Online video streaming is booming with the number of popular streaming models gaining popularity, such as Netflix, etc. If you’re looking to start a video streaming business, considering the right revenue model matters.
Thus, this blog will be your guide to help you choose the ideal online video platforms monetization models.
Top 4 Revenue Models To Consider For Your Online Video Platforms
1. TVOD
- Transactional video on demand is known as TVOD.. It is the process of letting users access your content on a one-time basis.
- The users who visit your online video platform often will not want to access all your content. Few users would prefer to stream a specific content in such a condition they won’t find it feasible to pay for a whole library. Thus it is better to charge a one-time fee for users who wish to access particular content.
- According to Statista, Pay-per-View (TVoD) revenue is projected to reach US$10,423m in 2022, and the number of users is expected to reach 895.8m by 2026. ’’
- When you visit a yoga website, you don’t have to access all their videos. You can choose from videos such as fitness videos and nutrition videos. There will be a fee attached to access them. Another example is iTunes, Google Play, etc.
2. SVOD
- Subscriber video on demand is known as SVOD. It is the process of paying a recurring fee for a period of time chosen.
- This is one of the popular forms of monetization model in multiple online video solutions today. This model is gaining popularity as users can pay a recurring fee to access an unlimited content library based on the timeline chosen.
- Deloitte reported that 70% of GEN Z households in 2017 had a paid streaming subscription. Meanwhile, 68% of millennial households and 64% of Gen X households had a subscription. ‘’SVOD timeline could be weekly, monthly or even yearly. Payment will be made based on this decision.
- Statista revealed, ‘’In the Video Streaming (SVoD) segment, the number of users is expected to amount to 1,486.8m users by 2026.’’
- One of the most popular examples is Netflix, Amazon Prime, Hulu, etc. You can easily access all of the new and original content libraries the streaming platform offers with a monthly fee. You can access the content anywhere, anytime, and on any device with a single sign-in. SVOD is a popular choice if you have more bulk content to offer.
3. AVOD
- Advertising-based video on demand is known as AVOD.. It is the process of driving revenue based on advertisements.
- Previously, ads were shown on TV, but this method wasn’t as successful for two reasons, one being the ads didn’t fit the user’s needs, and second due there was no tool to measure the ad performance. Now with video streaming platforms, both these issues are taken care of. Advertisers can pay a fee to online video platforms like yours to display the ads.
- You can charge a reasonable fee for the same and display their ads either pre-roll, post-roll or even mid-roll. With the use of analytics, the ads can be tracked to understand how well the ad is performing. The best part is ads will be viewed since most ads are customized based on the user’s interest.
- An online source revealed, ‘’Roughly 67% of homes with WiFi have subscriptions to streaming services like Amazon Video and Netflix, and ads served over these kinds of services and devices yield extremely high completion rates, around 98% in fact.’’
- You can check any of the popular streaming platforms you stream today. As you watch your movie or Tv shows, seeing an ad that taps your attention makes you want not to skip it and instead learn more about it. This technique benefits the advertiser as well as the video content owner like you. The best example here is YouTube.
4. Hybrid
- Hybrid models are a combination of all the above revenue models. You can offer TVOD/AVOD together or SVOD and TVOD together based on your content choice.
- With the changing market, users prefer to have multiple options to make their decision. For instance, if you create a VOD platform, you can use a TVOD/SVOD hybrid model. This means that your user can either subscribe to a monthly service or pay rent or download a particular movie.
- However, if you’re a business that sells fitness content or something relevant to this, you can consider the TVOD/AVOD model. Here users can pay the one-time fee to access a video, and you can engage with relevant brands to showcase their ads on your website.
- There are multiple examples of Hybrid models such as Amazon Prime, any educational video content brand, etc.
Conclusion
Creating the best online video platforms with the right revenue model drives better income for your business. According to FinancesOnline, “Digital video viewers will reach 248.9 million in 2022, an increase of 20 million from 2018.”
Now that you have an understanding of which revenue model to consider, it’s time to focus on launching your video hosting platform.
It is better to seek the assistance of an online video platform provider as they can enhance your platform as well as scale when required. So, which revenue model would you first choose?
