3 Top Revenue Models for OTT
Learn more about VOD monetization at Streaming Media's next event.
Watch the complete presentation from Streaming Media East, DT201b. Comparing Revenue Strategies for OTT--Which One Works for You?, in the Streaming Media Conference Video Portal.
Read the complete transcript of this clip:
Douglas Sterling: The most common revenue models, advertising, AVOD. Some of you might be familiar with some of these. AVOD, ad integration, SVOD, subscription model, Netflix, Hulu, pay-per-view events. These are some of the most common.
Some of your alternative revenue models: product sales, online store, lead gen. Sponsors, your own advertiser sponsors, your own media sponsors--these are your most lucrative. Fundraising, donations, Patreons, and crowd-funding. Those are some of your alternative models.
Most lucrative models for a large viewership is your ad networks and your SVOD as well, through, I'm sure you're familiar with subscriptions with Netflix, Hulu, and pay-per-view events. Those are your most lucrative for your larger viewership. For your smaller viewership models, your own advertisers. If you have relationships with-- these are not your traditional ads through your ad networks.
If you have your own relationships with advertisers or sponsors this is always gonna be your most lucrative. Again, your SVOD. Some run both, some run AVOD and SVOD and also the promotion of products through sales, online stores and lead gen. This is a model comparison, as you can see, with respect to volume-dependent setup fees that are incurred for each one, your technical support needed, return per viewer, and requirements with as far as integration and break even points.
As you can see, with respect to subs, advertising, sponsors, products and donations that sponsors is always gonna be your less labor-intensive and more return per viewer, with respect to that. And your break-even points about one to two months as opposed to some of them that require more integration. It's gonna take a little bit more with respect to integration.
Fundraising. Fundraising is exactly the same way you would do it on traditional TV. What's required with this is adding graphics to your videos, create and display support-worthy causes, creating conversion-optimized landing pages, whether they're your own or your Patreon's. This is always something that your marketing firm or your business consultant can help you with. You always wanna promote landing pages on your videos, as well.
Questions that you wanna ask yourself are questions that consider do you already raise funds on TV? Do you already have fundraising systems in place? Do you have products your OTT viewership might get excited about or compassionate about? So that's with respect to fundraising. Promoting product sales. You do this pretty much the same way you would on traditional TV, obviously you need to have products that are of interest to your viewership. Creating special incentives for OTT viewers across your platforms, whether it's a Roku, Fire, Android TV, or Apple TV. And have respective graphics to those videos.
And, again, this is something that your marketing consultant firm or your consultants can help you out with. And always wanna promote your optimized landing pages on all your videos. Of course, something to consider with this one here is do you already sell products that are appealing to your viewership? Do you an eCommerce system setup already in place? Do you have optimized landing pages that would drive to your viewers as well? That's for product sales.
Sponsors. Again, this is always your most lucrative, serving pre-, mid- and post-roll video ads, whether they're sponsors or direct advertisers or co-branding apps. Now, what you would need with this is a multi-platform ad server, with multi-source campaign capabilities. As well as an OVP and a CDN and an app developer. Lightcast can help you out with all of these, as well. Question is, do you have or can you easily develop relationships with advertisers or sponsors? You might already have these in-house, as well, that might wanna be named as sponsors to your shows or have their videos ad-run on content run on your apps. Again, this is always the most lucrative.
Disney+ has helped SVOD revenues continue to rise on a steady pace, while COVID-19 has temporarily stunted AVOD's growth
Comcast Executive Director, Business Development & Strategy Matt Smith compares SVOD, AVOD, and TVOD revenue models in conversation with Streaming Media Senior Editor Troy Dreier at Streaming Media East 2019.
Crunchyroll/Ellation EVP, Media & Entertainment Michael Dale discusses how to convert Ad-Supported OTT viewers to subscribers in this clip from OTT Leadership Summit at Streaming Media West 2018.