Whether you are in the media and entertainment business yourself as a browsing for new options content creator. Or are searching for new opportunities for your company already operating well in the media industry. Obviously, it is always wise to keep your hand on the pulse. Especially when it comes to new ways of extending financial profit from the materials that you already have in store. With a new year of commercial endeavors already in full swing, check out the most profitable OTT content monetization models to stay on top of the news.
What is content monetization
As we know the world revolves (among other important things) around money. All of our career choices are dictated somewhat in the sphere of making as much of it as we possibly can with the OTT and content services and products we offer. Not only to keep it for personal spending but also investment in the future of our businesses. The same thing goes for making profit from the materials that you share with the broader audience. So as simple as it is. OTT content monetization is all of the actions we undertake to make some (hopefully good) buck for our overall efforts.
How to start monetizing your content with OTT solutions
You will know the time is right to go a step further with your OTT conversion rate. When the typical, free solutions such as content monetization on Youtube or the ones you are currently using are not enough. Regardless of your expectations, the process of preparing the assets you already have is a necessary but pretty simple step.
What kind of OTT content can you profit financially from
When choosing OTT as your own primary solution, there are pretty much no limits regarding the published materials. Well as long as they are properly labeled and grouped (ex. appropriate for a certain age group). The freedom of choice is something that you would be lacking with the broadly available free platforms. The only obstacle could be the restrictions put onto sensitive materials. Fortunately, there are a lot of different ad blocks and options to combat that without any problems. It’s as easy as making sure about that with your OTT service provider.
Prepare the best content to monetize
Properly choosing the materials that you want to showcase and how you want it to be done is crucial when setting up a new access offer for your audience, especially the one you can gain. Investing in a structured marketing strategy and setting up your own branding will help you boost the reach of your solution and increase the chances of higher digital content monetization.
Choose the most profitable places to share your materials with appropriate OTT platforms
As we have mentioned before, bringing a new option to the recipients of your video or audio materials can be more than rewarding in the long run. Making sure that you make the right choice regarding your OTT service provider is crucial for the success and in the end the return of your investment. Choose someone who is well acquainted with your industry and most importantly with market-proven solutions and a strong record of previous work such as our daughter company Better Media Solutions with their own white-label OTT platform Better Media Suite.
Top OTT content monetizations models for your business in 2023
Without further ado, let’s get straight into the topic that we were heading towards from the beginning. The environment surrounding the landscape of available solutions is constantly changing with every new technological advancement. Keeping up with such challenging tasks as an OTT content provider without an appropriately fitted and structurally built monetization model is a hard task. So here are the ones that you should focus on while planning your next investment.
FAST
Free ad-supported TV (FAST) is now one of the hottest trends in our industry. It is only natural that we will be hearing a lot about it. That’s for a good reason. The acronym meaning free, ad-supported streaming TV describes a service that is a perfect solution for users who do not want to pay for, many times, expensive subscriptions on multiple platforms.
But why is it catching so much attention especially right now?
- It is a new form of content delivery that has a lot of potential in regard to different monetization.
- With the enormous amount of subscription-based streaming services, the audience is currently searching for new ways of content enjoyment.
- FAST’s bring back the so-called linear TV feel but in a refreshed format.
- With appropriate expertise, they are easily applicable to various platforms.
This option can also be extremely beneficial to the suppliers as the seemingly free service generates profit through ad insertion and may reach a greater audience.
AVOD
The definition of AVOD, meaning Advertising-based video on demand which entails that access to content is “paid off” by the viewer’s watch time of advertisements before and throughout the material. It could be compared to the model we are used to when enjoying regular TV. The whole revenue is generated simply by extending the reach of your audience to ad providers.
According to the data gathered by Digital TV Research global AVOD reach will increase up to the point of $91 billion of revenue by 2028.
SVOD
In contrast to AVOD, in the case of SVOD platforms (Subscription video on demand) the utilized model revolves around the agreement between the company and the customer regarding recurring time-based payment for provided premium SVOD services.
There are many additional benefits that arise from this type of solution. Some of them are a stable revenue generation, the provision of content to a secluded audience grup and building higher loyalty to the brand.
TVOD
Transactional video on demand on the other hand offers more freedom to the viewer/listener where they choose exactly what material they want to enjoy and grant payment for only the one chosen format by pay-per-view.
With this type of solution, the audience is more encouraged to invest in a particular piece of cultural entertainment
Hybrid OTT models
The other most optimal choice is the different combinations of all of the solutions listed above. As the data provided by Statista showcases a substantial growth in popularity of these types of mixed models among the most popular platforms. The conclusion is that SVOD supplemented with additional AVOD gathers more and more supporters each day.
The question is then, why not reach for the benefits of multiple options and profit form all of them? AVOD vs FAST, SVOD vs AVOD, TVOD vs SVOD, how about all?
Summary
We expect this year to be extra exciting for OTT content monetization revolutions in our industry. All is left is to enjoy the ride and invest in next-gen technical solutions. The ones that will bring you closer to the best results possible. We are always here to support you in that journey.
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