Netflix’s success inspired many businesses and companies around the world. A lot of them started their journey in the OTT world. A provider creates content and shares it via their OTT platform. What is so great about OTT platforms? The answer is one word – monetization.
OTT platforms give content creators more chances to generate revenue and be closer to viewers. How do they do that? Let’s explore the monetization potential of OTT video streaming platforms in this article.
How to Make Money with OTT video streaming platforms?
Monetization capabilities
OTT monetization is the primary goal of the video streaming business. Companies developing OTT platforms for video streaming implement different monetization capabilities into their solutions. For example:
- Ad-based platforms earn money by advertising. In this case, third parties usually pay a fee to an owner for running their ads on the platform. Viewers don’t need to pay anything for watching videos. They can access them for free but will watch ads instead. Several years ago, people were frustrated by all the ads that interrupted a program playback. But today, they don’t mind watching them. Ads usually mean that a platform doesn’t charge a fee.
- It is the most popular monetization model thanks to such video streaming services as Netflix or Hulu. People pay a monthly or yearly fee for access to content on the platform. And they get unlimited access to videos. Subscription-based platforms give a lot of convenience to viewers. They can watch as many videos as they want without interruptions. However, there are too many subscription-based services in the market. That’s why people get tired of them and start canceling their subscriptions. They turn to ad-based platforms as they don’t charge a fee.
- Pay-per-view. It is also known as a transactional-based monetization model. In this case, people purchase access to the video content they want to watch. Other videos are inaccessible.
What is more, many OTT solutions allow providers to combine money-making modes and use a hybrid monetization approach. For example, you can let viewers choose how to access content – whether they want to get unlimited access with a subscription or purchase each video separately. It is up to the provider to decide.
CDN
CDN is a Content Delivery Network. CDN software can help you reach people around the world. It will ensure low latencies and, consequently, a better user experience.
By going worldwide, you can increase your revenue immensely. You will be able to reach people from different regions and even countries.
Remember about adding subtitles in various languages to your videos, as you will probably have viewers who don’t speak your language. And think about localization – that is adapting content to the cultural peculiarities of other countries.
Applications
OTT platforms can be accessed from any device. It is the reason why people love them. Viewers can watch their videos on smartphones, iPhones, Smart TVs, laptops, tablets, and gaming consoles. They don’t need to especially buy a new device in order to access a video streaming service. They can use those they already have.
As a result, OTT applications allow people to watch videos anytime and anywhere they want. It gives them flexibility and convenience.
Final Thoughts
OTT platforms are money-making because they are convenient for viewers. And brands can share valuable information with them. They can get closer to customers and monetize content. OTT platforms have everything to help businesses achieve their goals.
If you want to create your OTT video streaming service, we recommend you contact Setplex. They can offer a proper solution for your company.
