An OTT platform is a buzzword in the video streaming industry. Who hasn’t heard of video streaming platforms like Netflix or Hulu? They are quite popular among viewers. People love them for the content they share and the capabilities that traditional television can’t offer.
But the most exciting thing about such video streaming services is that they generate a lot of revenue. They have millions of subscribers around the world, and their number is constantly growing.
Businesses get inspired by existing OTT platforms and launch their own. They start creating content and selling access to it through video streaming services. And people purchase it because they find OTT platforms convenient to use.
So, how can OTT platforms help you generate revenue? Let’s observe it in this article.
How do OTT platforms help businesses earn money?
#1 Monetization models
Development companies that design OTT solutions embed different monetization capabilities into their products. For example, there are standard revenue-generating models on a video monetization platform:
- Advertising-based money-making model. In this case, viewers usually don’t purchase access to your content. They can access it for free. How then does a provider make money? By advertising. They can run ads made by third-party brands on the platform. They “sell” their audience to advertisers.
- Subscription-based monetization model. This is the most popular revenue-generating approach. Viewers purchase access to content once in a period and can watch unlimited amounts of videos. When the paid period ends, the subscription can be renewed or canceled. A subscription to an online video streaming service usually costs less than a traditional television package. And that’s the reason video streaming platforms are more popular.
- Transactional-based monetization model. It is also known as a pay-per-view model. In this case, people pay for a single piece of content. And they can access only a video they purchased. The rest of the content is inaccessible and needs additional payment.
Also, providers can use a hybrid monetization model. For example, you can combine a subscription-based model and a transactional-based model. As a result, viewers can decide how they want to consume your content – whether to pay for a subscription and consume content endlessly or pay for only a video they will watch now.
#2 OTT analytics
OTT analytics is another thing that can help you generate revenue.
Many businesses neglect it, and it is a mistake. Analytics can help you understand what is working on your platform and what isn’t. You can identify what content people watch the most and what videos they simply skip. You can clarify the preferences of your audience and optimize your content production.
You also can understand your viewers better – who they are, where they live, what devices they use, and so on.
Use OTT analytics to boost the performance of your service.
#3 CDN – Content Delivery Network
A Content Delivery Network is what will help you increase your user base. With the help of a CDN, you can reach people worldwide.
A content delivery network is a network of servers distributed across the world. When a user requests a video to play, the video is transmitted not from the original server but from the one that is located closer to the user. That ensures a smooth viewing experience and lower latencies. And viewers across the world can access your service. It means that your revenue can also boost.
Companies developing OTT platforms work hard so that you can earn more money and get in touch with your audience. Make sure that the OTT solution you have helps you achieve your business goals.