Monetization Agility and Tech Readiness Define Streaming Success
In the highly competitive world of streaming, there is no single recipe for success. As platforms proliferate and audiences grow more fragmented, it has become increasingly clear that sustainable monetization demands more than one revenue stream. Today’s media companies must adopt a flexible, multi-pronged approach to monetization to remain competitive, profitable, and future-ready.
A Shifting Industry and Consumer Base
Recent industry moves speak volumes about where streaming is headed. CNN’s renewed $70 million investment in digital streaming reflects a broader trend among traditional broadcasters deepening their commitment to digital-first strategies.
Traditional broadcasters are doubling down on streaming as the new center of gravity for content distribution. This is not just a pivot; it is a commitment to long-term transformation.
Consumers are leading the charge. According to Deloitte’s 2024 Digital Media Trends Survey, the average U.S. household subscribes to nearly five streaming services. With 47 percent of consumers using both paid and free options, a clear signal that flexibility is not just welcomed, it is expected. Viewers want choices not just in what they watch but in how they pay for it and engage with it.
Diversification as a Competitive Edge
As companies like CNN push aggressively into digital platforms, ripple effects are being felt across both established and emerging streaming services. According to the Global Media Journal (2024), this evolving landscape is increasingly defined by adaptability, experimentation, and the rapid adoption of hybrid distribution and monetization strategies.
Leading streaming platforms such as Netflix, Amazon, and Disney, have all evolved from their original models. Netflix, once a pure-play SVOD platform, now offers an ad-supported tier. Amazon has expanded Prime Video with ad-supported content and sports programming. Disney bundles multiple services and has introduced ad tiers for Disney+ and Hulu. These shifts are not experimental; they are calculated responses to shifting viewer behaviors and market conditions.
Statista projects the global AVOD market will grow from $38 billion in 2023 to $69 billion by 2027. Meanwhile, PwC reports that U.S. SVOD revenue hit $40.6 billion in 2023, while U.S. AVOD climbed 42 percent year-over-year to $18.5 billion. These figures demonstrate how dual-revenue strategies are already delivering results. For streaming platforms, it is not a matter of picking between ads or subscriptions. It is about building ecosystems that accommodate both, along with transactional revenue when appropriate.
FAST channels are one such example. Their rapid growth, now numbering more than 1,500 in the U.S., shows how valuable a well-executed AVOD strategy can be. They offer a lean-back experience reminiscent of traditional TV, combined with the targeting power of digital advertising.
Building the Technical Foundation for Streaming Agility
While many media companies understand the value of flexible monetization, not all have the technology infrastructure to implement it. This is where many otherwise promising strategies break down. A platform might launch with subscription support but struggle to scale when it comes time to add AVOD or FAST capabilities later. Retroactively implementing these capabilities can require costly re-platforming or third-party integrations that disrupt both business and user experience.
This is particularly risky in an industry where agility matters. If the market shifts or an opportunity emerges, such as licensing live sports, launching a PPV event, or partnering with a brand on a sponsored channel, the inability to act quickly can mean lost revenue and diminished audience relevance.
Investing in a modular, extensible platform from the outset is no longer a luxury. It is a necessity. A platform should enable true monetization agility, supporting SVOD, AVOD, hybrid models, and even emerging monetization tools like microtransactions or loyalty-based rewards. Otherwise, media operators risk being boxed in by their own technology stack.
Payment Flexibility: A Revenue Multiplier
Just as important as monetization models is how users pay for them. Payment flexibility is a powerful but often overlooked component of streaming strategy. Today’s audiences want control, over their subscriptions, over à la carte purchases, and over one-time event access.
The KSI vs. Logan Paul boxing match is a case in point. With 1.3 million PPV buys, it demonstrated that consumers will show up and pay when the model fits the moment. Viewers did not have to subscribe to a service to watch. They could simply make a one-time purchase and enjoy the event.
PYMNTS confirms this behavioral trend. Seventy percent of consumers consider available payment options before making a digital media purchase. Offering recurring billing, prepaid passes, or even flexible billing cycles can improve conversion rates and lower churn. In short, monetization does not end at the paywall, it continues with the payment experience.
Readiness for What’s Next
As streaming becomes the dominant form of media consumption, the path forward to best monetize content and audience is far from static. The industry is in a rapid iteration stage. More platforms will blend monetization types, experiment with dynamic pricing, explore in-app purchases, and even revisit older ideas like tipping and donations in new formats.
Ad revenue from FAST channels is expected to surpass $10 billion by 2027. Combined with growing global SVOD markets and expanding mobile access in developing regions, the runway for growth is long, but only for those prepared to adjust their models as they scale.
Conclusion: Flexibility Is the New Baseline
Success in the streaming economy is not about choosing the right monetization model. It is about building a system that supports the right mix of options for your audience, today and tomorrow.
The most effective strategies involve sequencing multiple models to extend the value of a single asset. For example, a slate of shows might be offered via subscription and transaction models for the first 12 months, then windowed into a free FAST channel, and later made available as AVOD-supported on-demand content. That’s two consumption formats and two monetization strategies delivering three distinct viewer experiences from the same content. The key is applying the right strategy to the right content, at the right time, to optimize both revenue outcomes and user satisfaction.
For media companies, this means choosing technology partners that understand the demands of an evolving marketplace. The goal is not just to monetize, it is to maximize revenue, mitigate risk, and maintain relevance in a landscape defined by rapid change.
Streaming’s future belongs to the flexible. Companies that align technology and strategy will be best positioned to lead the next wave of digital media growth.
[Editor's note: This is a contributed article from BitCentral. Streaming Media accepts vendor bylines based solely on their value to our readers.]
Related Articles
Conversation about monetization is so nuanced that after a decade of writing on this topic, I am still looking for meaning where there may be little to find. Essentially, what I've come to understand is that advertising is like the stock market: Certain aspects of advertising deals are not transparent now and may never become fully transparent. What is clear, according to research from Statista, is that 64% of revenue growth in the U.S. in OTT is coming from advertising.
28 Mar 2025
Bitcentral, a trailblazer in media software solutions, presents ViewNexa®, a game-changing streaming platform designed to meet the evolving demands of the digital video era. Bitcentral's commitment to innovation is exemplified in ViewNexa, a solution that redefines how broadcasters, content creators, and publishers connect with their audiences.
15 Oct 2024