on-demand) platforms also use this model. Users can enjoy access to TV shows and movies without buying a subscription, but they have to face the fact that they will have to watch some commercials while watching their favorite TV series.
And finally, the subscription model is used by many top video platforms. Here a user can enjoy access to an unlimited number of movies and series.
However, keep in mind that the models do not exclude each other. Sometimes paying a subscription to a particular platform does not mean you will avoid the ads. Some companies use both models! Below we describe precisely what video content you can monetize.
Types of video content you can monetize
Video-on-demand (VOD) is a technology for delivering content that allows users to watch their favorite movies or TV series at any time and from any device. The VOD platform will help you deliver your valuable video content to your target audience and build an engaged community. There are a few monetization models you can choose from depending on your target audience and other factors. It includes paid subscriptions, advertising, or pay-per-view access to a single video
Streaming events online became popular, especially during the pandemic. People were unable to leave their homes and watch sports games or go to the cinema or theater. That created new opportunities and soon many companies found themselves in this new reality. Companies made it possible for users to allow them to participate in many online events! People longing for entertainment, sports and culture were willing to purchase access to such events. A popular monetization model for streaming live events is Pay Per View, which is one-time access to selected video content by paying a fee.
Access to TV channels on video platforms is a fairly new but now common reality for cable operators. Users can enjoy access to a variety of TV channels and watch their favorite shows anytime thanks to OTT solutions. Many TV channels provide access to their OTT platforms through the purchase of a monthly or annual subscription. Some broadcasters offer access to TV channels completely free of charge. Unfortunately, this option often involves a lot of advertising. At least the user does not have to worry about additional expenses! In fact, the choice of monetization model depends on the provider and their business needs.
AVOD (Advertising-based video on demand)
Advertising-based video on demand (AVOD) is one of the monetization models commonly used in the OTT world. Unlike TVOD (transactional video-on-demand) and SVOD (subscription video-on-demand) is free to consumers. So how does it help OTT platform owners make revenue? Through advertising! Users can access free video content like on YouTube but are forced to watch ads. We should remember that some companies choose to use several monetization models on their OTT platforms. Users, despite paying a monthly amount for subscriptions, still have to watch ads.
An important aspect to keep in mind when deciding on AVOD as a monetization model is the delivery of ads and video content in high quality. At Insys Video Technologies, we enable service providers to insert targeted ads into video streams without compromising the quality of service thanks to AWS Elemental MediaTailor. In addition, the ad content should be closely related to the video topic to attract the user’s interest. Broadcast-grade video quality combined with relevant ads keeps viewers involved and increases the advertiser’s profits.
Pay-Per-View is another monetization option that helps video content creators and broadcasters with transmission rights to generate revenue. PPV is used especially during major sports events or movie premieres, where users are willing to buy one-time access to video content by paying a fee.
PPV allows video content providers to charge extra for premium content available only on their platforms. For users, it is a chance to get to know your platform before they decide to pay for a subscription. This is a great monetization opportunity if you are providing high-value content that your viewers will pay to access.
SVOD (Subscription video-on-demand)
Subscription video on demand is one of the most known models of monetization in the OTT world. It is the opposite of AVOD as it drives revenue from the viewers’ subscription payments, not from ads. It is similar to traditional TV as you pay a regular fee and receive unlimited access to the video content. However, users can watch the content anytime, anywhere, and on any device that the application is available in.
The benefit for the users is that they gain the experience of watching their favorite video content without any ads. Platform owners can also decide whether the payment fee for their video library should be paid weekly, monthly, or annually. It is a prevalent model and it is predicted to keep growing. According to the research, SVOD will reach 450 million subscriptions in the US by 2026.
The other advantage is that the platform owners can simply predict their profit. Having fixed rates allows OTT platforms to maintain a stable and predictable amount of revenue each month. The most popular platforms based on this model are Amazon Prime Video, Netflix, HBO max, and Disney+.
The OTT market continues to grow, with more and more video content creators who are ready to turn their video content into profits! The development of technology and new functionalities make it possible to monetize different types of video content: video-on-demand, live events, and TV channels. What is more, we can choose from several monetization models based on our business needs. This includes AVOD (Advertising-based video on demand), PPV (Pay-Per-View), and SVOD (Subscription video-on-demand). If you would like to find out more about video content monetization download our free ebook and start monetizing your video content today!