Monetising OTT Content: Strategies That Play a Big Role

It's no secret that even passionate professionals need to pay their bills. This is why many experts across different industries look for ways to make money from their work.

When it comes to OTT, there's no denying the impact it has had on the way we consume content. With billions of viewers worldwide enjoying shows, movies, and original content on demand, the industry is expected to reach $ 22.1 billion by 2032, showing a growth rate of 21.93% during 2024-2032, according to IMARC. Despite this growth, the challenge remains for creators and providers on how to make money with OTT platforms.

To address this challenge, we've compiled a list of strategies that can significantly help in monetising OTT content. So, let's explore techniques that can assist creators as well as providers in maximising their revenue and continuing to create engaging content. But before that, it's essential to understand what OTT content monetisation is all about.

What is OTT Content Monetisation?

OTT content monetisation involves profiting from content assets that are owned, sold, or licensed for distribution on one or more OTT media platforms or video streaming services.

Simply put, this process aims to maximise the financial benefits of digital content through methods such as advertising, pay-per-view, sponsored content, and subscription-based models. Effective content monetisation not only ensures that artists get paid for their work but also establishes a solid foundation for the expansion of their businesses.

OTT Content Revenue Models

Subscription-Based Model

Among other strategies, the subscription-based model stands out. With the help of this strategy, platforms can generate a steady revenue stream by offering subscribers access to a library of content, fostering customer loyalty, and bundling subscriptions with other services. This model provides a predictable income source, encourages long-term engagement, and creates opportunities for creators as well. However, to thrive in the competitive OTT landscape, platforms and creators must continuously invest in content acquisition and adapt to evolving consumer preferences.

Pay-Per-View OTT Content

The pay-per-view (PPV) model offers a lucrative opportunity for OTT platforms to monetise their content. By allowing viewers to pay a one-time fee for access to specific content, platforms can generate significant revenue from high-demand content. Effective PPV strategies involve curating premium content, setting competitive prices, targeted marketing, bundling with subscriptions, and leveraging data analytics to understand viewer preferences. For example, sports streaming platforms, movie and TV platforms, and concert streaming services can benefit greatly. By carefully considering these factors, OTT platforms can maximise revenue and provide value to their audience through the PPV model.

In-App Purchases on OTT Platforms

Next on the list is the in-app purchase model. It is a powerful avenue for OTT platforms to monetise their services. By providing virtual goods, premium content, or tiered subscription options, platforms can encourage users to make additional purchases within the app. This not only generates extra earnings through OTT platforms but also enhances the user experience, provides customisation opportunities, and offers valuable insights into user preferences. By carefully selecting in-app purchase options that align with their target audience and content strategy, OTT platforms can effectively monetise their services and deliver a satisfying user experience.

Content Licensing for OTT

Content licensing is a lucrative B2B opportunity, allowing platforms to tap into existing content libraries and creators to earn passive income. By licensing their content, creators can expand their reach, generate additional revenue, and build brand awareness. Furthermore, service providers can also benefit from a diverse content library, reduced production costs, and access to established content. Thus, to ensure successful licensing agreements, parties should clearly define rights ownership, territorial restrictions, royalty structure, term and renewal, and exclusivity.

Ad-Supported OTT Content Strategies

Finally, there are ad-supported models. When it comes to this model, it is an excellent solution for a wide range of creators and platforms. Platforms earn income by carefully putting advertising within content without asking viewers to pay in advance. Targeted advertising based on user demographics and viewing behavior, restricted ad breaks to reduce disturbance, and sponsored content partnerships with relevant brands are all effective tactics. To maximise revenue, platforms constantly optimise ad placement, maintain ad quality and track campaign performance.

Unlock the Full Potential!

For both content creators and service providers, OTT platforms present a direct-to-consumer revenue channel. However, the continuous argument over subscription vs. ad revenue for OTT platforms shows the little impact in terms of selecting the right option. To deal with it, the key is in the outcome: subscription-based models assure continuous revenue, but ad-supported models provide more reach.

In essence, the effective monetisation of OTT content demands a comprehensive approach. Thus, by embracing innovative strategies and diversifying revenue sources, stakeholders can fully unlock the potential of the OTT industry.