How to Monetize Videos: Revenue-Generating Models for a Video Streaming Service

How to Monetize Videos: Revenue-Generating Models for a Video Streaming Service

Revenue-generating is the primary goal of any business. When you launch a product or service, you want to ensure it will be beneficial and profitable. You want it to be in demand among customers. 

The same works for video streaming services: you want viewers to use your service so that you can generate revenue. 

The process of revenue generation varies depending on the software you have. If you obtain a white-label OTT solution for video streaming, you should check how it will bring you money. Developers implement different features into their solutions for OTT broadcasting. There are three common monetization models. Let’s talk about them in detail.

Advertising-based monetization mode

A video streaming service that opts for an advertising monetization model is usually free of charge for viewers. Providers make revenue by running ads on their videos. 

People appreciate ad-based services because they don’t need to pay for access to videos. Instead, they view ads during the video playback. Multiple users switch to these platforms because they don’t mind watching several minutes of ads in exchange for free high-quality content. They can start and stop using this service any time they want.

Advertising via online video streaming services is beneficial due to accurate targeting functionality. You understand your audience’s preferences with the help of analytics, and then you show them ads they can be interested in. 

An advertising-based streaming service is a win-win-win for content creators, advertisers, and viewers. Content providers and advertisers generate revenue while customers enjoy videos.

Subscription-based monetization mode

When you sell subscriptions as TVALB does, you offer people purchase monthly or annual access to your content library. Subscription usually means no ads and plenty of original videos. That’s why viewers love them. 

Subscriptions can also mean that you will generate revenue steadily as users need to renew it every month, quarter, or year. 

Pay-per-view monetization mode

A pay-per-view monetization model is completely different from a subscription approach. While a subscription model gives access to the whole library of videos, a pay-per-view option is about purchasing every single video on the service.

Providers usually vary access to paid content – they can allow viewing for a couple of hours or days. It is up to them to decide. Some creators let people download videos on their devices. 

A pay-per-view model is usually effective for services with not many videos available. 

Hybrid monetization mode

Above, we have described three common money-making approaches. You can use one of them, or there is another option – you can combine several to diversify the way your receive revenue.

For example, you can combine pay-per-view and subscriptions. In this case, you divide your content into two groups: one is available after the payment for a subscription, and the other requires additional purchases. 

The combination of ads and subscriptions is widespread in the market now. Services introduce two payment plans: the first plan is an ad-free subscription at a higher price, and the second one is an ad-based subscription at a lower price. 

There are other options for how you can combine these models. You are limited only by your imagination and the software solution you obtain to run a video streaming business. 

Final Thoughts

Video streaming services are a gold mine for content providers as viewers find them more convenient than traditional television. They are usually available on multiple services and stream unique on-demand content. 

In turn, you, as a provider, have multiple capabilities to monetize your videos. However, they can be limited by a solution you run your service on. Ensure to find software that can fulfill your needs offering functionality for monetization.