But let’s be real, choosing the best video monetization platform in this diverse universe can become challenging sometimes. That’s where we hop in, to help you understand everything there is to know about these platforms and how you can effectively use them.

The rise of video monetization platforms has opened a lot of doors for broadcasters and content creators. Number of digital video viewers worldwide has risen from 2.78 billion in 2019 to 3.48 billion in 2023. There has never been a better time to join and be part of this revolution.

In this blog, we will explore the topic of video monetization platforms in detail. It does not matter if you are new to the game or have some prior knowledge, we have got you covered. We will explore different monetization models like AVOD, SVOD, and TVOD. We will also talk about the latest and best monetization platforms in 2023 for every model which will help you make an informed decision and take your video monetization strategy to the next level.

It is about time you turn your views into revenue and leave your mark in the ever-expanding world of video content. Let’s get started, first thing first,

What Is a Video Monetization Platform?

Video Monetization Platform is a web application that allows content creators, online educators, broadcasters, and media companies to host their video content online and generate revenue from it. These platforms generally offer different ways to monetize the content like through advertisements which is AVOD, subscriptions which is SVOD, transactional which is TVOD (also known as pay-per-view model), or direct sales of merchandise related to video content.

Before we get into the best video monetization platforms for your business. It is important to understand all the monetization models in detail. These model can be divided into 5 major categories as follow,

1. Advertising-based Video on Demand (AVOD)
2. Subscription-based Video on Demand (SVOD)
3. Transactional-based Video on Demand (TVOD), also known as Pay-Per-View Model
4. Premium Video on Demand (PVOD)
5. Membership and Patreon Model

Now the next question is how to choose the right monetization platform for you. This largely depends on the type of content, your audience size, revenue goals, and more. We will discuss this in detail later.

First, let’s talk about all the monetization models in detail,

What Is the AVOD (Advertising-based Video on Demand) Monetization Model?

AVOD or Advertising-based Video on Demand model is the most common of all. It has a straightforward proposition, that is users can access unlimited content as long as they sit and watch advertisements in between. This model is quite a game changer in the video content industry. 

AVOD is a simple yet effective model that helps the platform offer an extensive range of content without the barrier of subscription fees. The most popular example is YouTube where in the free plan you see skippable and sometimes non-skippable ads in between. YouTube shares its revenue from advertisements with the content creators, which motivates them to keep creating and posting content. Other popular AVOD models include video monetization platforms like Hulu, Tubi, and Rumble.

Also note that AVOD is just limited to large platforms. It is also popular among small user-generated video platforms as well. On top of that, AVOD platforms have a competitive edge over other models in reaching a wider audience, users who are reluctant to pay for subscription services. It is a viable alternative to the subscription-based model that we will discuss next.

What Is the SVOD (Subscription-based Video on Demand) Monetization Model?

Unlike AVOD, where the revenue comes from advertisements. SVOD relies completely on users paying a monthly or yearly subscription fee to watch video content. It has a buffet-like approach where you pay one time for exploring and consuming content.

Popular video monetization platforms that utilize this model are Netflix, Hulu, Disney+ (formerly Hotstar), Amazon Prime, and e-learning platforms like Toppr, Vedantu, and many more. With the SVOD model, users can consume a diverse range of shows, lectures, movies, and more without the interruption of ads. This model is more successful with online education videos as no one wants to see ads while learning, as it causes a distraction.

While the above-discussed platforms have thousands of hours of content, it is assumed that an average user will only consume a fraction of this time. If every user gets on consuming maximum bandwidth (data usage while streaming) by watching an extraordinary amount of videos, it could lead to operational losses.

What Is the TVOD (Transactional-based Video on Demand) Model?

TVOD is like the new kid in the block that is becoming increasingly popular in the streaming-based era. As the name suggests, you do a transaction to rent or buy specific content you desire. This model is also known as the Pay-Per-View model, which means pay for what you watch. This model offers something different and is for people who don’t want to be tied up to a subscription to watch video content.

So what’s the big deal with this model? Imagine you are in a shopping mall and you see the price tag for different clothes. You like something, pay for it, and bam – it is yours! With the subscription model, you often end up paying for a bunch of stuff you will never watch. For the creators, this is a pretty sweet deal too, as they are getting more aware of what’s hot and what’s not, which helps them manage costs and risks. So there is no shooting in the dark!

And then there is another disadvantage with subscriptions: you often get overwhelmed with the content, just like in Buffet. So TVOD model is perfect for decisive viewers who know what they want but if you’re someone who likes to browse and try before watching, you might find this model limiting.

Some popular examples of TVOD video monetization platforms are Amazon Prime, YouTube, Apple iTunes, Google Play Movies and TV, Vudu, Bookmyshow, and more.

What Is the PVOD (Premium Video on Demand) Monetization Model?

Premium-based Video on Demand is the newest of all. This is sort of a variation of a TVOD, the catch is you can access the content way before the release, hence the name premium. Imagine you’re a big Marvel fan, and a new movie is about to be released. With PVOD you can watch the movie at the same moment, before the release with a few extra bucks. That’s PVOD for you. You get premium access at a premium cost.

This model is a game-changer for streaming services. Why? Because now they are not just sitting idle and waiting for subscribers anymore. They are actively working on getting early bird specials. Luring customers with the new and shiny content and keeping them around with the rest of the content. 

PVOD gives users the feeling of that extra without them having to wait too long to watch premium video content. Movies like “Free Guy”, “Boss Baby 2”, and “The Flash” are examples of films that used the PVOD model.

What Is the Membership and Patreon Monetization Model?

The Membership model represents an innovative approach to content monetization particularly in the world of digital media and online video creation. It is sort of an evolution of the SVOD model, where you pay to watch some exclusive content behind a paywall for some fee. However, unlike subscribers, patrons feel a part of something special, a sense of community and belonging.

Patreon platform was launched in 2013 and is a membership platform where creators get to monetize their content using fans aka patrons’ support.  A diverse range of content creators such as musicians, podcasters, artists, and video creators receive the fee directly from their supporters who then become patrons. 

Both the membership and patreon models have some similarities in terms of providing exclusive content to premium members. The difference is in the approach and focus, like the membership model is more about creating a community and belonging while the patreon model is about direct support and engagement between creators and fans.

What is a Hybrid Video on Demand Monetization Model?

Apart from these, hybrid VOD models are also popular now which use a combination of two or three of these models. For example, YouTube (AVOD & SVOD) and Amazon Prime (TVOD & SVOD). Hybrid models can be further classified into – 

1. Freemium with Premium Content – that offers free content along with premium content on extra purchases. Example, YouTube, Peacock.

2. Transactional and Subscription Combo – this is just like gym membership, where you pay extra for personal trainers and all other services are free. Example, Amazon Prime Video, and Apple TV+.

3. Ad-based alongside Subscription – the one that shows ads in between but if you want to have an uninterrupted watch session, you can opt for subscription. Example, YouTube, CBS (now Paramount+), and Hulu.

4. Limited-time free access – the one where they offer a movie or show for free for a limited time or for limited content (like just the first episode) and once you get hooked, you got to pay to watch more. Example, HBO Max and Disney+.

This was all about VOD models. Our next segment is how to choose the right video monetization model for your video monetization platform.

How to Choose a Video Monetization Model?

Now it’s time to slice and dice these models to match different industries. We talked earlier about how to go around choosing the top video monetization model for you. This largely depends on,

Target Audience Preferences

What does your audience like? What kind of content are they into? How do they like to consume the content? Are they comfortable with paying or prefer free access with ads?

Nature of Content and Quality

Is your content exclusive or for a global audience? Does your content get released regularly or is more seasonal? Like regular content works well with SVOD while sporadic content can be TVOD.

Revenue Goals

Are you looking for upfront revenue (TVOD) or aiming for steady recurring pay (SVOD)? Do you want to maximize profits quickly or slowly build a community before you sell?

Market Competition

What monetization models your competitor uses? Do you want to use the same or stand out with a different approach? Like if your target market is already saturated with subscription services, you can offer a freemium or ad-based model.

Technology and Infrastructure

Can you manage high-quality streaming (idle for SVODs)? Lower quality streams benefit from ad-based. Does your platform have the capability to offer a seamless experience for subscription or transactional models?

Brand Identity and Value Proposition

Your VOD model should align with your brand identity and value prop. For example, if exclusivity is part of your brand, a premium model makes more sense.

Scalability and Flexibility

Since the digital landscape changes very quickly, your model should be able to adapt and scale as and when needed.

Always remember with VODs there is no size fits all approach. Just like cooking, where you adjust the quantity and ingredients based on arriving guests. The same goes with the VOD models. It has to be tailored to your audience, nature of content, and business or revenue goals.

Which Video Monetization Model Best Suits Your Industry?

Now let’s come back to slicing and dicing these VOD monetization models to match different industries that we talked about earlier.

Music Industry

Freemium with Premium content, is one of the hybrid VOD models that we discussed earlier. For example, YouTube Music and Spotify. You can browse through a wide range of music libraries for free with ads in between and if you prefer no-ads interruptions or other advanced features like creating a playlist or offline listening, you can buy a premium subscription.

One can also opt for TVOD monetisation in this case like iTunes and Bandcamp. Here music artists can directly sell their content to their fans. Great for musicians who have a loyal fan base.

Movie Industry

The SVOD monetization model is the most popular choice in the movie industry. Platforms like Disney and Netflix use this model to attract movie buffs by offering them a large library of movies for a monthly subscription fee.

In this case too, one can opt for the TVOD model, ideal for the latest releases or special screenings. Platforms like Amazon Prime, Google Play Movies, and YouTube let users rent or buy movies at a one-time fee.

TV Shows and Series

Besides the SVOD model, same as we discussed for the movie industry. Hybrid Ad-based with a Subscription-based VOD model also works great here. Popular platform Hulu uses this model where they offer ad-based subscriptions for a cheaper fee for casual viewers and premium ad-free access for binge watchers.

Educational or Elearning Industry

Platforms like Coursera, MasterClass, and Reforge use a subscription-based monetization model because it works well in this industry, providing a wealth of educational content for a recurring fee, ideal for continuous learners.

Freemium with Premium Hybrid models also does well in this industry. Think of platforms like Duolingo and Khan Academy, which offer free educational content with an option to upgrade for more features and no ads experience.

Niche Content (like Fitness or Cooking)

The membership subscription model works in niche content. Platforms like Freeletics, and Centr in Fitness offer membership programs with monthly or yearly subscription fees.

If you want to attract a wider audience, you can also go with the ad-supported content program without a paywall. Just like on YouTube, a lot of fitness and cooking content creators rely on ad revenue while offering free access to their content.

Every industry has its unique nature and needs, so carefully picking the right VOD monetization model is the key here.

That’s all about it video monetization models. By now you must have a clear understanding of VOD streaming and monetization models around it. A VOD platform hosts video content online and shares it with the help of CNDs (Content Delivery networks). Another important aspect of VOD streaming is securing web hosting. A lot of platforms offer a seamless playback experience backed by DRM encryption.

DRM techniques help secure the content by making it difficult for hackers to hack into your platform and sell your content elsewhere at cheaper prices. If your content is not protected, it can lose its value and ultimately the revenue. You must have noticed if you try to take a screenshot or capture a video on Netflix with any recording tool, it doesn’t allow you. That is because it is backed by DRM. 

Enter VdoCipher!

VdoCipher is the most popular secure web hosting solution used by many B2B e-learning businesses to secure their online content. It uses a multi DRM solution which allows creators to secure their content across multiple devices and operating systems. An added bonus is you also get advanced user-based analytics which can further help you optimize your content strategy based on watch time and at the same time look out for suspicious activities.

In conclusion, the landscape of video-on-demand monetization is vast and varies from industry to industry, including type of content, revenue goals, and business vision. Whether you are a musician, online educator, filmmaker, or simply a content creator in a specific niche, there is a tailored video monetization model fit for you. The key is to understand your needs and then make a decision. Simply by making informed decisions and leveraging proper monetization strategy, you can maximize your revenue and can also improve your audience’s watching experience. It’s about time you take your video content seriously and convert those views into a stable revenue stream. Good luck!

A Quick Recap And FAQs Around Video Monetization Platforms

1. What is a Video Monetization Platform?

A Video Monetization Platform is a web application that allows content creators, educators, broadcasters, and media companies to host video content online and generate revenue from it through various monetization models such as advertising, subscriptions, transactions, or merchandise sales.

2. What are the Different Monetization Models for Video Content?

There are five major video monetization models,

• Advertising-based Video on Demand (AVOD)
• Subscription-based Video on Demand (SVOD)
• Transactional-based Video on Demand (TVOD), also known as Pay-Per-View
• Premium Video on Demand (PVOD)
• Membership and Patreon Model

3. How Do I Choose the Best Video Monetization Platform for My Content?

The choice of the right model depends on factors like your target audience preferences, the nature and quality of your content, revenue goals, market competition, technology and infrastructure, brand identity, and scalability. You should tailor the model to align with your specific needs.

4. Which Video Monetization Model Suits Different Industries?

Different industries have different preferences,

• Music Industry: Freemium with Premium content and TVOD
• Movie Industry: SVOD and TVOD
• TV Shows and Series: SVOD and Ad-based with Subscription-based VOD
• Educational or E-learning Industry: SVOD and Freemium with Premium
• Niche Content (e.g., Fitness or Cooking): Membership subscription and Ad-supported content

Akash Kandari

Hi, I am Akash, an engineer turned marketer. I talk about SaaS products, video tech, and product marketing. When not working I enjoy my time watching anime, learning something new and hanging out with friends & family.

The post A Comprehensive Guide to Video Monetization Platforms and Models for Digital Revenue appeared first on VdoCipher Blog.