What Revenue Models are Available to OTT Service Providers

Worldwide, OTT platforms are prevalent.

FREMONT, CA: An over-the-top (OTT) platform is a subset of a media service. This is a word that is often used in conjunction with SVoD platforms—subscription-based Video-on-Demand services.

Over-the-top streaming services connect viewers directly to a variety of various sorts of entertainment via the Internet.

OTT streaming services disregard the cable, broadcast, and satellite television platforms frequently exert control over content distribution.

OTTs are also popular with individuals who seek specialized content and do not require access to many television channels. OTT services transmit specialty channels via the public Internet rather than a private network and proprietary hardware such as a set-top box.

Revenue models accessible to OTT providers:

There are various ways to monetize an OTT platform:

Subscription Video on Demand

This is perhaps the most widely used model of OTT monetization.

App’s users select one of the subscription plans, which generally run on a month-to-month basis. Almost all app material is made available to the viewer, except those users charge for separately.

Certain OTT platform providers offer streaming services that have integrated payment systems for the convenience of their users.

Transactional Video on Demand, or Pay per View

This is the utmost profitable method of monetizing OTT content, although it is often unpopular with users.

Users must pay for each item of content they watch in this case. This strategy is occasionally used in conjunction with SVoD—consumers can have a subscription running while still paying for specific content.

Occasionally, prices are discounted for subscribers.

Advertising Video on Demand, or Advert-supported

This revenue model presupposes that user can access all material for free. They are not required to pay for the subscription or individual pieces of content.

However, in exchange for the free material, users must watch advertisements within the application. Occasionally, advertisements are integrated into the content itself—the consumer watches a video that is occasionally halted to show a brief advertisement.

Hybrid models

Specific hybrid models of OTT monetization incorporate elements of two or three of the preceding types.

The most often used combinations are as follows:

The customer purchases a subscription that entitles them to the majority of the content. Certain premium materials are offered on a pay-per-view basis.

The user can purchase a regular membership to view material but will continue to see advertisements. Simultaneously, upgraded memberships are available that remove commercials and enable ad-free content navigation.