Sat. Aug 15th, 2020
video monetization services

All you need to know about monetizing VOD on OTT platforms

The days when watching television or related content used to be a herculean task are

The days when watching television or related content used to be a herculean task are gone. Using long wires attached to antennas in the ’70s to connecting thick black cables hanging all over the place in the ‘00s is now yesterday’s word. 

The new concept of the OTT or Over the Top is the latest service, which has made watching television or content online easier like never. In recent years, the industry to media has undergone some major and very significant changes which have changed the whole pattern of media consumption.

Everything you need to know about VOD

VOD or Video on Demand is a system of video media distribution, allowing access to video entertainment to users without letting them depend on the traditional device of video entertainment. 

With more than 17.5 hours being spent on OTT every week by the users, all the services offered on it gain popularity. Over the years, seamless entertainment provided to the users makes the services offered on OTT an even more viable option. 

However, OTT companies can channelize their profits by using video monetization services. Before understanding how it can be done, it is essential to know the different types of VOD. Broadly, VOD can be classified into three types- 

  • AVOD (Advertisement video on demand)
  • TVOD(Transactional video on demand)
  • SVOD(Subscription video on demand)

How can OTT companies make VOD their wall street?

The above mentioned three types of VOD can be used either simultaneously or by pairing by the OTT companies to monetize them in their favor.

  1. AVOD – OTT companies like YouTube or Netflix make use of advertisements as their finance engine. They charge from the companies to advertise them before or during the videos. They even sometimes bundle this feature by charging monthly or annual fees from customers to upgrade the services. The advertisements are mostly based on the cookies of the customers, which they tap by making them sign in their Google or social media accounts.
  2. TVOD – This is the most straightforward method used by OTT companies. Under this method, the user has to pay each time they want to watch a video. Otherwise, widely known as pay per view (PPV) or pay per download (PPD), it results in the most lucrative model. When your user is highly motivated to watch your show or content, they willingly pay the price.
  3. SVOD- This is the most loved model by the users. Under this model, the user needs to pay the subscription fees once on a weekly/monthly/annual method, after which they can enjoy a hiccup-free entertainment service. It is the most successful and popular method for OTT companies around the globe.

Final thoughts

The increasing demand for seamless, affordable, and entertaining content has been on an upward trajectory since its nascent stage. The OTT companies can earn the right profit margin while not putting all the burden on the user by using some lucrative models, some of which, as mentioned above, as their OTT managed solutions.

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