The video streaming industry is thriving and evolving. Companies realize the potential of video streaming platforms and launch their own ones. They can go live and communicate with their customers in real-time or create video-on-demand (VOD) platforms and publish content that is available at any time.
If you are interested in launching your VOD service, you should probably create an OTT business plan. If you are looking for a solution, we recommend you contact Setplex. The team can provide you with the solution to achieve your business goals.
Why should businesses think about VOD platforms?
VOD platforms are good for video content monetization
Professional OTT companies and video streaming platform providers embed many features so that your OTT strategy is revenue-generating. There are the following models:
- AVOD monetization model: In this case, the videos are stored on servers and are available for free. Viewers don’t need to purchase anything. They just watch ad videos instead. This monetization model is profitable for both sides – the business and the user. Users save their money, and businesses make revenue by allowing third parties to run their ads on the platform. The targeting is usually accurate. As a result, people who are really interested in the product or service advertised get to watch the ad.
- SVOD monetization model: It is well-known thanks to Netflix and similar services. People purchase access to video content for a monthly or annual period. When the paid period ends, the subscription can be canceled or renewed. However, there is subscription fatigue observed among viewers due to many subscription-based video streaming services in the market. That’s why businesses are now introducing new payment approaches or switching to an ad-based model.
- TVOD monetization model: It is also known as a pay-per-view model. It means that viewers pay only for a video or a bundle to watch. The rest of the content is inaccessible and requires additional payment.
Businesses also use a hybrid revenue-generating model. For example, they combine an ad approach and subscriptions. As a result, viewers can choose whether they don’t want to watch ads, and they can pay for an ad-free subscription or if they are OK with watching ads, they can save money.
As a result, VOD platforms allow you to make revenue by selling access to videos. Make sure these videos are valuable for viewers. Remember that content is king.
VOD platforms are convenient – that’s why you will likely have many viewers
People are cutting the cable or satellite television cord and switching to online video streaming services. Viewers find them more convenient and flexible. There is no more schedule, and the content is usually more varied and interesting than traditional television can offer. VOD platforms offer videos available at any time. They are stored on servers, and everything a user needs to do is click on the play button. After that, they can enjoy the video. And there is no need to wait for a video to air.
VOD platforms are available across many platforms, including smartphones, Smart TVs, tablets, and computers. Viewers can use any device they want and have to enjoy the content. They don’t need to buy a gadget to stream videos. Moreover, VOD platforms allow consumers to view videos wherever they are. They can sit in a cafe or in the park and use the video streaming platform. It gives freedom to plan your day and enjoy videos whenever you want. Everything necessary is an internet connection.
Platforms providing video-on-demand content are popular among businesses and viewers. People appreciate convenience and interactivity, and companies can reach more people with their videos and attract more customers. Consequently, they can increase the revenue they earn.
Photo credit: The feature image is symbolic and has been done by Andrew Lozovyi.