Save your seat for Streaming Media NYC this May. Register Now!

The State of VOD Monetization

Learn more about VOD monetization at Streaming Media East.

See complete videos and other highlights from Streaming Media West Connect on Streaming Media's YouTube channel.

Read the complete transcript of this video:

Eric Schumacher-Rasmussen: Since it is very much an alphabet soup when it comes to monetization, I'm just going to share a real quick slide here so that we can sort of set the terms, even though some of the terms might be debatable, as to who falls into what category. But as we go down the list--SVOD, subscription-based video on demand; AVOD, ad-based; FAST, free ad-supported TV, typically live linear TV; transactional video on demand, whether that's rental or purchase, a relatively new term. And there may have been a new term since last night that I haven't picked up on. PVOD, premium video on demand for first run, theatrical releases like Trolls world tour and Milan. And then there, of course, are hybrid and tribrid models. So with that setting the stage, uh, I want to first ask Sara, as the media reporter for Axios, what are some of the trends that you're seeing in the market right now, in terms of the models that are finding success, the models that aren't? And give us your overview of how things may have changed in the last six months or a year.

Sara Fischer: That's a really great question. I think one of the big changes that we'd seen is that alongside of people's subscription video on-demand subscriptions, things like Netflix and Amazon consumers are looking for our free alternative to those subscriptions. They obviously can't afford... We've seen magazines come out with some pretty strong studies to pay for more than maybe three or four of these subscription services a month. And so AVOD, the advertising video-on demand free services--which are sometimes also called FAST, free ad-supported services--are really rising. What do those look like? We've seen them be acquired by big telecom companies, if it's PlutoTV acquired by Viacom, CBS, or if it's any of these four-letter-word services, they all are getting acquired. And to that end, on the free side, when it comes to the overall consumption in television, free broadcast TV is rising too, and it's been rising. But amid the pandemic it's really taken off.

And so what that is, it's called "over the air." It's where you use your little TV bunny ears to get a signal. And we found that it's rising because people want to get free access to broadcast while they can pay for their Netflix subscriptions. The biggest manifestation of that was probably just last week when we saw Scripps acquired ION for $2.6 billion, which is a mostly over-the-air syndicated service. So that's my general overview of what we've seen, but the rise of "free" has been a big theme, not just throughout this pandemic, although it's been expedited throughout the pandemic, but really throughout the past year.

Eric Schumacher-Rasmussen: Absolutely. And I think the other thing that people are doing is definitely finding those FAST services that you mentioned that free ad supported live linear TV in a way that maybe wasn't true, even six months or a year ago.

Streaming Covers
for qualified subscribers
Subscribe Now Current Issue Past Issues
Related Articles

eCommerce and the Future of Streaming Monetization

Bulldog DM's John Petrocelli and LiveX's Corey Behnke discuss the explosion of ecommerce in streaming that's booming overseas and increasingly coming to North America, and the emerging opportunities for maximizing revenue with interactive streaming in this clip from Streaming Media East 2022.

The State of Video Monetization 2022

Since the bottom fell out of the advertising market in Q1 2020, the industry has been on a rebound across platforms—and shows no signs of slowing. FAST and AVOD are growing, SVOD services are trying to stay relevant, and NFTs are enabling a new creator economy.

Making Money From Streaming Video: You Might Be Doing It Wrong

The lean-back era is long gone, and if you're not engaging your audience, you're not building your business. Read on to see experts from Struum, Cinedigm, KweliTV, and VidCon have to say about new approaches to growing audiences and generating revenue.

How Streaming Services Can Deal With Consumer Privacy Concerns

Third-party data is going away, so OTT services need to explore new ways to leverage first-party data and innovative monetization strategies.

Will Remote Production and Cloud Distribution Become the New Norm?

TAG's Peter Wharton and HBO's Euan McLeod discuss the rise of remote production and cloud distribution and whether they're hear to stay in this clip from Streaming Media West Connect.

Where Will New Content Come from in the COVID Era?

HBO's Euan McLeod and S&P's Michelle Abraham offer two perspectives on how the pandemic has affected content production and its current and coming impact on OTT viewers in this clip from Streaming Media West Connect.

The Art and Science of OTT Recommendation Algorithms

Streaming Media's Eric Schumacher-Rasmussen and S&P's Michelle Abraham discuss the juggling act OTT recommendation algorithms face in serving consumer and corporate expectations and ever-changing viewing patterns in this clip from Streaming Media West Connect.

How OTT Services Are Monetizing Content

Hub Entertainment's Jon Giegengack discusses what recent surveys have revealed about the evolving OTT market and which monetization models are working with today's viewers.

How OTT Discovery and Recommendation Changed in 2020

Hub Entertainment's Jon Giegengack and TAG's Peter Wharton debate the limits of OTT recommendation engines in an era of super-aggregation in this clip from their Streaming Media West Connect panel.

AVOD on the Rise

S&P Senior Research Analyst Michelle Abraham breaks down the state of the ad-supported streaming market in 2020 and 2021, where the bottom is dropping out and where the dollars are coming from in the areas that are thriving and reviving.

Top OTT Trends Coming in 2021

TAG Video Systems' Peter Wharton and Hub Entertainment's Jon Giegengack, and forecast OTT's future in this clip from Streaming Media West Connect.

Pros and Cons of Mixing AVOD and SVOD

Roku's Mike Gamboa and VUDU's Mark Young discuss the pros and cons of OTT services that use hybrid monetization models.

How the Pandemic Will Change Media

Hub Entertainment Research's Jon Giegengack reports survey findings on how media, TV, and OTT consumption and cord-cutting trends have changed during the COVID-19 pandemic in this clip from Streaming Media West Connect.

When Will Ad Revenues Recover?

Axios Media Reporter Sara Fischer projects how local and national advertising as well as specific ad verticals will fare in 2021, as the lingering effects of the pandemic persist, and how that will affect the streaming and OTT markets.

How COVID-19 Has Changed Streaming Consumption and Viewer Behavior

Roland Martin of Roland Martin Unfiltered, Roku's Tim Natividad, and PADEM Media Group's Allan McLennan discuss the shift in content viewing patterns ushered in by COVID-19 stay-at-home orders, and how it will inform OTT personalization going forward in this clip from Streaming Media West Connect.