The Alchemy of Turning Content into Cash on Video Streaming Platforms

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The Alchemy of Turning Content into Cash on Video Streaming Platforms

Enveu

@Enveu

May 11, 2021

Media Technology

By the end of 2023, it is estimated that there will be 4.3 billion smartphone users in the world. These are smartphones that carry basic features such as a camera, video recording and wifi connectivity apart from calling and messaging. That means 50% of the world has the potential to create digital content at any given time. There’s an abundance of content and content creators today but very few creators have successfully monetized their content business. Given this context, let’s zoom into the life of Rachel, the CTO of a well-established media & content business.

Rachel’s role as a CTO is to strategize ways to effectively monetize the company’s media inventory using technology. Her goal is to look at both the newly produced & the existing library of content and offer it to users while generating maximum revenue for the company.

This challenge of monetizing content and turning content to cash is a daunting task. You have to know the quality of your content, your audience & their purchasing power and offer more lucrative deals than the competition.

For those making such content andrevenue decisions like Rachel, here are 4 available options on an OTT, that one can go for, to gain monetary benefits:

1. AVOD (Advertising- based Video on Demand)
This is the type of advertising where ads can be inserted into the video to monetize it. The content therefore becomes free to consume for the viewer without subscription. If you are familiar with the way ads play on youtube videos, that’s what this model is. But the problem is that there can be a loss of video views because of the impatient nature of a viewer who prefers not sitting through a 15 sec or 30 sec ad.

2. SVOD (Subscription Video on Demand)
This type of monetization requires the viewer to pay a certain fee to subscribe to your OTT channel and get access to all the content on it. This type of service includes the likes of Netflix, Amazon Prime, HBO, where you subscribe to view their respective content. The downside is that a subscription model rests on the justification of the fee in context of the quality and quantity of videos provided. The viewer tends to create assumptions of the quality of the OTT channel based on the subscription fee levied.

3. TVOD (Transaction-based Video on Demand)
In this model, the viewer has access to specific content for a short period of time. In popular words it’s called the ‘Pay-Per-View’ model. Events like WWE’s Wrestlemania or the UFC championship matches give a viewer access to watch that particular event for a fee. But where this model doesn’t work is retaining viewership for the entire spectrum of content available to stream.

4. PVOD (Premium Video on Demand)
This model allows viewers to watch something before it is released to the general subscribed audience. Given the covid circumstances we are in, this is like a replica of the first-day-first show excitement we see in a cinema hall. Disney tried this out by releasing its remake of the movie ‘Mulan’ last year. Viewers paid a certain fee to watch this movie before its full release.

Rachel was pleased to have these various choices at her disposal but she was also nerve-wrecked thinking which one to select. It’s quite a natural feeling. Choosing the best revenue model for your business requires a thought-through strategy that you may not have the time to plan out. But don’t worry, Enveu is here to help you — our experience in monetizing OTT content helps us customize a solution based on your specific requirements. We carefully consider and analyse perimeters such as current price trend, idea-to-video generation time, long term vision of your brand, the effort of your creativity put in and most importantly, feedback from your audience.

If you are someone who relates to Rachel, it is advisable for you to take your time, weigh your options, and eventually after all the trial & error methods have been tested, you will know what works best for you.

#ott #ottdevelopment #vod

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Enveu

Enveu provides end-to-end OTT technology solutions to build, launch, manage and grow a video streaming business across 12+ platforms. Their premier platform - the Experience Cloud helps Media Publishers & Content Creators globally to manage their content in one central location, create intuitive apps across multiple devices, engage with users on a personal level and monetise content in various models. Enveu offers a unique less code environment with minimal CAPEX and helps Brands go LIVE within weeks!