Revenue is the lifeblood of any business, and streaming platforms are no exception. As a result, streaming services have developed a variety of models to generate revenue. This includes Advertising/AVOD (Advertising Video-On-Demand), Subscription/SVOD (Subscription Video-On-Demand), transactional/TVOD (Transactional Video-On-Demand), Event-Based/PVOD (Pay-Per-View Video-On-Demand), Sell-Through/EST (Electronic Sell-Through) and coupon/promotions model.
Advertising/AVOD:
Advertising/AVOD (Advertising Video-On-Demand), the most popular among streaming services, involves providing users access to content and generating revenue through advertising. It does not require the user to pay a fee for the streaming service and instead generates revenue through featuring commercials, sponsorships, and advertisements throughout the content. YouTube is an example of a streaming service that relies on the Advertising/AVOD model.
Subscription/SVOD:
The subscription/SVOD model is a popular revenue-generating model for streaming services. With this model, the user pays a subscription fee to access content. The subscription fees generally range from weekly to yearly payments and are often used as an alternative way of accessing content. Netflix is one of the most popular streaming services that uses the SVOD model.
Transactional/TVOD:
The transactional/TVOD model offers users the option of purchasing individual episodes or renting movies on a pay-per-view basis. This model can be beneficial for the user as they are not subject to an ongoing subscription fee and have the ability to buy only the content they want. Amazon Prime is an example of a streaming service that uses the transactional/TVOD model.
Premium VOD/PVOD:
The Event-Based/PVOD model is used for events that have a limited time window for viewing and also have a limited selection of movie titles or other live-streamed content available. It is often used to broadcast movies at the same time as their theatrical release, and users are able to access the content for a fee. This streaming model is beneficial for customers who don’t want to wait for content to be released to the SVOD or TVOD platforms and allows them to access it immediately upon release. FandangoNOW is one example of a streaming service using the Event-Based/PVOD model.
Sell-Through/EST:
The Sell-Through/EST model allows users to purchase digital copies of movies. Similar to physical retailers like Target or Walmart, streaming services such as Apple TV make certain titles available for sale. This model eliminates the need for ongoing subscriptions or per-view rentals, and allows users to own digital copies of movies that they can stream and download at their convenience.
Coupons/Promotions:
The Coupons/Promotions model is used by streaming services to attract new customers and induce repeat users to purchase additional content. This includes discounts for subscription fees, free trials, and recommending content or services to friends and family. Coupons/promotions can also be used as an incentive for users to upgrade their subscriptions or rent particular content.
Conclusion
As streaming services are becoming increasingly popular, they have developed a variety of revenue models in order to generate income. Understanding the different types of video monetization platform available in streaming platforms can help businesses maximize their profits while providing users an enjoyable experience. The most popular streaming models include Advertising/AVOD, Subscription/SVOD, Transactional/TVOD, Event-based/PVOD, Sell-Through/EST, and Coupons/Promotions.