OTT or Over-The-Top video streaming is the latest in technology that has taken the world by storm. It’s a model that allows cable channels and other content providers to stream their content online without paying for cable TV subscriptions. This can be done through an internet connection on your television, phone, tablet, laptop, or other devices. As this new way of watching TV becomes more popular with consumers looking for cheaper alternatives and easier access to programming, it will become increasingly important for advertisers and brands to find ways to monetize OTT viewing habits.
The OTT Monetization market is expected to grow from $3.9 billion to $7.2 billion in 2021, a compound annual growth rate of 16.5%. To better understand the driving forces behind this trend, this post will explore critical questions about how the industry monetizes content and what challenges providers are looking to capitalize on their offerings.
The OTT Monetization Market is growing steadily due to increased demand for video content and increased bandwidth availability across all regions worldwide.
This blog post will outline some of the major trends contributing to this growth and discuss some of the most important challenges facing providers today when seeking to maximize their revenue opportunities with high-quality content offerings through these channels.
Table of Contents
What is OTT Monetization?
OTT Monetization is the process of making money off of your video content on an over-the-top platform, like Netflix or YouTube.
OTT (over the top) Monetization is a digital platform that allows advertisers to create, plan and measure their campaigns easily. It provides the opportunity for brands to reach customers transparently while providing on-screen advertising.
OTT monetization refers to the process of making money from your videos. You can do this by adding advertisements in or around your videos, and you’ll earn a portion of ad revenue every time someone watches an ad.
Over-The-Top (OTT) Monetization is a type of service that provides content over the Internet without incurring data transfer charges. It’s an excellent way to get online media such as movies and TV shows, typically not transmitted.
A new report from BI Intelligence examines the future of OTT content and how video platforms like YouTube are changing to meet consumer demands. Download the full report here.
What are the Monetization Models Exists in OTT
The main models are advertising, subscription, transactional video on demand (TVOD), and hybrid.
The main monetization models for OTT are the freemium and ad-based models.
The main monetization models available to OTT are advertising, subscription, and free model.
The main monetization models available to OTT content providers are advertising, subscription/membership, and the hybrid approach.
In the online video industry, there are multiple monetization models available. The most common one is CPM (cost per thousand).
Different models exist, but the most common ones are Pay-per-view (PPV), In-stream Ads, HD Live Streaming, and Subscription VOD.
The main monetization models for Over The Top (OTT) services are advertising and paid subscriptions.
Several different monetization models are available to OTTs. You need to decide which model is the best for your business, considering that each has its advantages and disadvantages.
Why is monetizing via OTT such an excellent idea for content creators
Creating content is a great way to make money, but sometimes you need an extra boost. OTT sites can help with that.
Creators of digital content have many options available for them. But most are expensive or time-consuming, or both.
OTT is neither, and it offers a great way to monetize your content without being tied into any one service provider.
You can earn a ton of money using OTT because it’s the most profitable and popular way.
Benefits of using OTT Monetization
- You don’t have to worry about hosting your video content
- You can monetize videos from other platforms like YouTube and Facebook
- No need to sign up for a merchant account or deal with credit card processing fees
- It’s easy to use- just upload, set the price, and OTT Monetization does the rest
- No need to manage multiple platforms
- Free-to-use service
- No cost for production and distribution of content
- Ability to control how, when, and where viewers view your content
- Monetize your content without the need for ads
- Earn a share of the revenue from all views, not just those who watch with ads
- Increase the number of views by making it easier to stream your content on any device at any time and anywhere
- Get paid quickly through PayPal or Stripe
- Easy to set up
- Unlimited data storage
- Single platform for both video and audio content
- Content is delivered on a variety of devices, including TVs, PCs, tablets, mobile phones, and more
- Increased Viewership
- Improved Quality of Content
- More Engagement with Audiences
- Higher Revenue for Creators
- Monetize your app without the need for a revenue share
- Earn money from in-app purchases and subscriptions
- Get paid on every download, not just installs
- No commission taken by Play Store or App Store
- It’s quick and easy to get setup
- You can set your rates for ads
- Monetization is 100% mobile-friendly, meaning it works with any device or screen size
- OTT monetization offers a wide range of ad formats, including pre-rolls, post-rolls, banners, and more
- Low cost, high return
- No more tedious advertising and marketing
- Keep your audience engaged with interactive content
- Increase revenue by using in-app purchases to offer add-ons or upgrades
- It’s a flexible and scalable monetization model
- You get to keep 100% of the revenue you generate from your app
- There are no commissions or other fees for using OTT Monetization
- You can use any ad network, including Google AdMob and Facebook Audience Network
- Your ads will be more engaging because they’re targeted to users who have already downloaded your app
- Monetize your videos without ads
- Get paid for the number of views or subscribers you have on a video
- Generate revenue from other sources, including product placements and sponsorships
- Create content that is more engaging to viewers with limited ad interruptions
Disadvantages of using OTT Monetization
- It’s difficult to see the true value of your content because you don’t know how many people are watching it
- OTT providers take 50% of all revenue from ads and subscriptions, which can be expensive
- The content is only available for streaming on one device at a time
- Content creators are not compensated
- Creators have to give up artistic control to make a living
- Streaming services may change the way content is distributed and monetized without input from creatives
- The lack of a clear understanding of the product and how it works
- OTT Monetization is not as customizable as other monetization methods
- Brands must give up more control to use this service
- User experience is not as good as traditional monetization
- Users are more likely to abandon a product when they have to pay for it
- There’s less incentive for the content creator if people can’t access the videos without paying
- You can’t use it on all platforms
- It’s not as effective for the discovery of new content
- You don’t get to keep the rights to your videos, and you need permission from anyone who appears in them
- There are risks associated with OTT monetization
The future outlook for the OTT Industry
OTT is changing how we watch TV. The industry is growing, and it’s hard to see how the market will develop in a few years.
The outlook for the OTT industry is very bright, It’s estimated that by 2022, revenue from the sector will increase to a whopping $26 billion.
The future of television is changing. With more and more people cutting the cord to cable TV, there have been a surge in OTT (over-the-top) services that offer consumers on-demand content without having to pay for an expensive monthly package from their provider. However, as many providers have discovered, monetizing this new medium can be difficult. That’s where we come in!
We specialize in helping companies create successful strategies for converting viewers into subscribers through advertising or other revenue streams like merchandising and subscriptions.
If you’re interested in learning how to help your company grow its business with innovative media buying solutions, contact us today!