The demand for streaming services among viewers is surging, with statistics revealing that the average U.S. household subscribes to 3-4 streaming platforms. Furthermore, the market is witnessing a proliferation of streaming services, as companies and organizations recognize the revenue-generating potential of video content delivery and are launching their own streaming platforms.
Content providers and broadcasters have numerous avenues for generating revenue through video streaming. Firstly, they have monetization models, such as OTT advertising, subscriptions, and rentals. Secondly, they can attract more viewers by offering applications for multiple devices and implementing a CDN with a global reach. Additionally, providers can introduce innovative features like an OTT recommendation engine to enhance viewer engagement.
Let’s delve into the monetization opportunities of OTT streaming platforms more.
Generating Revenue Through an OTT Streaming Platform
#1 Monetization models
In the video streaming industry, content providers can leverage the following business models: AVOD, SVOD, TVOD, and hybrid.
- Advertising-based video-on-demand (AVOD): viewers can access content for free, but they watch advertisements during video playback. Advertising is how content providers generate revenue. They run ad commercials on videos, allowing advertisers to reach their target viewers.
- Subscription-based video-on-demand (SVOD): viewers purchase a recurring monthly or yearly fee for access to a content library. They can cancel a subscription at any time.
- Transactional-based video-on-demand (TVOD): every piece of content available on the platform requires a fee. When a user purchases one video, the rest of them stay inaccessible.
- Hybrid video-on-demand: content providers combine several monetization models described above.
However, creators can use other elements to influence their revenue growth.
#2 Applications and Content Delivery Network
Content providers and broadcasters can boost their income by growing the number of viewers they reach. Applications and a content delivery network (CDN) empower them to provide a better quality of experience to people, retaining them on the platform.
- Applications allow you to cater to a wide range of devices and platforms, ensuring a seamless user experience. By accommodating diverse device preferences, providers can enhance service quality.
- A CDN delivers content anywhere in the world, growing your audience worldwide. It ensures a smooth video delivery to any place, providing an uninterrupted playback. As a result, broadcasters can reach more viewers globally, increasing the revenue flow.
#3 Quality of Experience (QoE)
Enhancing the viewer experience is pivotal for attracting and retaining audiences. Another way to attract viewers and retain them on the platform is by implementing new features, such as a recommendation engine.
A recommendation engine provides video suggestions to viewers based on their viewing history and behavior during content consumption. This allows providers to engage people with their platform more effectively so viewers spend more time and investigate the content library more deeply.
#4 Enhancing content
Content is king. It is what viewers are searching for in the first place. Providers and broadcasters might think about enhancing content so that viewers like it more.
Use analytics to understand what videos are popular among viewers and what are not. Another way to create better videos is to communicate with people, identifying their preferences and needs.
The primary objective of video streaming services is revenue generation. While monetization models are fundamental, content providers have an array of additional tools at their disposal to bolster income. Introducing applications, utilizing global CDNs, enhancing the quality of experience, and improving content are all means to enhance the streaming service, ultimately leading to revenue growth.