25 May, 2022
How OTT platform make money

OTT Business Model in 2022 – How OTT Platforms Make Money?

Are you excited to know about how OTT platforms earn money by streaming a variety of content across devices worldwide?

OTT streaming has given a route to the new at-home environment giving an obvious gain. Seeing the shift of eyeballs to digital entertaining horizons has made people curious to know, how the OTT platform work in minting money out of it like great balls of fire?? Today, we’ll be unleashing the key tipping point that’s making a big difference, flipping the world of videos…

Yes indeed… It has imagined our collective imagination on uncountable ways that entertainment can work and earn a large sum of revenue.

The new-age audience is in favor of choosing internet streaming platforms. It is because a need for fresh as well as unique content constantly stimulates the interest to explore more. As a result, stories with a wholesome experience are ensured to be enjoyed within the comfort of homes.   

Let’s see how the OTT platforms capitalize on the ongoing shift in consumer trends & set to benefit from the pandemic…

What is an OTT Platform?

The over-the-top platform is what OTT stands for. It refers to a method of transferring content through a high-speed internet connection, whether it is in the form of video, music, or other types of content. Rather than delivering in a conventional manner through broadcast networking companies, or cable operators, making money over OTT has introduced a new way to showcase video or audio content.

what is OTT platform

Movies, TV shows, or daily soaps have got a new dimension where businesses can provide varied kinds of services, which people love.  Consumers get direct relay delivered to their smartphone, laptop, and other connected devices. Indeed it serves to be the best alternative to restrictive & pricey satellite options. 

No wonder why video streaming services shook up and every year they hit the mark with further massive investments by big shots like Netflix, Amazon, Hulu, Disney+, HBO Max, etc.  

Let’s take a look at its benefactors…  

Scroll down… 

What are the Benefits of An OTT Platform?

It’s difficult to find a teenager these days who hasn’t been exposed to some type of OTT media. With no doubt, we can say over-the-top technology’s dominance has emerged & proved to be the best… One gets easily answered on how to earn money by creating the best online video platforms and striking it rich perfectly… 

According to research, Asia-Pacific’s M&E market is expected to flourish in the forecast period (2021 – 2026) & reach the highest peak of 7.2% CAGR 

Over time, as OTT grew increasingly popular, numerous sorts of OTT services flourished all over the market. Furthermore, new services like AT & T, ESPN, Turner Sports, and Crown Family Media Networks have gained a lot of traction in the United States, fueling the market’s expansion.

How OTT Platforms Earn Money?

Here’s some following that causes the explosion of OTT content:

1. Attractive Content at a Reasonable Price

OTT platform content is considered more creative, original, new, and accessible in comparison to traditional media. Not just that, but consumers do not have to spend money to receive a subscription.

Even if your viewers watch a small part of the content offered, it still serves to be a good deal.

2. Uniqueness in the Over-the-top Media

To keep up with the growing consumer base on OTT platforms, production firms, film studios have been generating content exclusively for those platforms. Like any other top video streaming platforms such as, Disney+ and HBO Go, you can also stream content & earn money that was previously only available on television.

3. Viewing on Multiple Devices

OTT platform content can be seen on the go, while compared to non-OTT outlets like cable TV. While OTT videos or audios may be viewed on TV sets, if your wearable device has net access, you can also watch it on PCs, laptops, & mobile devices. Some gaming consoles too, in reality, support OTT.

4. Transparency and accurate data

OTT is a way for content creators & streaming platform owners to acquire more accurate data about who is watching what material, their age group, hobbies, and so on. This allows them to customize their watching material to a diverse target audience.  Earlier, such additional features weren’t accessible. 

Apart from these several factors, growth drivers of global over-the-top solutions in the market include an increase in demand that are offered in different hotspot regions, either locally or internationally. In fact, most of them indicate a hiked revenue due to subscriptions, adverts & OTT app based services.

With that, a high on demand for live streaming channels has boosted more in generating money on a rapid note.. This has positively reflected the offerings sufficed by service as well as platform providers..

“You should be the pebble in the pond that creates the ripples for change”

 – Tim Cook, CEO Apple

Tim Cook

Like the quote indicates, let’s keenly identify how top OTT-business platforms make money, & set themselves as standalone players…

How OTT Platforms Earn Money?

Come what may, perhaps nothing can change as quickly or as dramatically as the way people consume video content. 

Subscriptions to OTT services are typically affordable, and some are even offered free. Positively, it generates a lot of profit for customers. It is significant that media-consuming such as TV viewership,  social media interactions, & lifestyle-friendly apps have led to its biggest impact. And that’s why, it has heightened platforms, having a great volume of traffic. 

As a result, these online video platform have a number of options for monetizing their material. Some of them are listed below:

1. Video Advertising Networks

Video Advertising Networks

Joining a video advertising network is one of the quickest methods to how OTT platforms cash it all from your OTT (VAN). VANs help you to connect with advertisers who are looking for an ad space to earn a shelling leveraging your streaming domain.

2. Direct Advertising

Direct Advertising

You can control the types of ads that appear on your OTT platform with a direct advertising model. To accomplish this, you’ll need to create a custom ad video streaming server to control the ads that appear on your platform. This way, you can have complete control over price negotiations & set your rates. 

3. Best Sponsorship Deals

OTT sponsorship deals work similarly to television sponsorship deals. In that, a business pays for the right to advertise on a specific piece of content. There are a lot of ways where streaming services make money to show their content in the form of banner ads, display, or launch screens.

4. Various Monetization Models

However, when you tend to research how OTT platforms earn & produce a major revenue in the same manner; there are many numerous ways. These have a distinctive edge when it narrows down to accessibility & money-making potential in comparison to other media. They are as follows:

  • SVOD 
SVOD Model

One of the most popular ways that OTT makes money is well-known by people’s all-time choice. It is very well understood that to monetize a video-on-demand network,  it is quite necessary to have a subscription-based video-on-demand model (SVOD). This works by charging users with a monthly subscription for accessing your content.

Read Also: How Much Money Does Netflix Make?

  • AVOD
AVOD Model

The ad-supported video on demand (AVOD) model is another great approach to monetize your VOD business. Unlike SVOD and TVOD, where viewers pay to watch your content which is of any sort, the AVOD model relies completely on advertising for revenue. Your users don’t have to pay anything.

  • TVOD
TVOD Model

Transactional video on demand (TVOD) is a monetization model that allows consumers to pay per view with two choices. Either, they can go for an on-time purchase obtaining permanent access to a piece of content, or they can rent out a piece of content for a lower price than buying it but with a limited time period of access. 

  • Hybrid Model
Hybrid Model

A combination of two or more of the above will apply when hybrid monetization is chosen. Like how free videos & that aren’t served could help streaming platforms earn big money, it can be well associated in the case of subscriptions, or transactional. Platforms can make a lot of money with those combos.

  • Multi-Screen Model
Multiscreen Model

To some extent, this model is similar to the subscription model. These OTT apps recognize that a single consumer may own multiple devices. As a result, they enable users to access the movie library across all of their devices such as iPad, tablets, smartphones, etc with a single subscription on the go. 


 
Do you want to create an profitable OTT channel for your brand?

Which Model is the Best Way to Make Money in OTT?

Each of the models listed above has worked for some firms while not so much for others. There is no clear picture of Sureshot winners or mediocre, who try these solutions… All it takes is to establish which model will work aptly for them, which are in accordance with their business goals. Each publisher must examine their monetization strategies and comprehend ways of goal setting by analyzing demographics, and target users.

Which Model is the Best Way to Make Money in OTT?

All you have to do now is choose a relevant OTT solution and start making money. All thanks to an experienced development team that is much needed as they have the technical know-how of producing a fault-free & innovative product for many platforms.

Summing Up

In the future, OTT providers are projected to offer new OTT entertainment that consists of additional live as well as on-demand streaming channels. For that matter, some are also available for free… This significant transition will grow in all means showcasing massive growth. Broadcasters in the United States & other countries team up with multichannel video content distributors to provide ready-to-package versions as OTT offers, fueling its market growth.

Furthermore, as demand for material has increased dramatically, a growing number of OTT platform providers are making some of the existing content available for free and launching new content on their platforms. Also, viewers are live streaming concerts, virtually connect through Zoom lectures, attend business meetings, and be a part of online book launches, which is likely to be a significant factor in making up for wholesome revenue. And that’s a win-win situation for both!

If You Already Have An Idea About Starting An OTT Channel With Multiple Revenue Models, Schedule A Free Demo And We’ll Help You Implement It!

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Dwarakesh is Video Monetization & OTT Platform Expert at CONTUS VPlayed. Interested in digging deep into video/audio streaming media tools, and Love to blog, discuss and share views on the legal IPTV services' latest technologies tips, and tricks. He's also passionate about photography loves to capture the pure essence of life.

31 Comments

  1. Ellie Steve Reply

    Its really useful information for the audience to know about how ott platforms make money with its complete business strategy.

  2. Zoey Malli Reply

    Good to know about the video streaming models and overview about how do ott platforms make money with various structure.

  3. Victoria Reply

    I want some details about how ott platform earn with different varieties of video streaming content and how its impact their revenues.

  4. Nova William Reply

    Hi, I want to start an OTT for my media based contents. So, am here to know about how does ott make money and how to make it for my media. Thanks

  5. Stella Mary Reply

    Hello Team, We are running a YouTube channel with plenty of videos. Now planned to enter the OTT market with relevant features. I need some suggest for my channel and curious to know about how does ott platform earn money with their contents and try to make it for my channels too.

  6. Grace Stephen Reply

    Information one, Is it possible to know about the revenue models for the branded services and how ott makes money with various models.

  7. Russel Holey Reply

    Great article with proper sources to read how does ott earn money and its works. Can you please update more about how world famous ott brand earn enormous money. Thanks

  8. Lucy Reply

    Can you please update indepth detail about how movies and producers make money through OTT platform by releasing on it. How much share they get it?

  9. Naomi Reply

    Hi, Need info on how ott platforms earn money by streaming same type of content across the different devices and countries?

  10. Elena Reply

    What type of contents generate more money and which is the top earning platform across the region? how its profit data calculated worldwide.

  11. Anna Reply

    It’s a really informative blog, I really do not have any idea how ott platforms earn money, Now it’s completely clear, I tried to start our services with this money-making strategy.

  12. Tobias Reply

    We are producing movies and releasing them in theaters, Now planned to stream directly on OTT, Can you suggest which is the better option for OTT to make enormous money. Thanks

  13. Ben Radden Reply

    Great one, I want to know how to do niche-specific ott platforms to make more money compared to the traditional ones.

  14. LenaSteve Reply

    We are planning to launch our services very soon this year, Moneymaking is a major strategy for us, While reading your blog about how the ott platform earns clear our queries regarding this. Cheers

  15. Felix Jordan Reply

    Please, I want to know all that is required to set up a streaming OTT channel, Also want to know how does ott platform earn money from the business over here.

  16. Walter Reply

    I would like to stream my content so I’m inquiring about the following technical functionalities like CDN, VOD, SSL, Security, analytics, etc, One of the major things is the revenue part, You provide a clear part of how does ott platform earn money with its strategy.

  17. Günter Reply

    Hi, I have a few questions to ask about your product to start my own streaming services with leading technologies and revenue sections to know about how ott makes money.

  18. Hannah Reply

    It’s a great article to know the complete information about how does ott earn money with its business strategies, It is must-know information for the business owners to implement on it.

  19. Christina Reply

    We would like to launch an OTT for Live TV and VOD in France with local content for all screens. Please send demo access and curious to know how ott earns money for the services.

  20. Gisela Reply

    Do your OTT include an EPG for the end-user? what are the revenue stacks you’re offering, It’s similar to how famous ott platforms earn money by their stacks?

  21. Alexander Reply

    Hi, I am specialist of Digital Streaming Solutions at Cello Media. Besides regular services, we are interested also in online streaming activities. Currently we are looking for the perfect solution and need supportive guide on how ott platforms earn money, with its higher end features supports like content delivery, licensing support. We can discuss other details over the conference call. Thanks in advance!

  22. Dorian Reply

    I’m interested in the VOD side I’m a freelance documentary maker, journalist. Currently using vimeo for monetizing the content. I want to know about how ott platforms make money with its different types of strategies and guide to implement them.

  23. Finn Reply

    Hi, We are looking for the perfect overview on how do ott platforms make money and what are the different types of strategies for this. can you provide a support for this.

  24. Jacob Reply

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  25. Nikolas Reply

    I want the partnership to provide a first-time opportunity for low-income communities to enjoy digital terrestrial television alongside internet service for a few bucks when compared with the cost of cable TV service providers. For that i need some relevancy info on how does ott platform earn money and simple steps to implement in it on our project.

  26. Timeo Reply

    I want to stream movies and series in my video platform i didn’t have any idea for the business and revenue strategies. Need experts views on how ott makes money and suggestion to use it on our platform. Thanks

  27. Albina Reply

    I am contemplating the possibility of becoming an successful video streaming provider with perfect monetization models. Can you please help us to be more successful on revenue base and how ott platforms earn money for their business. Thanks

  28. Carmen Reply

    Looking to build netflix style platform for the roku devices, For that i need some inputs about the technology, delivery and revenue models. Which is the right method for ott platform to earn more money.

  29. Emilia Reply

    Hi, I am interested in the OTT streaming option and want to see a demo on it. I have plans to build an app for our services, Kindly share some details about the cost factors and ways to generate money from the OTT platform.

  30. Isabella Reply

    Hey, Its a media company we are looking for the perfect services to earn money through our video content. OTT is the right choice to make 4x money by streaming the video content. Need to discuss on this. Thanks

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