Best Video on Demand (VOD) Revenue Models for your Video Streaming Business 2024

Best OTT revenue model: AVOD, SVOD, and TVOD 

Nowadays, video on demand (VoD) is very popular among viewers. People usually take breaks and chill during their free time or watch their favorite shows on VOD. Learn more about video-on-demand (VOD) and video on demand revenue models, and how you can monetize the best video-on-demand platforms based on your business and content niche.

Best Video On Demand (VOD) Revenue Models for your Video Streaming Business 2024

best video on demand revenue models

video on demand (vod) is an option of watching movies on video on demand platforms with a variety of your favorite shows or movies, which can be played anytime, anywhere, or even the best which you can download and watch offline.

Did you know Netflix has driven $17 Billion annual revenues in 2023 by streaming about 10 Billion hours a month? Also, YouTube is projected to make around $6 – $9 Billion in annual revenues by streaming 4 billion free videos per day.

Revenue models that YouTube and Netflix have endorsed are each absolutely different. Netflix acts on a subscription-based model, whereas YouTube hosts ads, streaming free content. But still there isn’t much variance in the set of audience that subscribes to both these services

So, here are four revenue generation models that significant VOD providers in the market follow these days, and they are thriving immense

 

Also Read: What is OTT?

Here are the Top best Video On Demand Revenue Models

 

They can achieve a successful video streaming through effective mantras as we mentioned below. These mantras will bring out a large-scale difference in the marketing strategy adopted by market leaders.

Most mistakes that video streaming business does recent days is they wait until they finish creating & acquiring the content also they wait for the market leaders and to adopt the revenue strategy followed by them. They planted the success of video streaming inside the revenue model and content strategy.

Contact webnexs and get free consulting for your video solutions for further assistance

A business revenue model concludes the success of your video streaming business. By choosing an effective business model you can make or break the entire base of your video streaming business.

1. Subscription video on demand

Webnexs subscription video on demand (SVOD) is the most successful revenue model used by many online video streaming businesses. Users can easily watch unlimited online video and surf unlimited video content. It provides the best platform for users to watch their shows or movies on video on demand anytime and anywhere.

The users can get the live feed through webnexs subscription, video on-demand user can play, pause, fast forward, rewind, stop, and record at their satisfaction. The user has the option to pay their subscription weekly, monthly, half-yearly, quarterly at user’s convenience.

Related: How do “SVOD” platforms create more income in streaming video content?

If the users pay the subscription fee, they are eligible to surf unlimited online video content, they can watch an enormous choice of content. Webnexs Subscription model is good for platforms that have a huge variety of entertainment video content.

To grip their uses for a long-term subscription, these SVOD model provides different video content such as pay TV programming movies, drama, serials etc.,

2. Transactional video on demand

Webnexs Transactional model is also a pay-per-view model. webnexs Transactional model works exactly like physical rental stores (i.e) how physical rental stores buy/rent different articles webnexs transactional model works similarly these webnexs TVOD buy/rent movies and other videos. This webnexs transactional model can be explained clearly with the best example as followers.

If a TVOD offers a particular video for a week, users can watch that rented video more times anywhere. Only when the rental period expires. After that, the user cannot access the rented videos.

 The TVOD model, divided into EST and DTR (i.e.) download to own and download to rent Pay per view also works with some special events and live programming where viewers purchase particular programming and the broadcaster streams the same event to all those who have purchased an event at a specific set time.

Related: How Pay-per-view concepts are applied in TVOD platforms to publish your media contents?

PPV is the best revenue model for various sports events. webnexs TVOD services usually try to keep their customers and engage users by offering Exclusive discounts and attractive pricing on a selected piece of content and with the latest release in the market.

3. Advertisement–supported video on demand

Webnexs AVOD is a common form of video monetizing and video streaming model. In this webnexs, AVOD model users can view videos for free, but users view advertisements along with free videos. Since the advertisements are in the free videos, the users also watch advertisements along with the free offered webnexs AVOD videos.

YouTube will be the best example for advertising video on demand model.  It widely classified video on demand ads into pre-roll, mid-roll, and post-roll ads.

  • Pre-roll–Ones that play at the beginning of the video
  • Mid-roll–Ones that are playing in the middle of a video
  • Post-roll–Ones that are playing at the end of a video

4. Hybrid of SVOD-TVOD

Related:How to Monetize Your Video Content using SVOD, TVOD, and AVOD

Even though users have a huge library of videos, it is advisable to choose webnexs hybrid of SVOD–TVOD models. When your platform is getting more prominent day by day, you definitely need this model to monetize your videos and produce higher revenues.

You can select to monetize your videos through the ways of ads inserted into a subscription model or into a transactional model or even with the pay-per-view working with a subscription.

A hybrid of SVOD and TVOD suits all different ranges of users. Some users would choose to pay for a monthly subscription and access the content video. Unlimited times for such uses of SVOD are a suitable model. Similarly, when users who just want to buy a specific piece of content and thus PPV will work best for such users.

On webnexs video on demand models help users understand how the difficulty of the user in the selection process for best revenue models. webnexs provide an expert consultation panel that understands your particular business needs and helps you to choose the best revenue models that match your VOD business.

Read more: OTT App Development: How & Why You Should Develop OTT Application For Your Brand?

Frequently Asked Questions

1. What is the Video on Demand Revenue model?

When it comes to monetizing content, the three most common revenue models for (video-on-demand) vod platforms are SVOD, TVOD, and AVOD. Although the initials stand for ‘Subscription Video On Demand’, ‘Transactional Video On Demand’, and ‘Advertising based Video On Demand’, these models can also be used for linear television and live broadcasting services. It is important to select the right model for your service in order to maximize your business revenues.

2. Which VOD revenue model is best for your Video streaming business?

With so many VOD revenue models to choose from, it can be difficult to figure out which one is right for you. Advertise provides a great way to quickly generate income through short content, making AVOD an ideal choice. For those content aggregators with longer pieces of software, subscriptions are the best option for constant revenues. Other available OTT revenue models include PPV, catchup TV, coupons, and promotions – giving you plenty of options when it comes to increasing your profits.

3. How does a content owner earn money in a VOD Platform?

Every VOD platform has its own customer base, every content has its own value. They handle monetizing their content with amplified revenue-building opportunities via SVOD, TVOD, AVOD, PVOD, Catchup TV, etc.

Comments

30 responses to “Best Video on Demand (VOD) Revenue Models for your Video Streaming Business 2024”

  1. Blesslin Avatar
    Blesslin

    Hi, just wanted to mention, I loved this post Video on Demand Revenue models for Video Streaming Business. Keep on posting!

  2. annie Avatar
    annie

    Really enjoyed this article. Thanks Again. Keep writing.

  3. Roseline Avatar
    Roseline

    A round of applause for your blog article. Cool.

  4. Thomas Avatar
    Thomas

    This blog help audience to select their revenue model for their vod business

  5. Jack Avatar
    Jack

    hello suresh! can you assist us with which revenue model is suitable for our business?

    1. Suresh Avatar

      Sure jack. kindly share your detail at [email protected]

  6. Alex Avatar
    Alex

    Informative blog. Explained clearly on monetization models for video on-demand services.

  7. vanie Avatar
    vanie

    Good blog on VOD revenue model. Thanks for sharing

  8. Bruce Avatar
    Bruce

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    Jerry

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  10. Joannah Avatar
    Joannah

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  11. Selvyn Avatar
    Selvyn

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  16. George Avatar
    George

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  17. Ahmed Avatar
    Ahmed

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  20. Janani Avatar
    Janani

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  21. Uganda Avatar
    Uganda

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  22. JENNY Avatar
    JENNY

    Kindly guide me to start my own video on demand platform.

  23. hutson Avatar
    hutson

    I thought your article provided a comprehensive overview of the different VOD revenue models available and the factors that should be considered when choosing the right one for a particular use case. Thanks for sharing your knowledge and expertise on this topic, and I look forward to reading more of your work in the future!

  24. pestron Avatar
    pestron

    I also found your explanation of the hybrid revenue model to be particularly interesting. This model combines multiple revenue streams, such as advertising and pay-per-view, in order to maximize revenue while minimizing user interruptions. Your advice on how to implement this model effectively, such as by offering ad-free viewing for subscribers, was practical and insightful.

  25. Jackson Avatar
    Jackson

    Additionally, I appreciated your discussion of the importance of maintaining a balance between revenue generation and user experience. As you noted, it’s essential to provide users with high-quality content and a seamless viewing experience in order to keep them engaged and coming back for more. By choosing a revenue model that is user-friendly and provides value to the user, content creators can ensure long-term success.

  26. Avery Avatar
    Avery

    The blog was a valuable resource for anyone looking to monetize their digital content through VOD. Your insights and expertise on this topic were evident throughout the article, and I look forward to reading more of your work in the future!

  27. Carter Avatar
    Carter

    Another aspect of your article that I appreciated was your discussion of the benefits and challenges of each revenue model. You provided readers with a balanced view of the different options available, including the potential revenue streams, the level of user engagement required, and the scalability of each model. This information is crucial for making an informed decision about which revenue model to use.

  28. Harper Avatar
    Harper

    One thing that stood out to me was your emphasis on the importance of choosing the right revenue model based on the type of content being offered and the target audience. As you noted, different revenue models are better suited to different types of content and user demographics. Your advice on conducting market research and testing different revenue models was particularly helpful in this regard

  29. Michael Avatar
    Michael

    Hi there! I just read your article on the best video on demand (VOD) revenue models for businesses in 2022, and I thought it was a really useful resource for anyone looking to monetize their digital content. Your article covered a wide range of VOD revenue models, from advertising and subscription-based models to transactional and hybrid models, and provided readers with insights into the pros and cons of each

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