Have you heard about IPTV/OTT platforms? If not, you should know that they can help with a video streaming service creation. These video streaming services can be profitable for businesses. 

For example, Netflix’s revenue for the first quarter of 2022 amounted to nearly $7,87 billion. To compare, in the first quarter of 2021, its revenue amounted to $7,16 billion. 

In this article, we talk about how you can monetize your video content and the possibilities of IPTV/OTT platform money generation. 

If interested, learn more about IPTV systems

So, how can you monetize video content with IPTV/OTT service?

There are many monetization capabilities of video streaming platforms:

#1 Video-on-demand

Video-on-demand (VOD) functionality allows users to view videos when they want. VOD platforms offer viewers pre-recorded content that doesn’t need to be downloaded on a device. People need only an Internet connection and a gadget to view content. 

VOD functionally offers viewers a lot of flexibility. They can watch videos when they want and however they want. There is no common schedule. You cannot miss the next episode. Moreover, you can watch several of them in a row if the whole season has been published. 

You can start watching a movie in the morning and finish it in the evening. Or you can watch it on your way to work or home if a service provides applications. 

These are the reasons why people prefer VOD streaming platforms instead of cable or satellite television. 

Now, we will focus on how exactly the VOD platform can be monetized: subscriptions, ads, and transactions.

#2 Advertisements

An ad-based video-on-demand or AVOD platform generates revenue by showing ads to viewers. The content is usually free in this case. 

AVOD platforms don’t require a fee from viewers in the majority of cases. However, some platforms may offer two packages: a subscription without ads and a subscription with ads, but at a lower price.  

Ads are videos from companies that hope to find their target customers on your platform. In the other words, you “sell” your audience to them. But it is a win-win situation: advertisements can be targeted at people who might be interested in the product or service, and people usually don’t mind watching ads on video streaming platforms because they are short. 

#3 Subscriptions

Many IPTV/OTT services prefer requiring a subscription from users. People must pay a fee to get access to the library of videos on a platform. The subscription may last a week, a month, a quarter, and a year. 

When a user purchases a subscription, they get instant access to all videos available on a subscription. Usually, the subscription monetization method doesn’t show ads to viewers. So they can watch videos without interruptions. 

But recently, video streaming services have observed a subscription fatigue phenomenon. It means that consumers are tired of all subscriptions and turn to ad-based services. 

#4 Pay-per-view

The pay-per-view model is also called the transactional-based monetization model. People pay only for a video they want to watch. Other videos remain unpaid and unavailable. 

A transactional-based model goes well with platforms that don’t offer plenty of videos. 

A transaction-based model is usually combined with any other on one platform. So, a service offers some videos on a subscription or ad basis, and some videos require an additional fee. Such services use a hybrid monetization model. 

Conclusion

IPTV/OTT services are designed to help companies generate more revenue. They have plenty of opportunities for that: advertising, transactions, subscriptions, and a combination of several models. Many streamers also earn money by receiving donations during live broadcasts. We have described just a few capabilities, but they can bring a fortune.