How to Make Money From OTT Platforms and Video on Demand

How to Make Money From OTT Platforms and Video On Demand

As a enterprise or advertising and marketing skilled, when client habits change, you will need to concentrate. Perhaps nothing is altering extra quickly or drastically than how individuals devour video content material.

To leverage this shift, you will need to first perceive two of the most typical video consumption strategies: video on demand (VOD) and over-the-top (OTT). We cowl each on this information.

What Is Video on Demand (VOD)?

Video on demand (VOD) is a expertise permitting viewers to watch video content material when and the place they need and the clicking of a button or faucet on a touchscreen.

VOD can also be fashionable as a result of you possibly can pause, rewind, or fast-forward content material—and, in contrast to DVDs, you possibly can simply begin an episode from the second you stopped it somewhat than looking by means of a menu.

In brief, it provides viewers full management of what they devour and how they need to devour it.

One of the preferred VOD companies is Netflix, which began as a DVD mailing service and stored forward of the sport by adopting streaming early.

VOD - Netflix

What Is OTT?

Over-the-top (OTT) is a manner of streaming video and movie content material over the web on the person’s request.

The major cause for this uncommon identify, over-the-top, is as a result of it goes over the tops of conventional media distribution channels and distributes content material straight to the buyer through an web connection.

OTT platforms have been made fashionable by streaming companies like Amazon Prime Video, Hulu, YouTube, and extra.

VOD Vs. OTT—What’s the Difference?

One of the first variations is the medium by means of which video content material is delivered.

  • VOD: Video on demand entails consuming any media content material that isn’t performed on a sure schedule or requires a bodily DVD, tape, and so forth.
  • OTT: This is strictly streamed content material, not downloaded or in any other case saved offline, and can embrace media like movies and on-line radio applications, equivalent to podcasts.

The different huge distinction is VOD can’t be dwell content material, whereas OTT can, as VOD by definition can’t have a set schedule concerned. However, dwell content material can later grow to be VOD if it’s allowed to keep on-line for future viewing.

OTT is commonly VOD, however not all the time, and vice versa. As you might have guessed, many platforms, like YouTube, are categorized beneath each VOD and OTT.

Are VOD and OTT Right for Me?

If you’re keen to put within the laborious work to create a excessive quantity of high quality on-demand content material, you might be questioning if VOD or OTT is best for you. Bearing in thoughts there may be overlap between the 2, listed here are some execs of every possibility to allow you to decide which most accurately fits your wants.

Pros of VOD

VOD allows you to ship on-demand content material to customers, which is extremely fashionable amongst customers. As a outcome, you possibly can monetize your model sooner and simpler through VOD.

This technique is finest suited to subscription-based companies. For instance, health coaches can use VOD platforms to supply month-to-month subscriptions for on-demand health courses.

VOD additionally works properly for manufacturers wanting to leverage sponsorship offers—extra on these monetization strategies in a second.

However, to generate income from VOD, you will need to have a big, high-quality content material library, so be sure you have a staff ready to deal with this workload.

Pros of OTT

OTT’s power lies in using the web, leading to OTT platforms having the ability to supply each video-on-demand companies and dwell streaming. This is important for manufacturers that rely on dwell occasions of their enterprise mannequin. A great instance is Wanderlust TV:

VOD - Wanderlust example

If dwell occasions are a part of your advertising and marketing combine, OTT is the best way to go for you and your model.

How Do I Make Money With VOD and OTT Platforms?

As a marketer, you might be questioning how to use VOD and OTT to herald income. There are a number of methods you possibly can revenue out of your video content material.

Monetizing OTT Advertising

To get began with OTT promoting, you want:

  • The proper expertise: You can use third-party instruments like Google Ads or have a customized answer developed to fit your particular OTT promoting wants.
  • An viewers: OTT promoting hinges on a big viewers as advertisers usually pay on a value per mille (CPM) foundation.
  • Data: Data on your viewers demographics is important to serving to advertisers determine whether or not your platform will present them with a wholesome return on promoting spend (ROAS).

You have three choices to monetize your OTT platform: video promoting networks, direct promoting, and scholarship offers.

1. Video Advertising Networks

One of the quickest methods to generate income out of your OTT is to be a part of a video promoting community (VAN). VANs join you to entrepreneurs searching for advert house.

The main disadvantage to VANs is you lose management of the kind of adverts showing on your platform—if one thing offensive performs, your viewers could blame you. However, VANs are handy as you don’t have to discover advertisers on your personal, so be certain to totally analysis any VAN you contemplate and learn the effective print earlier than signing.

2. Direct Advertising

Direct promoting permits you to take management of the sorts of adverts you show on your OTT platform. To do that, you will need to develop a customized advert server to handle the adverts you show on your platform.

Going the direct promoting route means you’ll have to discover advertisers, negotiate with them straight, and set your charges. It’s quite a lot of work each on the enterprise and improvement sides. However, you might get higher returns as there’s no intermediary.

3. Sponsorship Deals

Just as within the days of tv, OTT sponsorship offers contain a model paying for the correct to promote on a specific piece of content material.

There are some ways to ship your sponsored messaging. For occasion, you possibly can weave it into your content material, present it as banner adverts, or show it on launch screens.

An benefit of sponsorship offers is they’ll simplify your advert rotation since you solely have to serve a number of sponsoring manufacturers. However, that may show expensive ought to any select to finish their sponsorship.

Monetizing VOD

Just like OTT promoting, you could have three fundamental choices for monetizing VOD content material: subscription video on demand (SVOD), transactional video on demand (TVOD), and ad-supported video on demand (AVOD).

1. Subscription Video on Demand (SVOD)

Subscription video on demand (SVOD) is likely one of the hottest methods of monetizing a VOD platform.

The SVOD mannequin works by getting customers to pay a recurring charge to entry your content material.

VOD - Showmax

SVOD is commonly probably the most worthwhile methods of producing a gradual circulation of revenue out of your platform so long as you could have content material individuals are keen to pay for.

Luckily, analysis exhibits the estimated income and utilization of SVOD are anticipated to proceed rising for the foreseeable future.

With SVOD, you possibly can create completely different entry ranges at varied value factors, making your VOD content material out there to a wider viewers.

2. Transactional Video on Demand (TVOD)

Transactional video on demand (TVOD) is a monetization technique permitting customers to entry content material on a pay-per-view foundation.

You have two fundamental methods to supply TVOD to your clients, particularly:

  • buying everlasting entry to a bit of content material with a one-time fee, like we used to do with DVDs
  • renting a bit of content material at a decrease value than the acquisition however with a restricted entry interval

According to Statista, income within the TVOD market is rising and anticipated to attain $12,150 million by 2025.

With a greenback quantity like that, TVOD could also be a lovely possibility.

3. Ad-supported Video on Demand (AVOD)

Another glorious manner to monetize your VOD platform is the ad-supported video on demand (AVOD) mannequin.

Unlike SVOD and TVOD, the place customers pay to view your content material, the AVOD mannequin generates income solely from advertisers. Your customers don’t pay a dime. Because of this, such platforms have a tendency to appeal to giant audiences.

How does this work?

Advertisers pay to place adverts in your video streams. Instead of paying to watch your content material, viewers see a number of adverts as they stream your video content material. A preferred instance of that is the free model of YouTube.

VOD - heat map tool

The AVOD mannequin provides you two choices:

  • signing up for video advert networks
  • direct promoting

Of course, the extra viewers you could have, the extra possible you’re to discover advertisers.

What Platforms are Best for VOD and OTT?

Ready to launch your VOD companies?

Not so quick.

You want a VOD internet hosting platform first. With so lots of them out there, selecting one generally is a daunting process. Besides, when you don’t know what you’re doing, you might join a platform that gained’t meet your wants.

Here are a number of platforms to contemplate.

1. Uscreen

One of the most important gamers within the VOD internet hosting platform house is Uscreen. The platform is likely one of the most reasonably priced, enabling even small companies to use their companies. For $49 monthly, you get entry to advertising and marketing instruments, video internet hosting companies, pricing management, and extra.

2. Dacast

Dacast is a streaming answer providing each VOD and OTT performance. Best suited to enterprise companies and skilled use, they supply internet hosting for high-quality video broadcasts and dwell streaming. Just a few of their notable options embrace video monetization, sturdy safety, and API integrations. Plans begin as little as $39 monthly.

3. IBM Cloud Video

IBM Cloud Video provides an expansive function set, making it simple to tailor every thing to your wants. However, as a result of it has tons of options, it may be difficult to navigate. That makes it finest suited to companies with knowledgeable broadcasters on their staff. IBM Cloud Video runs at increased value factors than the final two choices, with their starter plan coming in at $99/month.

Of course, these aren’t the one three on the market. In addition to a few of the big-name platforms we’ve talked about, others you possibly can contemplate embrace:

Because the business is rising quick, you possibly can anticipate new gamers to come on the scene.


With the correct content material, viewers, and monetization methods, VOD and OTT content material have the potential to develop your income considerably.

Are you curious about making a VOD/OTT technique however don’t know the place to begin? If so, might help. Our company additionally provides companies like electronic mail advertising and marketing, web optimization, content material advertising and marketing, and paid promoting.

Have you ever used VOD or OTT to generate income? If so, what was your expertise?

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