How Video Streaming Platforms Make Money

Have you ever wondered How Video Streaming Platforms Make Money? Streaming videos online is not just watching videos and inviting others to watch the videos; there are things much more beyond that. There are several ways of making money using online streaming platforms. Before getting to know how to make money. You must first learn about VOD and OTT platforms

VOD (Video on demand) is an online video streaming platform where viewers can watch videos wherever they want and at any time. Viewers can also pause, fast forward or rewind the videos and start watching the video from where they left. Viewers have complete control over the video. An example of Vod is Netflix.

OTT (Over The Top) is an online video streaming platform where viewers can watch videos over an internet connection rather than traditional forms of methods such as cable or satellite providers. In OTT, live streaming can also be done. An example of OTT is Amazon Prime.

VOD involves videos that can be downloaded and stored offline. Still, VOD does not feature video content that streams on a live schedule. Whereas in OTT, videos cannot be downloaded or stored but can stream live video content and podcasts. However, live content in OTT, if stored for future views, then it can be considered as VOD. VOD and OTT sometimes overlap in some contexts. Examples like youtube can be considered as both OTT and VOD.

Monetization of VOD

You have three options: SVOD(Subscription Video On Demand), TVOD(Transactional Video On Demand), AVOD(Ad-Supported Video On Demand)

SVOD (Subscription Video On Demand)

SVOD is a way viewers access the content by paying money regularly, maybe monthly or annually. It is one of the biggest profitable methods in the present as many viewers renew their subscription as long as there is quality content on the platform

TVOD (Transactional Video On Demand)

TVOD is a way in which viewers access the content on pay per view basis. There are two ways in TVOD: Giving access to content for an entire lifetime permanently on payment and another method is giving access to the content for a particular period with an amount lesser than the permanent purchase amount.

AVOD (Ad-Supported Video on Demand)

It is the method in which viewers need not pay money to access video content on this platform as it is free to watch videos on this platform. This platform aims to attract a greater audience. In this method, advertisers pay money to video streaming platforms. They place advertisements in between videos as viewers watch ads as they watch the content.
Whatever method you choose video platform must have quality content so that viewers could spend time watching videos

Monetization of OTT

On making money using OTT, firstly, you should have a broader audience and data about the audience so that advertisers pay money to online video platforms so that they get a return on investment.
You can use google ads or custom-developed tools specific to your advertising needs.
There are three methods, namely approaching advertising networks, direct advertising and acquiring sponsors.

Advertising Networks

Advertising Networks almost do all the advertising jobs for OTT platforms as they link Video Streaming platforms with marketers searching for ad space.OTT platform lose control as an ad displayed on the video, it sometimes hit badly on viewers if an ad is irrelevant as OTT are at some risk of losing viewers so if it clearly monitored with a relevant ad, advertising network are also good methods are making money

Direct Advertising

Direct Advertsing is the method in which you directly approach advertisers for their ads on your platform. Firstly for this process, you need a separate team and server to manage your custom ad on your platform. This method helps you earn more money as there are no other men involved as you set the rate for the ads.

Acquiring Sponsorship

Acquiring Sponsorship is another method in which brands pay money as they own the rights to display ads on your platform on a piece of content. You need to catch only a few sponsorships, which results in making money.

Conclusion

The first and foremost important thing about making money through video platforms is to have a broader audience. So to acquire a wider audience into your platform, initially you need quality content in the platform so that viewers spend time on the platform. We hope that you got some idea about making money through video platforms. To know more, check our*** Video Streaming Platform Services.***

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