3 October, 2023
How OTT platform make money

OTT Business Model in 2023 – How OTT Platforms Make Money?

Explore More About OTT Platform

Are you excited to know about how OTT platforms earn money by streaming a variety of content across devices worldwide?

OTT streaming has given a route to the new at-home environment giving an obvious gain. Seeing the shift of eyeballs to digital entertaining horizons has made people curious to know, how the OTT platform work in minting money out of it like great balls of fire?? Today, we’ll be unleashing the key tipping point that’s making a big difference, flipping the world of videos…

Yes indeed… It has imagined our collective imagination on uncountable ways that entertainment can work and earn a large sum of revenue.

The new-age audience is in favor of choosing internet streaming platforms. It is because a need for fresh as well as unique content constantly stimulates the interest to explore more. As a result, stories with a wholesome experience are ensured to be enjoyed within the comfort of homes.   

Let’s see how the OTT platforms capitalize on the ongoing shift in consumer trends & set to benefit from the pandemic…

What is an OTT Platform?

The full form of OTT is over-the-top platform, which it refers to a method of transferring content through a high-speed internet connection, whether it is in the form of video, music, or other types of content. Rather than delivering in a conventional manner through broadcast networking companies, or cable operators, making money over OTT has introduced a new way to showcase video or audio content.

what is OTT platform

Movies, TV shows, or daily soaps have got a new dimension where businesses can provide varied kinds of services, which people love.  Consumers get direct relay delivered to their smartphone, laptop, and other connected devices. Indeed it serves to be the best alternative to restrictive & pricey satellite options. 

No wonder why video streaming services shook up and every year they hit the mark with further massive investments by big shots like Netflix, Amazon, Hulu, Disney+, HBO Max, etc.  

Let’s take a look at its benefactors…  

Scroll down… 

What are the Benefits of An OTT Platform?

It’s difficult to find a teenager these days who hasn’t been exposed to some type of OTT media. With no doubt, we can say over-the-top technology’s dominance has emerged & proved to be the best… One gets easily answered on how to earn money by creating the best online video platforms and striking it rich perfectly… 

According to research, Asia-Pacific’s M&E market is expected to flourish in the forecast period (2021 – 2026) & reach the highest peak of 7.2% CAGR 

Over time, as OTT grew increasingly popular, numerous sorts of OTT services flourished all over the market. Furthermore, new services like AT & T, ESPN, Turner Sports, and Crown Family Media Networks have gained a lot of traction in the United States, fueling the market’s expansion.

How OTT Platforms Earn Money?

Here’s some following that causes the explosion of OTT content:

1. Attractive Content at a Reasonable Price

OTT platform content is considered more creative, original, new, and accessible in comparison to traditional media. Not just that, but consumers do not have to spend money to receive a subscription.

Even if your viewers watch a small part of the content offered, it still serves to be a good deal.

2. Uniqueness in the Over-the-top Media

To keep up with the growing consumer base on OTT platforms, production firms, film studios have been generating content exclusively for those platforms. Like any other top video streaming platforms such as, Disney+ and HBO Go, you can also stream content & earn money that was previously only available on television.

3. Viewing on Multiple Devices

OTT platform content can be seen on the go, while compared to non-OTT outlets like cable TV. While OTT videos or audios may be viewed on TV sets, if your wearable device has net access, you can also watch it on PCs, laptops, & mobile devices. Some gaming consoles too, in reality, support OTT.

4. Transparency and accurate data

OTT is a way for content creators & streaming platform owners to acquire more accurate data about who is watching what material, their age group, hobbies, and so on. This allows them to customize their watching material to a diverse target audience.  Earlier, such additional features weren’t accessible. 

Apart from these several factors, growth drivers of global over-the-top solutions in the market include an increase in demand that are offered in different hotspot regions, either locally or internationally. In fact, most of them indicate a hiked revenue due to subscriptions, adverts & OTT app based services.

With that, a high on demand for live streaming channels has boosted more in generating money on a rapid note.. This has positively reflected the offerings sufficed by service as well as platform providers..

“You should be the pebble in the pond that creates the ripples for change”

 – Tim Cook, CEO Apple

Tim Cook

Like the quote indicates, let’s keenly identify how top OTT-business platforms make money, & set themselves as standalone players…

How OTT Platforms Earn Money?

Come what may, perhaps nothing can change as quickly or as dramatically as the way people consume video content. 

Subscriptions to OTT services are typically affordable, and some are even offered free. Positively, it generates a lot of profit for customers. It is significant that media-consuming such as TV viewership,  social media interactions, & lifestyle-friendly apps have led to its biggest impact. And that’s why, it has heightened platforms, having a great volume of traffic. 

As a result, these online video platform have a number of options for monetizing their material. Some of them are listed below:

1. Video Advertising Networks

Video Advertising Networks

Joining a video advertising network is one of the quickest methods to how OTT platforms cash it all from your OTT (VAN). VANs help you to connect with advertisers who are looking for an ad space to earn a shelling leveraging your streaming domain.

2. Direct Advertising

Direct Advertising

You can control the types of ads that appear on your OTT platform with a direct advertising model. To accomplish this, you’ll need to create a custom ad video streaming server to control the ads that appear on your platform. This way, you can have complete control over price negotiations & set your rates. 

3. Best Sponsorship Deals

OTT sponsorship deals work similarly to television sponsorship deals. In that, a business pays for the right to advertise on a specific piece of content. There are a lot of ways where streaming services make money to show their content in the form of banner ads, display, or launch screens.

4. Various Monetization Models

However, when you tend to research how OTT monetization platforms earn & produce a major revenue in the same manner; there are many numerous ways. These have a distinctive edge when it narrows down to accessibility & money-making potential in comparison to other media. They are as follows:

  • SVOD 
SVOD Model

One of the most popular ways that how to make money with videos in OTT as well-known by people’s all-time choice. It is very well understood that to monetize a video-on-demand network, it is quite necessary to have a subscription-based video-on-demand model (SVOD). This works by charging users with a monthly subscription for accessing your content.

Read Also: How Much Money Does Netflix Make?

  • AVOD
AVOD Model

The AVOD meaning is ad-supported video on demand (AVOD) model another great approach to monetize your VOD business. Unlike SVOD and TVOD, where viewers pay to watch your content which is of any sort, the AVOD model relies completely on advertising for revenue. Your users don’t have to pay anything.

  • TVOD
TVOD Model

What is TVOD? Transactional video on demand (TVOD) is a monetization model that allows consumers to pay per view with two choices. Either, they can go for an on-time purchase obtaining permanent access to a piece of content, or they can rent out a piece of content for a lower price than buying it but with a limited time period of access. 

  • Hybrid Model
Hybrid Model

A combination of two or more of the above will apply when hybrid monetization is chosen. Like how free videos & that aren’t served could help streaming platforms earn big money, it can be well associated in the case of subscriptions, or transactional. Platforms can make a lot of money with those combos.

  • Multi-Screen Model
Multiscreen Model

To some extent, this model is similar to the subscription model. These OTT apps recognize that a single consumer may own multiple devices. As a result, they enable users to access the movie library across all of their devices such as iPad, tablets, smartphones, etc with a single subscription on the go. 

Do you want to create an profitable OTT channel for your brand?

Which Model is the Best Way to Make Money in OTT?

Each of the models listed above has worked for some firms while not so much for others. There is no clear picture of Sureshot winners or mediocre, who try these solutions… All it takes is to establish which model will work aptly for them, which are in accordance with their business goals. Each publisher must examine their monetization strategies and comprehend ways of goal setting by analyzing demographics, and target users.

Which Model is the Best Way to Make Money in OTT?

All you have to do now is choose a relevant OTT solution and start making money. All thanks to an experienced development team that is much needed as they have the technical know-how of producing a fault-free & innovative product for many platforms.

Summing Up

In the future, OTT providers are projected to offer new OTT entertainment that consists of additional live as well as on-demand streaming channels. For that matter, some are also available for free… This significant transition will grow in all means showcasing massive growth. Broadcasters in the United States & other countries team up with multichannel video content distributors to provide ready-to-package versions as OTT offers, fueling its market growth.

Furthermore, as demand for material has increased dramatically, a growing number of OTT platform providers are making some of the existing content available for free and launching new content on their platforms. Also, viewers are live streaming concerts, virtually connect through Zoom lectures, attend business meetings, and be a part of online book launches, which is likely to be a significant factor in making up for wholesome revenue. And that’s a win-win situation for both!

If You Already Have An Idea About Starting An OTT Channel With Multiple Revenue Models, Schedule A Free Demo And We’ll Help You Implement It!

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Frequently Asked Questions (FAQ)

1. How Netflix Make Money In OTT Platform?

Netflix is a media company which earns revenue by offering streaming services mostly with a focus of broadcasting entertainment subscriptions. It’s a digital platform that allows subscribers, content owners to stream their curated originals such as series, documentaries, feature films, etc on demand. The popular streaming platform also offers a range of mobile games & hence it retains its customer base which results in immense profitability.

2. How Does Filmmakers Earn Money In Ott Platform?

Many filmmakers get a unimaginable profits through OTT without the risk of enduring loss after a film production. Since each OTT platform has its own customer base, every content has its own value. They manage to monetize their content with amplified revenue-building opportunities via SVOD, TVOD, AVOD, PVOD, Catchup TV, etc. While releasing the movie-premieres filmmakers get to target a wider audience set for the next upcoming projects in a strategic way.

3. How Ott Platforms Works?

OTT platform which focuses on the on-demand or live content delivery focuses to provide it endlessly through an OTT platform providers. With the wireless internet connection an integrated mix of content are delivered to every device no matter where they are. Many services that are labelled such as Netflix or Disney + are bundled under a single subscription are packaged by a service provider & then presented to wide set of audiences. 

4. How To Sell Movies On Ott Platform?

With the advent of over-the-top services, talented movie-makers have now loads of options to sell & distribute their content across the globe. To start right from subscriptions, pay-per-view models there are many options to rely on. Interestingly, they can also unfurl the potential to monetize their blockbusters in OTT via premium video on demand model. Indeed, they can assure great surplus returns on their release largely that adds up to their ROI.

5. Which OTT Revenue Models Is Best For You?

When it comes to monetize short content in order to attract viewer’s attention, advertorials are the best means to captivate instant revenue. Therefore AVOD is a good option to choose. Besides that, if content aggregators like you have long-tile content to monetize, subscriptions are a better choice where you can get constant earnings, PPV, Catchup TV, Coupons & Promotions are also available in the revenue-scaling platter.

Blogger and OTT Expert in Contus Vplayed. Interested in digging deep into OTT Platform & video streaming media business tools and Love to discuss and share views on the latest technologies tips, and tricks.


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  10. Elena Reply

    What type of contents generate more money and which is the top earning platform across the region? how its profit data calculated worldwide.

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  20. Gisela Reply

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  22. Dorian Reply

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  26. Timeo Reply

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  30. Isabella Reply

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