How Does VOD Streaming Platform Earn Money

Do you want to learn how VoD streaming platforms make money? You're not the only one. This post will help you answer your questions.

People are cutting the cord more and switching from traditional TV to on-demand and live video. It is easy to see why: internet-based video delivery offers better quality, affordability and accessibility.

Many consumers now have many options thanks to VOD technology and the booming VOD marketplace. There are hundreds of streaming services, each with its own features, benefits, and ad content.

With an increase in VOD viewers, more streaming providers and publishers are launching and monetizing VOD app. Think about the fact that more than 25% of American households use at least five OTT applications each day. There is plenty of room on the market, despite the intense competition.

But how can publishers make money on VOD services? What are the most effective VOD monetization strategies? How can you know if you are ready to launch a VOD application? These are just a few of the questions that we'll answer in this article.

What is a VOD Streaming Platform and how do you use it?

VOD stands for Video on Demand. This is a video that viewers can stream whenever they want. This can be done either by downloading the video to your device to view later, or via direct streaming from an internet source.

This is in contrast to standard broadcasting where viewers can only view their video during a specified period of time and on a device that has a cable or satellite connection.

Video on Demand began as pay-per view broadcasts of movies and live events via satellite and cable connections. It has since moved to the digital age with fast internet access and mobile devices.

How does the VOD Streaming Platform make money?

There are three main video monetization model classifications. These models are based on the way the rights holder earns its share of the revenue compared to how content is presented to consumers. These models include:

1. Transactional VOD (TVOD).

A transactional model allows the consumer to rent a content unit at a fixed price. The price range could be between $1.99 to $15.99, with the duration varying from forty-eight hours up to thirty days. The transactional model uses EST (electronic sale-through), also known as DTO (download and own), which offers a digital sale with unlimited, perpetual viewing.

This model is used by Amazon, Vimeo, iTunes, CinemaNow, Blinkbox and Vudu.

2. 2. Advertising-based VOD (AVOD).

The AVOD monetization model has many options, including skippable, not, full screen, bucketed or full screen, pre-roll and mid-roll, as well as other formats. AOL One, Google AdSense and YuMe offer video advertising services, including Brightroll, SpotExchange, SpotExchange, SpotExchange, SpotTube, Auditude, YuMe, Videology and YuMe.

If one is used, the ad revenue is split between the platform and the rights holder. Most deals are 70/30, 50/50 or 50/50. YouTube offers one extreme 45/55 (not for the producer) and Vimeo 90/10 (10 in favor of producer).

3. Subscription VOD (SVOD).

This subscription model was popularized by Netflix. This subscription model is legendary because it was based on a DVD-like transactional system. Standard subscription fees range from $8.99 to $9.99. Prices for price battles in certain territories range from $3.99 to $5.99.

Hulu Plus and Amazon Prime are currently the market leaders. However, there are other niche players such as Mubi or Fandor. Netflix does not release any data but experts say that a two year non-exclusive, $5,000 commission is typical. A negotiation of $10,000 to $20,000. It is possible to negotiate a huge, but rare, $50,000 deal.

4. Hybrid VOD

It is not only VOD-based, but there are three other nuances worth mentioning. Hybrid options combine TVOD and SVOD LIKE Sony’s Playstation Vue and Xbox Live, Canada's CraveTV and Roku. This adds an additional component to the viewer's viewing experience, by collaborating with the physical technology alongside the VOD platform.

Other self-supported services, such as FilmBuff and DotStudio, allow content creators to upload their material and receive marketing, platform, and hosting services.

How to Choose the Best VOD Platform Provider

Do you want to create your own VOD platform. You will need to hire a top video on demand platform provider. There are many VOD service providers on the market, but it is important to choose one that suits your needs and matches your content strategy.

A VOD solution provider that is efficient and effective must have the most current technologies and features. These are also future-proof. You will be able to scale up and stay relevant if you have a strong IT infrastructure.

You should also pay attention to payment gateway support and monetization models if your VOD platform is to be profitable. The service should be affordable as streaming and content creation requires large upfront investments.

Last Thoughts

Businesses have a lot of options when it comes to video-on-demand streaming. It can be confusing to learn how VOD streaming platforms make money. You can achieve greater success with careful planning and prudent investments.

However, traditional TV broadcasting is expected to shrink at a compounded annual rate 1.5 percent between 2020-2026. VOD is the best option for you, especially if your goal is to create video content.

We hope that you find this informative and engaging. Are you ready for a lucrative career with VOD streaming services? We wish you all the best on your journey!