While the term “OTT video” may not come easily to mind, we’re willing to guess you’ve already consumed plenty of “over-the-top” stuff. Why? “Because more than 92% of OTT households have Netflix, Hulu, or Amazon Prime subscriptions, and average Netflix users watch about two hours every day, with watch time only increasing.”
When it comes to entertainment streaming services, you’re likely to think of at least one of the “Big 3” (Netflix, Amazon, and Disney, which encompasses both Hulu and Disney+). While more major providers, such as CBS All Access, HBO MAX, and Peacock, are entering the “streaming wars,” consumers are also interested in smaller players. That’s when you enter the picture. Here are two reasons why now is an excellent moment to enter the streaming market.
A subscription video on demand (or SVOD) model makes the most sense as a baseline monetization strategy for an OTT entertainment firm the majority of the time. A customer pays a monthly or annual membership price for access to your content if they use SVOD.
If you don’t have a large content library upfront, transactional video on demand, or TVOD, is a better option. TVOD allows your consumers to buy video material a la carte, usually one at a time — think of it as a digital version of video renting
A live pay-per-view business model is another alternative for monetizing your video content. You’d charge a one-time fee for an exclusive live event like a virtual screening premiere or a Q&A with the actors or filmmakers in this situation.