To maximize content monetization in OTT (Over-The-Top) video platforms, competitors of traditional television, you must take into account the characteristics of the three existing monetization strategies and which one adapts best to your project.
At JUMP Data Driven, a business data management platform designed specifically for video service players, we help you discover which model is ideal in your case to maximize monetization.
What is video monetization?
Video monetization is the process of creating videos that are shared online through any platform and generate revenue.
After fulfilling a series of prerequisites, depending on the network used (YouTube, Vimeo, Instagram, Facebook, etc.), revenue is achieved through different channels: advertising, subscriptions or direct transactions.
In this sense, OTT platforms are sites that host online videos with diverse content. Monetization of these products can be achieved through a monthly subscription (SVOD), payment for a specific product (TVOD) or accepting material with advertisements (AVOD).
For this to happen, the material must be of quality, unpublished or attention-grabbing, so that users will either approve ad-supported videos or be willing to shell out their money for a subscription.
Types of video monetization
Video creators manage to monetize their products through different digital platforms, which have certain marketing rules. Every time we watch a YouTube video, sit down to watch a Netflix series or rent a Prime Video movie, we are making content creators get paid for their work. If you’re a content creator or manage a video playback service, you’ll be interested to know what models exist to maximize monetization.
AVOD
Stands for Ad-Based Video on Demand. It is a monetization mechanism that is characterized by having free videos, with ads or commercials.
SVOD
It is defined as Subscription Video on Demand. This monetization system is distinguished by providing video content through the adherence to a paid subscription. The fee can be monthly or yearly.
TVOD
In this case, we refer to Transactional Video on Demand. It is the simplest transaction to maximize monetization. It involves paying a one-time fee for a given content. For example: the rental of a movie or access to a particular soccer match.
Keys to maximize monetization of your video service
To maximize monetization of OTT content, the quality and interest of the content for the audience must be taken into account. The content should be hosted on a fast and easy-to-use platform.
This will allow viewers to be satisfied with the service and continue to use it over time.
Some aspects to take into account are:
- In the case of AVOD content, the more views the content has the more money it will provide, attracting a greater amount of advertisers.
- On the other hand, in SVOD contents managed through subscriptions, users must be loyalized.
- Finally, in TVOD content, special emphasis should be placed on the originality of the content and its temporality, to achieve maximize monetization.
The world of digital content consumption has changed monetization strategies. A clear example is traditional or cable television, which are gradually being replaced by OTT platforms content. The monetization of these new products is constantly evolving and setting new trends in the industry.
