VOD Platform – Which Revenue Model is Good for Your Business

An online source stated, ‘’In the Video-on-Demand segment, the number of users is expected to amount to 2,226.1m users by 2025.’’ The growth of the VOD streaming platform soon took flight immediately after the pandemic. While entertainment was limited to TV channels and theatres, VOD platforms changed the way video-on-demand streaming content was being accessed and viewed. Viewers soon became fond of subscription-based video on demand platforms.

This type of monetization model soon garnered more interest and became a well-considered monetization model. 

Paying to access a huge library of video content for a time period became more convenient for viewers instead of watching repeated video content schedules each day. 

Video on demand platforms are bound to grow and this is proof, ‘’User penetration will be 23.9% in 2021 and is expected to hit 28.5% by 2025.’’

Viewers are leveraging video streaming platforms because the former is providing convenience when accessing video content. 

Hence if you’re looking to generate revenue from your on-demand streaming services, choosing the right monetization model for the same is required. 

To help you make that decision, this blog will help you. 

4 VOD Platform Revenue Models To Consider In 2022

If you’re looking to choose the right VOD revenue models, then this category will help you analyze them better.

Before you can consider any of the below revenue models, first you need to analyze your viewers. 

Understand which revenue model would they prefer. 

Apart from this, you need to also study the video content you are offering so that the right revenue model can be placed. 

video on demand platform

1. Subscription video on demand

Subscription video on demand(SVOD) is the most considered revenue model. The reason being viewers can access unlimited content for a price. 

The subscription can be paid either monthly or yearly based on the viewer’s preference. 

With these types of revenue models, viewers can conduct multiple actions. To name a few are, to watch content anytime and on any device, pause the content to watch at a later date, and more. 

The reason why subscription based video on demand is growing popular is because online viewers find it easy to pay for a stipulated period of time and watch unlimited content. The content library is huge and the access to all of them becomes easy for a fixed price. 

2. Ad based video on demand

Did you know that by placing ads on your video content, revenue can be generated?

Ad-based content has always been around but it has become more profitable within the OTT space. 

You can charge a fee for advertisers based on the platforms you choose to exhibit the ads. The ads can be easily placed either in the beginning, middle, or the end of the video content being played. 

Ads have been a great source of income for advertisers and with OTT platforms on the rise, this platform has given more leverage. The chances of viewing an ad stands high and thus clicks on it stand double. 

3. Transaction video on demand

Transaction video-on-demand is also referred to as pay per view. 

Pay-per-view is the process of paying for a certain content for a specific period. For instance, you can access content A for how many times you want until the time expires.

This type of revenue model is growing popular because viewers pay only for the content they wish to view when they like. 

TVOD is garnering more interest as those who are looking to stream certain content for just a small period of time can benefit value wise as well as on monetary terms. 

4. Premium video on demand

When you want to see video content in advance, that is before their release date, you need to pay a fee to access it.

This fee is called a premium fee. 

For example, you’re launching a new movie on your best VOD platforms. You can generate revenue here by offering a premium fee to access that movie before its release date. 

Premium video on demand is growing popular because accessing top video content is an option now. This gives movie buffs the liberty to watch their favourite characters act on screen in advance than the usual wait time. 

Conclusion

Video-on-demand streaming services are the future. With the statistics shown above, it is evident that these types of services are here to stay for long.

To help you generate better revenue from your streaming on-demand services, the above-listed monetization models can help you. Choose one which suits your type of viewers and business model. 

Also, if you wish to enhance your video-on-demand solution, take the assistance of reliable video-on-demand software. They are affordable and provide everything you need to enhance your VOD platform in 2021.

So when do you plan to get started?