Over-the-top (OTT) video is a broadcasting technology that delivers video content to viewers directly to viewers over the internet. OTT bypasses traditional content controllers and distributors such as cable, broadcast, and satellite television platforms. The advantage of OTT video is that users can watch videos from any device with an internet connection, including smartphones, tablets, connected TVs, computers, and more. This removes the need for a tangle of wires and cumbersome gear.
Consumers have a plethora of providers to select from as a result of the advancement of OTT technologies and the thriving OTT industry. There are hundreds of OTT streaming services available, each with its own set of perks, features, and content.
More than 50 million consumers are expected to transition from conventional TV to OTT by 2022. As a result, the market will only continue to rise. As OTT streaming is getting more popular, there are several opportunities for content creators, production companies and broadcasters that wish to monetize their own OTT streaming services.
ATC Online introduces the PACIFYCA OTT Platform, a system designed to give comprehensive video monetization capabilities and simple integration with your OTT app. We provide entire Android, iOS, and tvOS SDKs to broadcasters, allowing for smooth interaction with all sorts of OTT apps.
Let us now look at the monetization options supported by PACIFYCA.
MONETIZATION BASED ON SUBSCRIPTION (SVOD)
Subscription-based Video on Demand (SVOD) companies charge a recurring price for full access to their video platform on a weekly, monthly, quarterly, or annual basis. Netflix pioneered the SVOD model. It is worth noting that, while earning less than ad-based models, subscription-based monetization is the OTT monetization strategy with the greatest revenue-per-user today. With simple unsubscribe procedures, SVOD is one of the most profitable revenue streams and accounts for the majority of the OTT business.
The SVOD strategy is ideal for companies looking for long-term value by providing consistent quality content in the form of movies, TV series, originals, and so on. It is mainly appropriate for firms who specialize in entertainment, health, fitness, eLearning, and other content. It’s an extremely efficient approach that generates consistent revenue from every consumer. One of the primary reasons for SVOD’s popularity is that it is the most profitable model for publishers with enormous audiences due to its high revenue-per-user. Another enticing feature is that it is one of the most effective monetization strategies for production companies with exclusive and original viewing content.
It should also be highlighted that SVOD OTT streaming solutions necessitate more work and investments in order to properly place your platform in the ideal target demographic. It also necessitates the adoption of the greatest security and encryption solutions to satisfy the expectations of the user.
MONETIZATION WITH TVOD MODEL
Transactional Video on Demand (TVOD) is a rental-based VOD monetization business model in which the user pays a price to rent the content or have access to the service for a certain time. This Pay-per-view monetization approach is an OTT monetization technique that allows consumers to buy particular broadcasts or movies that they want to watch. This strategy is based on the concept of one-time payments, which means that consumers get limitless access to on-demand material that they pay for. As a result, TVOD is a more cost-effective revenue approach for viewers who are only interested in a limited number of viewing content.
The most appealing reason why TVOD is an excellent choice is its speed. Consumers can obtain desired material by renting or purchasing it before the general availability of certain media content. TVOD services help businesses retain clients by providing seasonal entertainment content. This method is appropriate for tutorials, classes, sports, and other seasonal activities.
TVOD is also ideal for live streaming services such as seasonal entertainment and sports events. For a steady income stream, it is ideal to combine a TVOD model with another VOD monetization technique. TVOD is a clear and simple strategy that is ideal for delivering one-time video content. Consumers’ freedom of choice allows firms to charge or offer discounts on content pieces accordingly. Customers are more likely to pay for high-quality material that they plan to view.
HYBRID MONETIZATION
A hybrid monetization model combines two or more VOD monetization techniques. For example, content aggregators may use an ad-based monetization approach for their entire video library, with the exception of their premium shows, which they may shroud behind a payment-only view.
A Hybrid Monetization approach is also adaptable and one of the most effective methods to connect with your audience. Giving your visitors the choice to experience your platform for free with advertisements and then decide whether they want to subscribe later is a great method to gain their confidence. Maintaining a trustworthy relationship with your visitors is also an excellent approach to encourage them to buy your premium content later on. In a highly competitive OTT landscape, a hybrid VOD monetization approach may prove to be the best solution. It provides users with the best of both worlds in terms of TVOD, AVOD, and SVOD.
The hybrid VOD monetization approach is ideal for firms who want to reach a large number of people. The second critical factor is that your platform have a large library of content to appeal to each audience type. As a result, by using diverse monetization techniques, you may address the demands of varied users. The main advantage of Hybrid VOD over other VOD models is that it offers the best of each monetization type. It also gives you flexibility because you can mix certain benefits from each strategy to develop your own hybrid monetization plan.
ADVANTAGES OF OTT MONETIZATION WITH PACIFYCA OTT SOLUTION
- BEST IN CLASS SECURITY: Secure video streaming is a must for every OTT platform. Securing your content against piracy is critical to secure your revenue. As a result, ATC Online’s PACIFYA OTT solution is perfectly positioned to meet your requirements, with advanced security features such as customized security and other best in class anti-piracy methods. PACIFYCA also guarantees required integrations and secure payment gateways for SVOD and TVOD models. PACIFYCA OTT Streaming Solution is completely integrated with Amazon Web Services for easy storage, transcoding, and video ingestion. This provides you total piece of mind when it comes to the security of your video. The AWS elastic services ensure that you only pay for what you use.
- EASE OF INTEGRATION: PACIFYCA from ATC Online is simple to integrate with your OTT app. We provide Android, iOS, and tvOS SDKs for easy integration with all Android devices and Android-operated Smart TVs, iOS mobile phones, and Apple TV.
- MULTIPLE OPTIONS TO MONETIZE DIGITAL CONTENT: ATC Online’s PACIFYCA enables multiple monetization options. This is especially important for broadcasters considering a mixed monetization approach.
CONCLUSION
As we witness a massive seismic change in consumer content viewing patterns, it creates an opportunity for every OTT provider, regardless of budget, size, or sector. We should expect more creative ways to the ever-changing OTT market as SVOD, AVOD, and TVOD monetization models continue to evolve. The PACIFYCA from ATC Online is appropriately placed. Our platform provides cutting-edge monetization solutions that might help you significantly increase your OTT revenue. Do you want to learn more about our OTT Solutions? Look at the link below!
https://atconline.biz/products/ott-platform-for-video-streaming-services/