“A content creator is an individual who uses their influence, skills, and creativity to amass and monetize an audience online.”

What is Content Creator Economy?

The creator economy is a term to describe the growing trend of content creators, curators and community builders making a living off of their online creations. It can include everything from YouTube videos and podcasts, creating and selling online courses, social media influencer marketing, and blogging. It also includes other businesses supporting the creators, such as analytic platforms, video hosting services, and advertising firms. There has been a big rise in the number of tools to create, share, monetize and gain an audience. Creators are rising, and anyone can now create and contribute to the creator economy.

The major components of a creator economy are

• Creators
• Consumers or Target Audience
• Platforms (to create, distribute, consume and monetize content)
• Prospective Businesses and Brands
• Tools & Services to assist in content creation

According to the payment company Stripe, “the number of creators went up by 48% in 2021, compared to 2020 on its 50 most popular creator platforms. If this exponential growth continues, these 50 platforms in themselves will contribute to 15.5 million creators in five years”.

Who is a content creator?

A content creator produces and shares written, visual and entertaining content, usually digital. Content creators is a broad term covering different works and mediums to disperse the work. In this blog, the term “content creator” refers to someone focused on creating content to target an interested specific audience and connect with them.

The content produced is mostly original and commonly includes YouTube videos, blogs, social media posts, and much more. The content distribution is via social channels like Instagram, YouTube, personal websites, and more.

Content is the soul of creators, and the focus is on creating fresh content or adding value that interests, informs, and educates their audience. Each content field requires creators to have the proficiency to thrive and earn, including good communication, proper knowledge, and engaging content delivery.

Historical Evolution of the Creator Economy

Early 2000s – Birth of Blogging

• People began sharing content online.
• Platforms like Blogger provided tools.
• Monetization mainly through ads and sponsors.

Mid-2000s – Rise of YouTube

• YouTube launched in 2005.
• Video creators could monetize through AdSense.
• The partnership program helped creators earn.

Late 2000s – Social Media Growth

• Platforms like Facebook, Twitter expanded.
• Influencers began to emerge.
• Brand partnerships and sponsored content became popular.

Early 2010s – Emergence of New Platforms

• Instagram, Snapchat, TikTok launched.

Diverse content formats evolved.

• Influencer marketing industry grew significantly.

Mid-2010s – Subscription Models

• Patreon allowed subscriptions.
• Creators earned directly from fans.
• A new, more sustainable revenue stream developed.

Late 2010s – Expansion of Tools & Platforms

• More platforms provided monetization tools.
• Live streaming, eCommerce integration flourished.
• Creator-focused startups emerged.

2020s – Mainstreaming and Growth:

• Pandemic increased online content consumption.
• New platforms and features continued to launch.
• Creator economy valued at approximately $104 billion by 2021.

Factors contributing to the rise of the creator economy

There are several factors that contribute to the rapid growth in creator space and boost the creator economy. Some of these common factors include

The rise in internet usage and the globalization of content consumption

According to datareportal insights, by the start of April 2021, over 300 million people worldwide started using the internet in the past 12 months. The annual change in the number of global internet users is more than 7.6%. The demand for creative content will likely grow with the world becoming more digitized.

With wider internet access, the market gap between the supply and demand side of the creator economy narrows. Wireless infrastructure and last mile internet reach are surely giving an economic boost to localized content to reach a global audience. In the next few years, we will likely see high volume growth in the creator economy.

“Number of creators on the 50 most popular creator platforms stands at 668,000.”

Disruption in formal employment opportunities

Ever since the pandemic outbreak, there have been massive job losses and an increase in countless job-seekers. Fresh graduates had to sit idle at home. Some of them jobless and creative artists became overnight sensations. In 2021 itself, the 50 million creator economy escalated to $14 billion. Creators now look for additional revenue sources and flexible job culture empowered by remote work technologies.

Many small businesses collaborate with influencers and online creators to boost brand visibility and attention. By leveraging these influencers’ voices and reach, many could ensure business continuity and increase their sales. In fact, boosting the creator economy is the dire need to compensate for the lack of formal job opportunities.

• YouTube is considered the birthplace of the creator economy, and a report outlined its contribution to the YouTube Partner Program (YPP).
• Oxford Research found that YouTube’s creative ecosystem supported 394K equivalent jobs in the United States in 2020, paying over $30 billion to creators, artists, and media companies.

The popularity of short-form video content

Video is now the most popular form of content on the internet, and people are continuously looking for new and interesting videos to watch. People love short-form video content as it is easy to consume and can be watched on any device. People watch short-form videos while on the go and are also more likely to share them with their friends. You can learn or get a good laugh within minutes by watching reels or short videos.

“53% of content creators’ fans say that their ideal length for a video is under 5 minutes.”

• According to a HubSpot report, 85% of marketers consider short videos as the most effective video format on social media.  In 2022, brands will focus more on short-form educational videos focused on how-to’s, DIYs, and explainer videos.
• People are increasingly turning to short online videos for entertainment, news, and even education. More and more students and teachers are using short-form educational videos to supplement traditional classroom instruction.

An increasing number of creator economy platforms and tools

A lot of content creators look for different ways to monetize their work. Now there are many monetization platforms helping creators earn a decent income from their work.

• One of the most popular monetization platforms is YouTube. You can create videos and then monetize them through ads. You can even join the YouTube Partner Program, which gives you a share of the revenue from the ads shown on your videos.
• Educators now possess multiple no-code and easy solutions like LMS to create, integrate and monetize their educational content.
• Video security mechanisms like DRM, which used to be available only for Google and Apple, are now available to everyone through Authorized license partners like VdoCipher. Earlier the creators had no option to tackle their video piracy problem and eventually had to face revenue loss.
• Another popular monetization platform is Patreon. With Patreon, you can create content and ask your fans to support you by becoming patrons. It may be a good earning source if you have a large audience base.
• Several platforms also specialize in selling digital products, such as ebooks, courses, and other types of content. These platforms can be a great way to monetize your work if you have something of value to sell. Find the right platform for your content, experiment with free templates, and see what works best for your specific situation.

“Nearly 41% of creators make a liveable wage from their content at $50k in annual income or higher.”

Many creators are moving beyond popular earning models like sponsorships and Patreon towards new and innovative monetization methods. Be it NFTs or workshops or developing own brand into a full-scale business. Not all models seem to prove successful, but some certainly will.

Bond of trust between Creators and Audience

Creators have become the key players for brands to reach targeted audiences. Many creators build their audience on social media by promoting their knowledge and talents. Their admiration or reputation roots in their creativity and unique individuality. Multinational companies engage with the mass audience with unique campaigns involving famous creators instead of big celebrities. Creators now have the power to connect with unrepresented groups and nations, which is a big opportunity for creators and companies.

Communicating with creators can take many forms, including leaving comments, sending messages, or following their social media handles. When fans take the time to communicate with creators, it shows that they are invested in what they are doing and that they are willing to support them. This can go a long way in building trust between fans and creators.

In some cases, the close relationship and bond of trust between fans and creators allow for the wrong transmission of inaccurate and misleading information. Some creators even take undue advantage of the trust fans put in their favourite creators. There have been plenty of examples of content creators propagating wrong and conspiracy theories. 

“44% of fans feel they know their favourite creators, as well as they know their real-world friends.”

Investment in creative content

Investing in high-quality creative content is wise for businesses of all sizes regardless of whether your business is about SEO link building software or eCommerce. After all, compelling content is one of the most effective ways to reach and engage your target audience. It helps build trust and credibility, drive your website or business traffic, and generate leads and sales. Creators and businesses (especially after announcing ChatGPT), sometimes rely on AI content tools. Our advice will be to use also AI Detector tools to ensure that your content looks human-like and will be perceived positively by your audience. It’s also possible to create captivating AI art effortlessly with the use of AI art generator tools, but you may still need a graphic artist to develop brand-ready images. Since 2020, venture capital has invested $850 million into the creator economy.

The growing number of unicorns in the creator economy shows the huge potential for venture capital investors, startup founders, and creators. This type of investment into the creator space sends a strong message that the creator economy is a big force to be reckoned with. According to Crunchbase data, funding for startups focused on creative content in 2021 was $939 million.

“The actual rate an advertiser pays per view on YouTube is between $0.003 to $0.005, which means a YouTuber receives nearly $3 to $5 per 1000 views”

Creators are doing what they like to do and are best at what they do while delegating out the things they are not good at. There is a need for other tools to help creators run their work, such as hosting videos, managing revenue, contacting brands and businesses, hiring resources and more.

• LinkedIn announced a $25 million fund via its Creator Accelerator program
• Pinterest built monetization tools and launched a $500,000 creator fund
• YouTube added a $100 million fund just for Shorts, its TikTok-like feature
• In 2020, TikTok, after a $200 million fund, launched new monetization features     

                                             Creator Economy Ecosystem

The Benefits of working with Creators

Enhanced Return on Investment

Among marketers who implement influencer marketing strategies, approximately 25% report it as having the second-highest return on investment (ROI) compared to other marketing approaches. In the B2B sector, influencer marketing is particularly potent, yielding an ROI that is eleven times greater than that of traditional advertising methods. This strategy is especially effective in influencing Generation Z consumers, with one-third reporting purchases based on influencer endorsements within a recent three-month period.

Expanded Reach and Brand Awareness

As organic reach diminishes on social media platforms—which promote a pay-to-play model—the importance of influencer collaborations becomes increasingly crucial. For example, by July 2022, the average organic reach for Instagram posts by brands had fallen to 13.51%, a decrease of 29% from the previous year. Similarly, Facebook’s post reach reduced from 10.43% to 8.6%. Influencers can significantly extend a brand’s reach by tapping into their established communities.

Innovations in Search and Discovery

Modern consumers frequently prefer social media platforms over traditional search engines for finding information. Surveys by Google indicate that 40% of younger users favor platforms like TikTok and Instagram for searches, attributable to the personalized and relevant content these platforms offer through sophisticated algorithms. Thus, collaborating with content creators is becoming essential for enhancing a brand’s search engine optimization (SEO) and visibility.

Authenticity and Trust

Utilizing user-generated content (UGC) from creators helps B2B companies enhance their brand’s authenticity and foster trust among potential clients. Moreover, UGC allows brands to diversify their content sources, which is particularly beneficial for organizations with limited marketing and creative resources.

Strategic Data Capture

Engaging with new communities via influencers enables brands to access a rich source of audience data. As regulations make acquiring third-party data increasingly challenging, the information gathered directly from interactions on creators’ platforms—such as post feedback, comment tags, and user engagement metrics—becomes invaluable. This data can inform future marketing strategies and help refine target audience profiles.

eLearning Creator economy

In the last two years after the pandemic, there’s been a growing trend of people making a living off by creating and selling eLearning courses. This is often referred to as the “elearning creator economy.” There has been a growing demand for online learning platforms, which makes it easy for educational creators to sell and monetize their content. More people now look for affordable and non-traditional ways to learn new skills online. They can study at their own pace and in their own time. They can also access learning materials from anywhere in the world. Year over year, creators are succeeding in generating revenue through online education.

Top creators are broadening their revenue streams, moving from online courses to selling other products and services. Around 83% of the top educational creators already offer multiple services and products. Instead of a single course, creators provide a complete learning package for students, including memberships, interactive sessions, ebooks, physical products, and other complimentary services. Creators use live and scheduled lessons to build a sense of community among students. These small interactions, in turn, build engagement with each other. The end purpose is to create a learning environment to achieve success.

OTT Creator Economy

Most YouTube creators look for different ways to monetize their content. Even when their channel has built a fan following, there is a constant fight to retain the audience. To achieve a sustainable income, creators must navigate their followers from the platform their audience is built on to a place with diversified monetization options. Many creators have perfected the transition to subtly divert a loyal audience towards more financially supported content creation platforms. An OTT platform matches the portfolio of these creators and offers a valuable extension to their earning mediums. 

“By 2026, media OTT revenue is expected to surpass $200 billion”

OTT platforms have proven to be a boon for content creators. The OTT space is where talent is respected and rewarded, irrespective of who you are or where you come from. OTT platforms offer a more direct path to audiences than traditional television or movie platforms. This means that creators can build a more direct relationship with their fans and can more easily connect with viewers who are interested in their work.  OTT gives content creators a more stable revenue source and chances to reach a larger audience.

Creator Economy Market Size & Statistics

• By 2022, the global digital video content market is expected to reach $204 billion USD
• The total investments in creator economy startups was $1.7 billion in Q2, 2021
• 12% of full-time creators earn more than $50K 
• 9% niche creators earn more than $100K in a year
• 68% creators consider themselves part-time creators
• Short-form video is the most engaging content on Instagram
• Online learning market expected to surpass $305 billion by 2025
• 17% of consumers subscribe to a creator’s membership website
• 67% consumers learned about a new product through creator videos
• YouTube paid creators more than $15 billion throughout 2021
• During the pandemic, ad-revenue for creators declined by 31%
• Over 21K YouTube creators have more than 1 million subscribers
• 425% increase in enrollments to online learning courses 
• Twitch has over 300K professional streamers

Why do Creators need secure video hosting and video protection?

Video hosting platforms allow users to upload, share, or view videos. Popular video hosting platforms include YouTube and Dailymotion. There are several reasons why video content creators need secure video hosting. One reason is that secure video hosting helps ensure the confidentiality of sensitive information from being accessed by unauthorized individuals. Additionally, secure videos protect learners’ privacy by protecting their personal information from sharing with third-party organizations.

“As per Digital TV Research, by 2022, the total loss from stream piracy will reach $52 billion”

To discourage video piracy and protect your videos from unauthorized access and usage, creators need a secure video hosting platform with additional security and features. The moment someone has access to their premium content, the very next minutes, the content is freely available on the web. Everyone must keep their videos secure, whether they’re vloggers, gamers, individual creators, Ed-tech or media enterprises.

VdoCipher’s Hollywood Grade Video DRM encryption allows you to protect a wide range of video file formats. The videos streamed via VdoCipher cannot be downloaded by any internet plugin or software. DRM technology uses encryption to protect content from unauthorized copying and playback. The user needs a valid DRM license to play the video content with access on only authorized devices. Only people with the appropriate key can decrypt and access the video.

DRM Encrypted Streaming

DRM encrypted streaming uses digital rights management technology to prevent unauthorized copying and playback of digital video content. DRM-protected content is typically streamed over the internet from a content provider to a user’s computer or other devices. The user’s device decrypted the video using a DRM key that the content provider provides. The user’s device then plays the content using a DRM-compliant media player. We offer the highest security from video piracy using Google Widevine and Apple FairPlay DRM.

Dynamic watermarking

Watermarking your videos is yet another great way to protect your videos from being duplicated and let others know who the original owner or creator is. Content creators can add watermarks to their videos to give the branding and restrict others from claiming it as their own. Our dynamic watermark features let you add User name, User IP, and User email to the video. The watermark can be easily customized for movement, colour, size, and transparency.

Smart HTML5 Video Player

Our smart HTML5 video player comes with dynamic controls, Multi-Language Subtitles support, adaptive bitrate streaming, and more.  In the Adaptive Multi-bitrate Playback, the media player automatically adjusts the quality of the video stream according to the bandwidth availability. It ensures smooth video playback without any buffering or interruptions. You can easily embed using iFrame, plugins and API.

Easy to integrate Plugins For WordPress/LMS and other CMS

VdoCipher provides easy integration support for many platforms like WordPress, Moodle, Joomla and many others. These plugin let you easy embed your videos and even place customization as per your requirements. For more advanced usage APIs and SDKs are also available.

Content Creators and Social Media Platforms

The relationship between creators and social platforms is simple. The platforms offer the creators a space to reach a broader audience, and in turn, creators supply almost free content for users to engage. This engagement drives the monetization options (advertising) on the platform. Creators use the platform to build fandoms and monetize on the platform. Content creators get a share of the ad revenue, which is nearly 5% of the overall generated revenue on the platform.

In short, social media provides creators with both top-of-funnel and middle-of-the-funnel marketing reach. Creators can choose to publish general content creating awareness about a broad topic. Also, they can target a niche audience by creating content only for that niche. In general, what we see is a combination of both generic and niche content combined with the final product knowledge using the text description in captions, bio, etc.

Tagging a product, retargeting, and other such platform-dependent features have now evolved into social media. Creators and companies that used to publish on social media to create awareness are now directly targeting it for sales. Also, these features are expected to become ubiquitous and enhanced, leading to more sales and commissions.

Types of content produced by creators

Popular Content Produced by Creators
Writing	Video & Audio	Social Media
Blogs	Vlogs	Testimonials
White Papers	User-Generated Content	Infographics
eBooks & Guides	Live Streams	Contests
Email Newsletter	Reels	Announcements
Product Content	Tutorials & courses	Social Posts
Case Studies	Interviews	Reviews

Common Revenue Models for Content Creators

Membership

In the membership program, the creators offer exclusive perks and benefits upon joining. The common benefits members receive include

• Exclusive Content (member-only articles, podcast episodes, newsletters, etc.)
• Member-Only Events (in-person or online events, meetups, both online and offline)
• Contents and Challenges
• Coupons and discounts

Subscriptions

A subscription is a recurring payment customers pay to access a service, content or product. The subscription pricing model can be either Flat-rate, Tiered or usage-based.

• Flat-Rate Subscription – A fixed subscription fee billed weekly, monthly or annually
• Tiered Subscription – Subscribers choose a subscription pricing model based on features and additional benefits they wish to avail of. There are usually basic and premium subscriptions.

Earlier this year, Instagram introduced “Subscriptions” with a handful of creators to set a monthly subscription price and give benefits to their subscribers. The features include Subscriber Lives, Badges, Stories and more.

Selling Merchandise

Creators and businesses may choose to sell their products and exclusive merchandise to their fans and followers through social media, websites or other mediums. About 43% of consumers are likely to make a purchase after knowing about it on social media. With these kinds of stats, creators cannot miss-selling their merchandise then and there. Many social sites even include product search features, wishlists and make a purchase.

Brand Sponsorship

In a brand sponsorship campaign, businesses and brands partner with creators to promote their products, services or content. The creators distribute and promote the sponsored content on various social platforms like YouTube, TikTok, Instagram and more. Even micro (<25K followers) and nano influencers (<10K followers) contribute a large part of brand sponsorships.

Donations

Nowadays, several creators earn money through donations from fans and supporters. It is usually done through websites like Patreon, where fans sign up and donate a specific amount to their favourite creators each month. Many social media platforms and websites have donation buttons. Moreover, different organisations can also get nonprofit donations thanks to technology and online platforms available.Sometimes creators hold crowdfunding campaigns to raise money for their work or project.

Google Adsense and other ad networks

Ad revenue sharing is the most common way creators earn. Ad revenue sharing is when a creator agrees to allow an ad network to place ads on their content in exchange for a share of the revenue generated from those ads.

Google AdSense is the most popular way creators earn money from their online content. AdSense works by displaying relevant ads on your site based on your content and visitors. To promote products and services, advertisers create and pay for ads. These advertisers pay different prices for different ads. Based on ad clicks and impressions, Google pays a share of revenue with the publishers.

“For displaying ads with AdSense for content, publishers earn 68% of the ad revenue while for AdSense for search, the revenue share is 51%”

The other ad monetization methods are cost-per-click (CPC) and cost-per-impression (CPM) advertising. In CPC advertising, the creators are paid based on the number of times users click on their content and the amount earned depends on the ad network. On the other hand, in CPM advertisements, creators earn based on the number of times their content is viewed. 

Endorse or sell NFTs

NFTs are non-fungible tokens. They are unique digital assets that cannot be interchanged with other assets of the same type. NFTs are bought and sold online, commonly with cryptocurrency, and are generally encoded with the same underlying software as many cryptos. NFTs can be anything, from video clips, GIFs, and digital paintings to music like some paintings sold in auctions in previous decades.

Some NFT marketplaces pay creators a percentage every time their NFT is sold. By buying NFTs, supporters and fans can financially support their favourite creators. Earlier this year, Jack Dorsey sold his first tweet for $2.9 Million.

Selling digital products

Creators can sell digital products like courses, webinars, video games, and digital downloads. They can sell these through online marketplaces like Etsy, Podia, their own website, or social media platforms.

Challenges and Criticisms of the Creator Economy

Market Saturation and Competitiveness

As the creator economy continues to grow, it faces challenges related to market saturation and increased competitiveness. With millions of creators producing content across various platforms, standing out and gaining traction becomes more difficult. This heightened competition can lead to oversaturation in certain niches and make it harder for new creators to establish themselves. While this challenge reflects the vibrant and dynamic nature of the creator economy, it also raises questions about sustainability and the need for differentiation.

Criticisms Regarding Inclusivity and Accessibility

The creator economy has also faced criticisms concerning inclusivity and accessibility. While the internet has democratized content creation to some extent, disparities still exist. Not all creators have equal access to tools, resources, and opportunities. Barriers related to technology, education, and capital can hinder participation for some individuals. Moreover, algorithms and platform policies may inadvertently favor certain types of content or creators. Addressing these issues is crucial for ensuring that the creator economy remains an inclusive and equitable space for all.

Future of the Creator Economy

The creator economy seems to only grow in the future. With increasing monetization platforms and access to tools, creators can make a living off of their content. And as more people become creators, the economy will only grow.

In the future, we may see new monetization mediums and even creators with their own platforms. This will lead to more and more brands and companies partnering with creators to promote their products and services. The future of the creator economy looks promising and full of opportunity.

Creators who can adapt and evolve will be able to thrive in this ever-changing landscape. In the coming times, creators must come up with fresh, engaging and interesting ideas.

• Community-based platforms will grow
• Influencer marketing will become more important
• Demand for content creation tools will increase
• Creator-led brands will gain popularity
• NFTs are likely to play a key role in the creator economy
• Web3 technologies will open new avenues for content creation

Latest in the Content Creator Economy

The Creator Economy, once enveloped in widespread enthusiasm, is now facing the harsh realities of an economic downturn. This sector, defined by its digital content creators ranging from bloggers and YouTubers to podcasters and social media influencers, is reportedly struggling as investments wane and economic conditions worsen.
Investor interest is declining, with the valuation of new startups falling significantly from previous highs. For instance, the era of startups achieving $1.3 billion valuations merely for their potential seems to be over. Additionally, the infrastructure supporting these creators, heavily reliant on venture capital, is also at risk as funding dries up.

Challenges Faced by the Creator Economy

• Economic downturns and reduced investment levels are pressuring all sectors, but the Creator Economy feels it acutely due to its reliance on discretionary spending. As consumers tighten their belts, spending on subscriptions and sponsored content can decline, which directly affects creator revenues.
• Market saturation is another significant challenge. With low barriers to entry, new creators are constantly emerging, making it increasingly difficult to capture and retain audience attention.
• The reliance on algorithmic platforms means that changes in platform algorithms can dramatically alter a creator’s visibility and revenue overnight, which adds an element of unpredictability to their earnings.

The Myth of a Non-existent Middle Class

A critical issue highlighted is the absence of a well-defined middle class within the creator community. The viability of content creation remains feasible primarily for the top-tier creators, leaving those in the middle struggling to find their footing. This disparity is emphasized by the example of the “37th best finance creator,” who, despite being highly ranked, faces significant challenges in standing out and securing a sustainable income.

• The notion that only the top creators make a viable living overlooks the experiences of thousands of mid-tier creators who carve out comfortable niches. These creators often benefit from highly engaged, though smaller, audience bases that can offer more sustainable and predictable income streams through direct support mechanisms like Patreon and memberships.
• Diversification strategies are critical here; successful mid-tier creators often spread their presence across multiple platforms and revenue streams, reducing their vulnerability to changes in any single channel.
• Community building is also a vital strategy for these creators. By fostering a strong sense of community, mid-tier creators can enhance audience loyalty and increase the willingness of followers to support them financially.

Challenging the Negative Outlook

Critics of the creator economy, like Kantrowitz, cite shrinking advertising markets and a faltering middle class as signs of decline. However, this narrative is challenged by data indicating that the advertising sector, while slowing, is still growing. Moreover, platforms like YouTube continue to see robust payouts, with significant sums being paid to creators annually.

• While some focus on the contraction of advertising budgets, they fail to account for the rise of alternative monetization strategies that creators are increasingly tapping into. These include direct sales, e-learning courses, and premium content models, which can be more resilient to economic downturns.
• It is also essential to recognize the resilience of niche markets within the Creator Economy. Certain niches continue to experience growth despite broader economic challenges, driven by specific audience needs and evolving content trends.
• The expansion of global internet access is continually opening new markets where creators can find fresh audiences and untapped opportunities for monetization.

Analyzing the Investment Trends

• While the overall venture funding landscape has seen a retreat, this needs to be viewed in context. Not all sectors are experiencing this equally, and within the Creator Economy, areas like educational technology and digital marketplaces are still attracting significant interest.
  The decline in some high-profile investments should not overshadow the continued investment in foundational technologies such as streaming infrastructure, content management systems, and creator-focused fintech solutions.
• Historical cycles suggest that investment in innovation does not cease but rather shifts towards supporting sustainable growth and profitability in response to economic pressures.

Sustainability of the Creator Economy Infrastructure

• The robustness of the Creator Economy’s infrastructure is often underappreciated. Platforms like Stripe and WordPress not only continue to operate but actively expand their services to better meet creator needs, such as integrating more advanced payment and monetization options.
• New developments in content delivery technology, including augmented reality and virtual reality, promise to open up novel content interaction modes that could rejuvenate interest and engagement among audiences.
• Furthermore, the success of platforms such as Patreon and Twitch showcases the viability of models centered around direct audience support, which lessens reliance on traditional advertising and enhances sustainability.

FAQs

Name of some of the famous creator economy startups.

Beacons, Buy me a Coffee, and Patreon are some of the creator economy startup examples.

What are some of the editing creator tools for YouTubers?

The most common tools used for editing are iMovie, Final Cut Pro and Adobe Premiere Rush.

Why do creator videos require DRM encryption?

Video creators need DRM encryption to protect their content from online video piracy. DRM encryption ensures that only authorized users access and view the content and that unauthorized users cannot copy or distribute the content. It secures the video against unauthorized access and copyright infringement. When the video is properly secured from hackers, there is boost in generated revenue.

What are the challenges of the creator economy?

The creator economy challenges include the need for creators to constantly create unique content to hold the audience and more platforms to support a wide range of content types with monetization methods that work for both creators and platforms. To have uniformity across the sector, there needs to be standard and well-established practices.

Which is the biggest platform for creators?

According to Statista, Instagram has the most creators ( more than 30 million), followed by YouTube with over 12 million creators.

How many creators earn more than $1 million?

Roughly 0.5% of creators make over  $1 million annually, while those earning between $500K-1M are nearly 1.7% of the creator economy.

References:

• https://influencermarketinghub.com/state-of-the-creator-economy/
• https://linktr.ee/creator-report/
• https://www.springboard.com/blog/business-and-marketing/creator-economy/
• https://stripe.com/blog/creator-economy
• https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2021/08/30/the-continuous-growth-and-future-of-the-creator-economy/
• https://www.thinkific.com/wp-content/uploads/2022/04/online-learning-trends.pdf

Jyoti

Jyoti began her career as a software engineer in HCL with UNHCR as a client. She started evolving her technical and documentation writing skills to become a full-time Content Marketer at VdoCipher.

The post Content Creator Economy Growth & Growth Creator Statistics Report appeared first on VdoCipher Blog.

Brief History of Digital Piracy

• Digital piracy began with Peer-to-Peer (P2P) music sharing, evolving with the internet from the outset. Early forms of online piracy were primarily conducted through P2P networks where individuals could share music files​.
• The principle of piracy predates the internet, but digital piracy specifically refers to unauthorized downloading and distribution of copyrighted digital works like music, movies, or software​.
• Piracy’s digital form threatens economies much like Atlantic pirates threatened early 18th-century economies, underscoring piracy’s enduring nature despite evolving mediums​.

Financial Implications of Unsecured Content

• Digital piracy significantly impacts the U.S economy with annual losses nearing $30 billion due to pirated videos alone. The movie and television sector, despite generating around $230 billion in revenue in 2017, is hit hard by piracy.
• On a global scale, the movie industry faces annual revenue losses between $40 and $97.1 billion due to digital piracy. Illegal downloading of copyrighted materials consumes about 24% of global bandwidth.
• The financial losses extend to other content niches like ebooks, with American ebook publishers incurring over $300 million in losses due to digital piracy, a menace that also affects the films, music, and TV industries significantly.

This makes OTT content protection by employing Multi-DRM and dynamic watermarking among other methods crucial for content creators aiming to secure their content against piracy and unauthorized distribution. These protective measures include encryption, watermarking, and access control, with DRM solutions restricting how the content can be used, accessed, and distributed, thereby maintaining the integrity and value of the content.

OTT DRM Basic Concepts and Terminologies

Encryption

Encryption is a process that transforms readable data into an unreadable format to prevent unauthorized access. In the OTT DRM context, the digital content is encoded and encrypted using a cryptographic key immediately after uploading. The encryption helps to protect the content in transit between the platform server and the client side. Depending on the platform, encryption can be done before or after streaming. Two primary modes of AES used for video content encryption are CTR and CBC, differing in the encryption process and how the keys are used. The complexity of AES encryption necessitates a balance between encryption time/effort and security, especially for live video, which is a real-time application with increasing data quantities as we move towards HD, 4K, and HDR content qualities​.

Keys

In DRM, the encryption key is a “private key” that needs to be securely stored in a database accessible to a license server. The KeyID is a “public key” that can be given to anyone. When someone with the public key requests the license server for the private key (decryption key), it’s the DRM provider’s responsibility to authenticate the person before supplying or denying the decryption key​​.

The DRM workflow can be viewed in two parts: encryption of content in the packager and decryption of content in the client. The packager requests an encryption key from the DRM system, encrypts the content using the encryption key, and re-packages it. The client, upon receiving the content, requests the decryption key from the DRM system to decrypt and play the content​.

Licensing

A License Server in DRM holds the information required to securely encrypt and decrypt media. It has two primary roles: associating a license key with the media after packaging and encrypting it, and authenticating the request from the player for license and encryption keys during playback. The License Server fetches the decryption key from the key store (database) and responds to the player with the license and decryption keys​​.

Licensing servers implement fine-granular policies and rules to control how content is consumed. They can support various DRM policies and, in most DRM systems, licensing servers can be integrated with commercial DRM systems and their APIs​.

Packaging

Packaging refers to chunking or breaking up a movie into small pieces and describing the location and playback order of these chunks in a text file called a manifest or playlist. This playlist is essential for the video player to download the correct segments at the correct time, making packaging vital for Adaptive Bitrate (ABR) video streaming.

Popular OTT DRM Systems and their Features

OTT platforms typically rely on established DRM systems. Here’s a look at some major players:

OTT DRM Implementation Challenges

Implementing DRM is not without its hurdles:

• Encryption and Packaging:
  • Encrypting content in multiple formats upon ingestion.
  • Utilizing different encryption methods and packaging for various devices to ensure compatibility.
  • Adaptive bitrate (ABR) leads to multiple file segments, increasing complexity and storage costs.
• Scaling Challenges:
  • Encoding multiple file sets at scale, leveraging cloud scalability to manage encoding operations in parallel.
  • Overcoming storage and processing requirements associated with encryption, encoding, and packaging.
• User Experience:
  • Ensuring consistent user experiences across devices with delay-free acquisition of keys from DRM servers.
  • Addressing challenges with ever-changing client devices, operating system variations, and associated SDKs such as React Native SDK, Android SDK, Flutter SDKs and more.
• Key Management:
  • Developing a key management solution to ensure content protection throughout the workflow.
  • Setting up license servers and managing security policies for playback conditions.
  • Handling all aspects of key management and licensing to safeguard keys across the workflow, including implementing standards like Secure Packager and Encoder Key Exchange (SPEKE) for secure key transmission.
• Advancement and Integration:
  • Transition towards Common Media Application Format (CMAF) to facilitate a single DRM-enabled file set for broad device compatibility.
  • Challenges with player integration, especially around server-side ad insertion (SSAI) due to varying encryption keys.
• License URL Simplification:
  • Simplifying license URLs for specific players by embedding license server URLs in the manifest and encoding session-specific data into the Protection Scheme Specific Header (PSSH).

OTT DRM working key points

1. Content Encryption: Initially, the digital content needs to be encrypted to protect it from unauthorized access. Encryption can occur either during the encoding and packaging process or dynamically, just-in-time (JIT), the latter offering benefits like added security with key rotation and bandwidth savings​.
2. Rights Packaging: This step involves defining the rights or permissions associated with the content, which may include access controls, expiration terms, and other usage restrictions.
3. License Server Interaction: The DRM system interacts with a license server to manage digital rights and licenses, ensuring only authorized users can access the content.
4. Client-side License Acquisition: On the client-side, a license request is made to access the content. This request is sent to the license server, which then validates the request and issues a license if the request is valid.
5. Content Decryption: Once the license is acquired, the client-side DRM system decrypts the content for playback, ensuring it remains protected from unauthorized use.
6. Playback: The decrypted content is then played back on the user’s device through the requesting player.

VdoCipher – Hassle free DRM integration with your OTT Platform

To implement DRM solutions like VdoCipher on an OTT platform, various components and features need to be integrated for a seamless and secure video streaming experience. Here are some of the OTT components and the corresponding features provided by VdoCipher:

1. Multi-device Player: VdoCipher provides a multi-device HTML5 player for desktops and SDKs for iOS and Android, facilitating a seamless user experience across various devices​1​.
2. Analytics: Detailed analytics are offered to provide insights into user engagement and video performance, which can help in improving user experience and optimizing content delivery​1​.
3. Custom Video Player & Cloud Hosting: VdoCipher provides custom video player solutions, packaged cloud hosting, and a video dashboard for easy video management, ensuring security with ease of integration for businesses​2​.
4. Backend Integration: The backend system is responsible for making API calls, with the app SDK requiring an OTP (One-Time Password) for playback. An API endpoint should be created as part of the app backend to manage authenticated HTTP requests for playing a video and responding with an OTP, facilitating the interaction between the VdoCipher API and the OTT platform​3​.
5. Content Management System (CMS): Whether you are working with CMS like WordPress or any LMS of your choice, VdoCipher’s suite of plugins and features are designed to integrate with existing OTT platform components.

FAQs

Does Netflix use encryption?

Netflix uses a Multi-DRM sysytem capable of protecting its premium videos on range of devices and browsers like Apple, Chrome, Android & iOS. A multi-DRM system combines DRM systems from devices and broswer ecosystem giants like Apple and Google.

Which DRM is better for OTT platforms, Apple or Google?

A combination of both Apple FairPlay and Google Widevine DRM is leveraged by major OTT platforms like YouTube, Netflix, Prime Video, Disney+, Paramount+, Hulu, and more.

Difference between Standard encryption Vs. DRM encryption for OTT?

A standard video encryption like HLS E, RTMP E, and AES 128, carry key exchange mechanisms that are very prone to hacking and downloading. On the other side, DRM encryption hides the encryption key by hardware and black box based control, preventing easy access to a hacking software.

References

• [DRM support: Platform comparison – link]
• [History of the Internet – Wikipedia – link]
• [Online piracy – Wikipedia – link]
• [Piracy Is Back: Piracy Statistics for 2023 – link]
• [Protect OTT Content with DRM – link]

Vishal Sharma

My expertise focuses on DRM encryption, CDN technologies, and streamlining marketing campaigns to drive engagement and growth. At VdoCipher, I’ve significantly enhanced digital experiences and contributed to in-depth technical discussions in the eLearning, Media, and Security sectors, showcasing a commitment to innovation and excellence in the digital landscape.

The post Understanding OTT DRM for hassle free Implementations appeared first on VdoCipher Blog.

VOD OTT Difference

OTT or over-the-top is partly a subset of VOD. If you consider a Venn diagram to understand the difference, then it overlaps with VOD when the streaming is limited to internet-based. But when it comes to live streaming, it is not VOD and is only covered under OTT.

Now, What is VOD?

Video-on-demand or VOD is a video delivery mechanism that delivers video content, such as educational videos, movies, and TV shows, directly to customers for immediate viewing. VOD can stream through Cable, satellite, or Internet. Only the internet part comes under OTT, this means Netflix is a VOD as well as an OTT. Cable-operated VOD examples include Xfinity, Hathway, etc. and Satellite based VOD examples include Dish Network, Directv, Verizon Fios, Comcast, Cox, Time Warner Cable, Charter Spectrum, Broadstripe, etc. Also, pre-recorded videos distributed over private network settings for training, communication, and customer services, also come under the VOD head.

OTT on the other hand transmits data over the internet. It doesn’t require users to subscribe to a traditional cable or satellite pay-TV service but you may need to subscribe to the internet service and also for paid content. OTT also includes live streaming and scheduled media programs getting distributed over the internet.

Remember, If the content is via satellite or cable and you cannot watch it whenever you want, it is neither a VOD nor OTT.

VOD Workflow Fundamentals

A Comprehensive VOD Workflow includes:

Content Acquisition:

• Source video content from creators or licensed sources.
• Ensure content is in a format suitable for processing and distribution.

Storage:

• Use robust storage solutions, considering redundancy and backup for safety.
• For internet-based streaming, cloud solutions like S3 buckets can be considered. For cable and satellite, dedicated data centers or storage facilities are used.

Content Transcoding:

• Convert source video into multiple formats and resolutions to cater to different devices and bandwidths.
• Use dedicated transcoding solutions. For internet-based platforms, services like AWS Elemental MediaConvert can be considered.

Content Delivery:

• Internet Streaming: Utilize Content Delivery Networks (CDN) to ensure fast and reliable content delivery to end-users.
• Cable and Satellite Streaming: Use dedicated broadcast equipment to send signals to set-top boxes or satellite dishes of subscribers.

Playback and User Experience:

• Provide adaptive streaming to ensure optimal video quality based on user bandwidth.
• Offer features like pause, rewind, and fast forward for enhanced user control. Also features like multi-language subtitles, chapters, player color, etc must be used wisely to enhance user experience.
• For cable and satellite streaming, consider using proprietary hardware-based players customized for your brand.

User Access and Management:

• Implement authentication and authorization mechanisms to ensure that only subscribed users can access the content.
• Consider solutions like Amazon Cognito for internet-based platforms. For cable and satellite, proprietary access control systems are used.

Metadata Management:

• Store video metadata in robust databases. For internet-based solutions, databases like AWS DynamoDB can be considered.
• Metadata enhances searchability and user experience.

Security:

• Ensure DRM encrypted transmission of content which encrypts the content and also handles the key exchange securely.
• Implement secure access controls to prevent unauthorized access.
• Cable and satellite-based VOD providers need to integrate DRM with the hardware through proprietary ICs and processing hardware.

OTT Workflow Fundamentals

A Comprehensive OTT Workflow includes:

Content Acquisition:

• Source original content or acquire licenses for third-party content.
• Ensure content adheres to regional regulations and licensing agreements.

Storage:

• Store content in scalable and secure storage solutions.
• Cloud storage solutions, such as S3 buckets, are commonly used due to their scalability and global reach.

Transcoding and Packaging:

• Convert content into multiple formats suitable for various devices.
• Package content for adaptive bitrate streaming to ensure optimal quality based on user bandwidth.
• Consider using technologies such as CMAF for multi-format usage.

Content Protection:

• Implement Digital Rights Management (DRM) solutions to prevent unauthorized access and piracy.
• Different devices might require different DRM solutions.

Content Delivery:

• Use Content Delivery Networks (CDN) to distribute content globally, ensuring low latency and high availability.

User Access and Authentication:

Implement robust user registration and authentication systems.

Analytics and Personalization:

• Video analytics can be used to analyze the user experience as well as to protect your content against unauthorized usage and password sharing.
• Offer personalized content recommendations based on user behavior and preferences.
• Monitor user behavior, content popularity, and streaming quality.
• Use analytics to drive business decisions.

Monetization:

• Implement chosen monetization models, whether subscription-based, advertisement-driven, or pay-per-view which are also called SVOD, TVOD, and AVOD.
• Ensure seamless payment gateways for subscription and pay-per-view models.

OTT Video Technology

In the realm of OTT, software-defined media supply chains have emerged as the linchpin, reshaping the broadcasting landscape. Here’s a deep dive into the technology underpinning OTT:

Software-Centric Infrastructure:

Legacy systems, being hardware-based, are infrastructure-centric and rigid. In contrast, OTT thrives on scalable, adaptable, web-centric platforms, achievable solely through software-based systems.

Packetization and Transport:

• OTT operates on the principle of packetization, segmenting data streams into manageable “chunks” for transport via HTTP.
• To counter challenges like latency and packet loss, OTT employs HTTP over TCP/IP.
• This protocol, with its acknowledgment mechanism, ensures packet delivery, retransmitting lost packets as necessary.

Content Delivery Mechanism:

• Traditional broadcasting pushes content, whereas OTT adopts a pull model. End devices request content, and OTT players retrieve and stitch together media chunks, creating a seamless stream.
• This pull model is facilitated by ubiquitous web browser protocols, with the receiver (or end device) controlling the transmission process.
• After Flash players became obsolete, HTML5 players can now handle smooth and secure delivery of video content with all advanced features.

Adaptability and Monetization:

• OTT platforms can host multiple content versions simultaneously. The player determines the optimal version, dynamically switching based on network performance.
• Monetization models include AVOD, SVOD, TVOD, and FAST. Personalized ad content can be interwoven with program chunks, thanks to the file-based nature of OTT.

Standards and Protocols:

• OTT leverages existing standards like MPEG2-TS for media carriage, various video compression schemes (e.g., MPEG-2, MPEG-4, HEVC), and audio formats (e.g., AAC, MP3).
• Unlike the rigid ISO broadcasting standards, the internet operates on RFC documents, with HTTP being foundational.

VOD Technology

Video-on-demand (VOD) technology has revolutionized the way audiences access content, offering flexibility across various platforms, including the Internet, cable, and satellite. It deploys the following technologies,

Multi-Platform Accessibility:

VOD isn’t exclusive to the internet. While web-based VOD platforms are prevalent, cable and satellite providers also offer extensive VOD libraries, allowing subscribers to select and watch content as they wish.

Content Storage and Retrieval:

Central to VOD is the content storage mechanism. High-capacity servers store vast content libraries, ready for retrieval upon user request. Efficient indexing ensures rapid content access and playback.

Streaming Protocols:

• For internet VOD, protocols like HTTP Live Streaming (HLS) and Dynamic Adaptive Streaming over HTTP (DASH) are employed. These adapt video quality in real-time based on network conditions.
• Cable and satellite VOD utilize different protocols, often proprietary to the service provider, ensuring smooth content delivery over their specific infrastructure.

User Interface and Navigation:

VOD platforms, regardless of delivery method, prioritize user experience. Intuitive interfaces, search functionalities, and content categorization facilitate easy content discovery and selection.

Monetization and Content Models:

• VOD services can be free, subscription-based (SVOD), advertising-supported (AVOD), or transactional (TVOD), where users pay for individual content pieces.
• Integration of targeted advertising is also prevalent, especially in AVOD models, enhancing revenue streams.

VOD OTT DRM

Given the on-demand nature of VODs and OTTs, content protection is paramount. Digital Rights Management (DRM) systems are employed through DRM solution providers like VdoCipher which partners with Apple and Google for using their DRM license.

​​DRM offers a systematic approach to copyrighted protection of media content, ensuring secure distribution, and playback of digital video assets. It goes beyond mere encryption by managing the encryption key and enforcing specific content consumption rules set by content owners. This comprehensive system restricts unauthorized access, ensuring that premium content remains exclusive to paying subscribers.

For an end-to-end DRM solution, two core processes are pivotal: content packaging and content consumption. In content packaging, once media is created, it’s encoded and encrypted using a key from the DRM. This encrypted content is then transferred to storage or a content delivery network (CDN). During content consumption, the user’s device requests the content, which is delivered encrypted from the CDN. The device then initiates a license request from the DRM system, which processes this request and sends back a license containing the decryption key and associated rights. Also, key exchange is protected by hardware-backed black boxes for storing the private key.

Prominent players in the DRM space include Widevine (utilized by Google Chrome, Firefox, and Android platforms), and FairPlay developed by Apple for its ecosystems like iOS devices, Apple TV, QuickTime, and Apple Music. These systems ensure compatibility across a myriad of devices, from browsers to smart TVs.

With the adoption of content protection technology like DRM, unification efforts have also increased which is making the system more protected. Earlier, screen capture protection used to be limited to Apple Fairplay DRM but is now available on many of Google’s devices and software.

Advantages of OTT Platform over traditional VOD

OTT platforms deliver content over the internet, making it accessible from any device with an internet connection, anywhere in the world. VOD, especially when tied to cable or satellite, has high infra and distribution costs are also restricted to specific geographic regions or devices. Similarly, to remain updated traditional VOD systems might require significant hardware upgrades. Let us look at the advantages of OTT over traditional VOD through the following criteria.

VdoCipher – Best VOD & OTT Video Solution Provider

We have learned in this article that VOD and OTT need to deploy many technical things to attain a complete workflow for their platform. The technology not only requires implementation but also expertise so that the whole system works in sync and does not become a bug-ridden structure. If we again want to list down, then these are the must-have features a VOD or OTT platform needs to have.

• Upload setup from desktop, Dropbox, Drive, Server, AWS, URL, FTP, and APIs to automate the upload process.
• High uptime cloud storage and processors
• Transcoding
• CDN
• Adaptive bitrates
• Custom video player
• DRM for video protection
• Dynamic watermarking to deter screen capture
• Video Analytics
• Plugins
• SDKs
• APIs
• Device compatibility for Desktop, Android, IOS, and IOS Native apps.
• Not limited to the above but also includes CMAF, Security analytics, easy integration, and much more.

All of the above are features that come with VdoCipher secure video hosting services. With good support and pocket-friendly pricing, it becomes a one and only choice as a video solution partner.

FAQs

What is an OTT Player?

An OTT (Over The Top) Player refers to the software application or embedded module that facilitates the playback of streaming audio, video, and other media content on OTT platforms via a web or app interface.

How do you get a custom player for your VOD & OTT platform?

VdoCipher provides a secure and customizable video player for OTT and VOD platforms. Once you’ve customized the player, you can easily embed it on your website or platform using the embed code for the web and app. The player is responsive and will adapt to various screen sizes, ensuring a seamless viewing experience for your audience. You can also integrate analytics to track viewer behavior and gather insights.

Vishal Sharma

My expertise focuses on DRM encryption, CDN technologies, and streamlining marketing campaigns to drive engagement and growth. At VdoCipher, I’ve significantly enhanced digital experiences and contributed to in-depth technical discussions in the eLearning, Media, and Security sectors, showcasing a commitment to innovation and excellence in the digital landscape.

The post VOD OTT Difference in Workflow Fundamentals and Technology appeared first on VdoCipher Blog.

‘According to Nielsen, OTT streaming accounts for 34.8 percent of total television consumption in the US, ahead of cable TV and broadcast.’

OTT is more appealing to viewers as it gives them the luxury of watching videos per their schedule. Additionally, they can skip paying a satellite or cable company to watch content that they may not be fully interested in. The availability of the internet and smartphones contributes to the increasing popularity of OTT content.

OTT has undoubtedly emerged as the medium to target a wide audience and generate revenue via various models. Now it is possible to build your own OTT app in your niche and see an increase in engagement and subscribers. One thing to remember is the secure upload of your video content, as you cannot risk videos getting leaked or pirated. To do so, businesses need a secure OTT video streaming solution provider like VdoCipher to manage your videos and protect them from online video piracy.

What is Over-the-top Media Service or OTT

OTT or ‘over-the-top’ media service refers to the delivery of media content to the viewers using the internet. OTT bypasses the traditional modes of media delivery via satellite or cable connections.

Over-the-top services are directly accessible via websites, apps, or browsers on mobile devices, personal computers, smart TVs, and digital media players, including gaming consoles. All you need is a high-speed internet connection and a connected device. Common examples are Netflix, Hulu, ESPN+, and Amazon Prime Video. Although cable services require a subscription, the OTT content is directly online streamed to the viewer and can be consumed at any time and anywhere in the world on various devices.

Over-the-top content is directly delivered to the viewers from a third-party OTT provider, with the ISP transporting IP packets. Some OTT platforms have a subscription model to access content priced monthly and annually. In contrast, some OTT services don’t charge a subscription fee but show advertisements.

“People are more demanding in how they want to consume their content, and what kind of content they want to have, and what they want to see on their home screen.” – Guillermo Martinez, Strategic Partner Development Manager for Android TV.

Importance and Benefits of OTT Platform

Cost Effective

Compared to traditional TV connections, subscribing to OTT platforms is more cost-effective. Additionally, you get access to foreign content and a huge HD and 4K content library. Also, there are no monthly fixed bills to be paid, and you can pay monthly or annually.

More personalized

The beauty of OTT platforms is how they tailor and recommend content as per the viewer’s interest, viewing history, and more. Viewers can surf the content they wish to watch, choose different genres, browse by languages, and much more. There is no fixed timing to watch your favorite content. You can, anytime, anywhere, watch at your convenience. All you need is an internet connection and a connected device.

Multiple ways to access OTT services

OTT video content can be viewed on multiple devices; some have user profiles for multiple users to watch the videos simultaneously. With just a login, you can watch the content on a smart TV, add-on devices like Chromecast Stick, smartphone, laptop, or tablet. The OTT platforms may be app-based or even accessible via a browser.

Download choice

Most OTT applications have the features of offline content download. You can easily download them for offline viewing, which is unavailable on cable television.

Variety of original content

In 2021, OTT giants Netflix and Amazon Prime invested nearly $500 million in original content in India. There is a vast library of content covering multiple genres and languages. A large collection of video content, shows, movies, and regional content is unavailable with a cable connection.

Best viewing experience

OTT offers the best video quality content experience across all devices based on your subscription. There is 4K content, and based on your internet connectivity, the video quality is automatically adjusted to match your bandwidth (Adaptive Bitrate Streaming). This way, video content is delivered uninterruptedly and seamlessly.

How OTT Solution Provider Works?

There are two sides to an OTT platform working; one is to store the video and audio files over the cloud, and the second is to deliver them for playback. A small or medium OTT provider is busier with content creation and marketing of that content to gain viewership. Also, in-house video storage and playback infrastructure is a capital-intensive project. To handle the capital-intensive start, cloud storage solutions like AWS come in handy. Still, upload, multi-format storage, encryption, CDN, and secure delivery are many such things that are extremely necessary. These challenges are why OTT video streaming solution providers like VdoCipher handle the end-to-end storage and delivery solution. They also provide APIs, SDKs, Player customization, and many other layers of security and features. When using an OTT solution provider, a basic workflow looks like this,

• The media broadcasters upload video content to a secure OTT solution provider platform like VdoCipher. At this stage, the media files get encrypted, transcoded, and stored in multiple formats for multi-quality playback and device support.
• The video content is cached on geographically located remote servers through Content Delivery Network (CDN)
• When the viewer makes a playback request, the video content is delivered via the CDN servers and gets finally decrypted with the DRM dynamic key exchange management system. The DRM protects your video from not only getting illegally downloaded but also prevents screen capture in some devices like Apple.
• Further layers of security like “Play Integrity” are also placed to safeguard your media content from playback on unauthorized apps, rooted Android OS, etc.

Challenges in Setting up OTT Streaming Infrastructure

Compatibility across devices

In the case of IPTV (Internet Protocol Television), the content was served to a traditional set-top box installed at the viewer’s home. The client media player is embedded in a connected TV or set-top box. One playback device and a single media format. Conversely, with OTT DRM, the video content is made available across multiple devices (smartphones, laptops, connected TV, game consoles, etc.). Each device supports a different media format, video resolutions, and more. The infrastructure should be so designed that every piece of content is available in the best possible resolution and file format on every supported device.

Storage optimization

For every OTT service, content is king. The demand for fresh, high-quality video content keeps rising, and so is the storage space. The OTT video content needs to be in the best possible resolution and storing different file formats requires enormous storage space and hence, increased storage costs. Thanks to video hosting websites like VdoCipher that offer complete video hosting infrastructure with additional security features based on your video bandwidth and storage utilization at affordable pricing.

Video Quality

OTT services must provide seamless and smooth video content delivery with the best viewing experience. This means the video streaming must have reduced buffering and latency. In places with low internet bandwidth and connectivity, the content faces buffering and latency issues, leading to poor user experience. The video delivery must be optimized to deliver interrupted video streaming even during low connectivity. It is possible via Adaptive Bitrate Streaming (ABR).

Content Delivery Speed

The moment you make a playback request on an OTT streaming platform like Netflix, the content is served almost instantly with minimized latency. This is made possible via Content Delivery Network (CDN). The geographically distributed network of servers stores the content copies, and whenever a playback request is made, the content is delivered via the viewer’s nearest proxy server. The OTT service infrastructure must employ CDN to serve video content without interruptions, even when the origin server is impacted. The challenge that needs to be addressed by every OTT video streaming platform is the content delivery speed. The faster the content reaches the viewers, the higher the retention rate for that content stream.

Video Piracy

Ever since the videos made an online presence, the cases of video piracy and illegal downloads have skyrocketed. Each year, businesses lose reputation and billions in revenue because of content leaks, piracy, and unauthorized distribution of media content. While setting up an OTT streaming infrastructure, securing the video streams is the utmost priority and comes with huge challenges. The videos must be well encrypted using advanced technologies like DRM, which employs private key exchange mechanisms to secure videos from illegal downloads, hackers, and usage.

Types of OTT Solution Provider Platforms

OTT video or TV solutions – comprises OTT television, streaming television, a broad range of video content. The video distribution is through an app, PC, phone, or smart television. Examples include Netflix, Peacock, ESPN+, and YouTube TV.

OTT Messaging solutions – OTT messaging is an alternative to mobile operators’ text messaging services. According to Statista, in 2021, Whatsapp, Facebook Messenger, and WeChat were the most popular OTT messaging apps, accounting for nearly 74% of active users. OTT messaging solutions are more interactive and engaging, use the internet, and have overtaken SMS services.

Voice calling solutions for OTT – Includes VoIP, for instance, Skype, WhatsApp, WeChat, and Zoom, which use open internet communication such as WiFi and 4G.

OTT Audio Applications – Music streaming services like Spotify, Podcast, and SoundCloud.

OTT Video Streaming Statistics

• On average, a viewer pays $8 per month per OTT service and spends over 100 minutes daily on an OTT app.
• In June 2021, streaming services accounted for only 27% of total TV screen time in the US. Out of the 27%, 7% were from Netflix.
• Among all countries, the USA will generate $87.26 billion in 2022, making it the leading OTT revenue generator in the world.
• The largest SVOD (subscription video-on-demand) revenue in 2021 was Netflix, with 30.8% of all OTT subscription revenues in the US, followed by Disney
• The largest segment is OTT Video Advertising, with a market volume of US$180.40bn in 2022.
• The next most significant contributor is video streaming, with an estimated market size of $70.8 billion in 2021.

Need for Security as a Solution for OTT

As the OTT platform content is streamed online, there are various ways to compromise security. It includes password compromise, unauthorized access or login, downloading via third-party software, and much more. There are even instances when confidential and sensitive data such as addresses, payment details, and other information is leaked online. The chances of malware attacks are also pretty common nowadays.

Video Piracy has become a serious problem for OTT platforms. Easy access and global internet availability allow for the set up of peer-to-peer sharing networks like Torrent for the mass distribution of pirated content for free. The shutting down of some of these websites has proven ineffective as new sites such as Pirate Bay, and 1337X have emerged.

‘Annual global revenue losses from digital piracy in the movie industry count between $50 and $96 billion while the illegal download of copyrighted materials amounts nearly 25% of the global bandwidth.’

Today content distributors and OTT platforms are focusing on implementing the best possible security to authenticate and authorize users to avoid video piracy, financial loss, and brand image tarnishing. Securing video content not only at the source level but at the viewer’s device limits the instance of video piracy. Thus, any OTT platform must use technology like DRM, offered by VdoCipher, to not only securely deliver content to authorized users but also prevent it from illegitimate downloads and sharing.

Custom OTT Solution Development with Security

As we discussed in the working of an OTT solution provider, two heads must be developed. The first one is secure and multi-format storage, and the second is secure delivery. This Video Streaming Infrastructure will provide scalable, secure, and faster video delivery for authorized playback or download. It is better to use AWS S3 for storage as it provides a scalable infrastructure for video object storage, but further additions are required to enhance the delivery. These additional features include global distribution via AWS CloudFront CDN, transcoding, and encryption. To list down, here are the following necessary components needed to be set up.

1. Setting up an S3 bucket
2. Upload a video to the S3 bucket
3. Transcoding to support Adaptive Bitrate Streaming
4. Encrypting the Files before storage
5. Create a CloudFront origin access identity and CloudFront distribution
6. Configure your CloudFront distribution for your custom domain name
7. Dynamic key exchange playback for Encrypted video chunks

All these components are required as basic features to handle different devices and across globe secure delivery. If adaptive bitrate streaming is not set up, it will lead to playback disruption for low-bandwidth network users. Similarly, CDN provides faster delivery across the globe. Finally, setting up a DRM layer of security will protect your videos from illegal downloads and screen capture. Also, setting up all these components requires your familiarity with coding. Using a secure video hosting solution provider with AWS infrastructure is better if that is your weak or capital-intensive area.

Best OTT Solution for Video Delivery – VdoCipher

Encrypting video content makes it into an unreadable format, and every time a playback request is made, an encryption key has to be provided along with the content. Hackers can easily retrieve this key and gain free access to the premium content. Now arises the need to securely deliver the content and protect the key from unauthorized access.

To better manage the key exchange for decryption and how the media content is accessed and consumed, the best available solution to the rescue is DRM (Digital Rights Management). OTT platforms like Netflix and Amazon Prime Video have DRM as an integral part of their ecosystem.

VdoCiper, a secure video hosting platform offering Hollywood Grade DRM Encryption, protects your premium videos from unauthorized access and illegal downloads. 2500+ customers from over 120 countries rely on VdoCipher to secure their video content and revenue against video piracy. Being a direct partner with Google and using Google Widevine and Apple FairPlay DRM, videos streamed via VdoCipher cannot be illegally downloaded using software or internet plugins.

Hollywood Grade DRM Encryption

Secures videos from unauthorized access and downloads using the highest encryption security, Google Widevine, and Apple FairPlay DRM.

Dynamic Watermarking

To discourage screen capture and establish brand identity, user ID and email information are dynamically watermarked over the video. It is customizable for color, transparency, and size.

Secure Offline Downloads in Apps

VdoCipher iOS native SDK enables video download on the device in a secure manner. You get an option to limit the time duration for which an offline video will be available for download. Also, you can download it inside your Android app with time validity for the downloaded video.

Screen Capture block in Android and iOS Native app

Our native SDK integration blocks screen capture at the hardware level and discourages screen capture. This is a very useful feature for securing your videos against piracy.

Play Integrity for App-Based Security

Google’s Play Integrity provides additional video security against application tampering and replay attacks. VdoCipher’s Android SDK easily integrates it to block playback on duplicate apps. Check out our play integrity apk documentation to know more.

WordPress and Moodle Plugins

VdoCipher WordPress video plugin seamlessly supports all popular WP membership plugins, including Members, Restrict Content Pro, MemberPress, and WP eMember. The video plugin also supports LMS such as WP CourseWare, LifterLMS, Sensei, and LearnDash.

Geo-Blocking

Blacklisting or whitelisting specific countries is possible with geo-restrictions. You can block a range of IPs, such as a company or college. Add time-based restrictions and set the expiry of URLs.

Smart HTML5 Video Player

Our smart HTML5 video player comes with dynamic controls with multi-lingual subtitle support. There are dynamic controls to change playback speed, choose theme options and Javascript API to add overlay buttons and track viewer interactions with video.

Adaptive Video Quality

There are times when the video quality deteriorates, or the video stops playing due to low internet connectivity. We offer multiple bitrate streaming, meaning the video stream is encoded at different bitrates, and video quality auto switches during playback.

AWS CDN and Server

VdoCipher uses Global AWS Cloud Infrastructure (Storage on AWS S3, Transcoding via VdoCipher algorithms on EC2, Streaming of content via CloudFront CDN). Content delivery via geographically distributed CDN servers ensures minimized latency and uninterrupted delivery of videos.

FAQs

Which OTT platform has the highest subscribers in the world?

Netflix remains the top OTT platform with the highest subscribers despite the recent dip in paid subscribers. It has over 223 million subscribers worldwide in the recent quarter.

What are the major monetization options available for the OTT platforms?

SVOD (Subscription Video on Demand), AVOD (Advertisement Video on Demand), freemium, and sponsored content are the major monetization models.

What are the benefits of OTT advertising?

OTT is an emerging market with increased brand awareness, mostly unskippable ads, and a younger demographic reach.

What is the difference between OTT and VOD?

OTT is related to how the content is delivered via the internet, while VOD is related to how the content is consumed. It can be via a single purchase, subscription, or service.

How do Multi-DRM solutions like VdoCipher secure OTT video content?

Multi-DRM using Google Widevine and Apple FairPlay security ensure that your videos are securely encrypted, transmitted, and accessible to only authorized users.

Jyoti

Jyoti began her career as a software engineer in HCL with UNHCR as a client. She started evolving her technical and documentation writing skills to become a full-time Content Marketer at VdoCipher.

The post OTT Video Streaming Solution Provider for Best Delivery and Security appeared first on VdoCipher Blog.

What is TVOD (Transactional Video on Demand) ?

As the name suggests for TVOD, the user makes a payment for a particular choice of video or a small combination of videos. This can be in form of making payments for a movie or Series combination. Sometimes paying for a movie to watch in one go is usually known as “pay-per-view“. A famous example of a VOD platform with TVOD as the major model is Youtube paid videos. There is a cost for each movie. After looking into definitions, pros, and cons of these aspects, we also present some key stats and estimates on SVOD & TVOD implemented with Netflix, Youtube, Hotstar, and some of the VdoCipher customers. (Infographics are below)

Most customers are familiar with TVOD as pay-per-view when they buy access to a piece of content. Examples include movies, television programs, and sports events. TVOD transactions can occur as either a short-term rental or a long-term license. However, in most cases, the consumer does not own the content they purchase. It simply does not expire unless the consumer violates the terms and conditions of the service.

Vudu, Google Play, iTunes, and Redbox are examples of TVOD service suppliers.

What is SVOD (Subscription Video on Demand) ?

Prominent famous VOD sites like Netflix, Hulu, Hotstar, Amazon Prime , Byjus etc have Thousands of hours of content.  They provide such unlimited stuff in an affordable price per month or year. This idea of providing an offering of bundled video content in one to all pricing is SVOD. The basic practical assumption for SVOD is that the user will only watch a certain amount of content (say 20 to 100 hours per month).  If the user is able to somehow watch all the content offered to him, the bandwidth costs for the business will lead to overall losses.

Now we enlist all the advantages and flaws in the two models. Thus, the reader can make an informed choice amongst the two. We also then look at some numbers using famous and medium sized companies operating on these two models. It will help you better understand and implement the economies for your business. Before that lets look at a stats full infographic on SVOD with Netflix.

SVOD employs a subscription-based model of monetization in which the customer is paid a fixed monthly or annual cost. SVOD often binds the user to a short-term contract or none like standard cable packages. It allows them the freedom to cancel whenever they like.

Netflix, Disney+, Hulu, Apple TV+, and HBO Max are a few instances of SVOD service providers.

SVOD for Netflix: Key Stats, User Engagement, Monetization

What is AVOD?

Video on demand allows users to select and watch videos as per their choice on any screen. In simple language, AVOD or advertising video on demand is the monetization of video services where users can watch videos intermixed with commercial advertisements without buying subscriptions. The primary concept of this model is that the users must watch ads to view the content. Although there are many more, Hulu and  YouTube are the most well-known AVOD platforms.

AVOD is prevalent on television channel applications and user-generated video platforms. This sort of VOD service provides viewers with free content interrupted by commercials. Using the AVOD business model, the firm relies on this income stream to maintain the platform and fund new content.

YouTube, Facebook Watch, Peacock, IMDb TV, and Pluto TV are a few examples of AVOD providers.

How is SVOD, TVOD and AVOD are Different from other Models(SVOD vs. AVOD vs. TVOD)

Technological improvements cause content distribution systems to change so businesses may use various content monetization tactics. Before launching a product, it is essential to explore all choices. This is because some existing VOD providers have a more extensive, more committed user base than others.

SVOD vs TVOD vs AVOD

Technological improvements cause content distribution systems to change so businesses may use various monetization tactics. Before launching a product, it is essential to explore all choices. This is because some existing VOD providers have a more extensive, more committed user base than others.

Before comparing SVOD, AVOD, and TVOD, let’s define each word separately.

As conventional methods of seeing and engaging with content alter, media businesses must be innovative in their platform monetization strategies. How do they decide between SVOD vs AVOD vs TVOD? Generally, it relies on the platform and the content collection accessible to clients. Here are some instances of when to employ each sort of VOD service monetization approach.

SVOD is an appealing alternative for media firms since it provides a consistent cash stream. Media firms like recurring income, and SVOD was a popular model for cord-cutters in the early days. However, compared to AVOD vs TVOD vs SVOD models might suffer client retention since providers must continually attract users with content or price discounts to renew – for instance, many will offer a lower yearly charge to keep customers subscribing. 

Customers, who are more inclined than ever to exercise choice in a digital economy, are suspicious of recurring fees and efforts by media corporations to restrict access to multiple users or devices. To be successful with an SVOD strategy, media businesses must provide an extensive and constantly updated library of content to keep users engaged. SVOD may also be a viable alternative for organizations that cannot or do not want to collect ad income to maintain their platform regularly.

AVOD ensures a revenue stream for content that may not generate direct or recurrent client money. The AVOD business model is often used by companies that develop or gather a vast content library. However, free content sometimes comes with a catch. It may be difficult for media firms who employ the AVOD model to retain subscribers, either because the perceived quality of the content is poorer than that of SVOD or TVOD providers or because users get annoyed with the ad interruptions. Additionally, AVOD may provide significant technical obstacles to ensuring that advertisements are shown correctly and are interactive and personalized for the viewer.

Compared to SVOD vs AVOD, TVOD provides the most transparent expectations for providers and consumers. When you offer a rental or license, you know the specific operating costs and overhead for each piece of content, allowing for more precise pricing and profitability. Similarly, buyers know precisely what they are purchasing. Even if you give free content, there is no assurance that a client will utilize a TVOD platform more than once. TVOD providers must often match or beat competitors’ pricing to encourage client loyalty. 

Because a TVOD client may be occasional, it is difficult for the platform to accumulate sufficient data to provide content suggestions that would tempt them to return. TVOD providers must also be able to promptly and precisely identify the user’s location to process payment and serve content in the correct language.

SVOD, AVOD, and TVOD have advantages and disadvantages; hence, many media businesses use various techniques. Larger companies may even offer product-specific VOD service variations. For instance, YouTube offers free user-generated content (AVOD), as well as premium content for rent or buy (TVOD), and particular subscription-based entertainment services, including live TV (SVOD) (SVOD). Similarly, Hulu takes a hybrid approach with their platform, offering four price levels that include a mix of SVOD and AVOD, as well as the option to bundle with Disney+ and ESPN+. Apple and Disney+ both use mixed methods for VOD monetization. Amazon Prime Video allows users to add free trials of other streaming services, such as AMC+, as an additional means of attracting consumers.

Why Choose AVOD?

Increase Audience Engagement: 

Use advertisements to attract viewers’ attention and pique their interest in the content. It also encourages consumers to examine previews or short snippets before purchasing premium content.

Enhance Audience Reach:

AVOD services are versatile in terms of geography. Thus marketers may choose their intended audiences. Using AVOD, the targeted audience may see your advertisement and browse your website or shop while waiting for their subscription-based content.

Verified Users:

The ad-supported video streaming technology AVOD provides marketers with a more targeted approach. They may measure the ROI of their campaigns using data acquired from adverts on videos from verified users. In addition, marketers better understand where to put their advertisements to reach the most significant number of people.

Monetize With AVOD

Google will seek out advertisers or negotiate directly with businesses seeking to spend money on advertising. In most cases, AVOD is coupled with paid or free broadcast content to produce additional cash that enhances your company compared to competitors. For instance, PPC, or being paid per click, is an excellent method for monetizing a blog.

Except for fresh content, renowned blockbuster movies, and popular content featuring a celebrity, advertising-supported AVOD is an excellent alternative as a revenue source for anything else.

The AVOD business model is well suited for content producers or operators with a wide selection of youth-appealing content, such as TV content, catch-up content, and influencer content such as celebrity vlogs.

AVOD is advantageous for content aggregators that get a large volume of content from several sources and broadcasters with fresh and archived content.

AVOD is excellent for free-to-air television networks that can generate optimal income. Some types of content are more suited for AVOD, such as extended content and classic movies, since there is sufficient time to display advertisements as part of the package to make the price reasonable.

Why Choose TVOD?

One of its primary advantages is that TVOD caters to customers who simply wish to pay for the content they see.

This implies that with TVOD, you can: 

• Quickly provide more excellent value since each piece of content would have its pricing, enabling consumers to get precisely what they’re paying for;
• Provide cheaper content to set lower pricing, rather than charging a higher membership cost and losing prospective clients.
• Have more price flexibility and make content accessible for a short period or allow clients to retain it permanently.

Additionally, conducting one-time paid events, such as concerts or gaming matches, is an excellent option.

PROS

1. Accurate estimation of operational TVOD costs and lower risks:

   As the estimates for operational margins is being done quite accurately before the start of business; you never run into the risk of a single user or group of user exploiting the bandwidth. Operational costs in TVOD business are the costs of server + CDN to stream the video of a particular size + cost to acquire the single customer.

2. Easy revenue distribution model to video content creators:

   Unlike SVOD there is no confusion in what the user paid for. Thus the revenue share distribution for TVOD content is usually straightforward.

3. Better revenue opportunities for fresh release VOD content

   Generally the audience worldwide has an affinity for newly released movie and serial content. Thus charging a small amount for such piece of content leads to immediate payment from users and can reach a considerable scale.

4. TVOD can work on smaller scale then SVOD, Good option to launch business

   Since operational margins are fixed and revenue can be linked directly to content owner , it is a good option to start. SVOD generally kicks at a considerable scale.

CONS

1.   User retention is a problem in TVOD

   Since user has the tendency to pay for a particular content and then go off the platform, there is no motivation or push for him to buy new content. SVOD can just push to user to try some new unexperienced content.

2.  Content visibility controls content revenues: Challenge of recommendation

   Since the user is going to pay for the exact content and watch, whatever is presented to him in homepage or as a priority attracts his attention. There are greater chances that he will pay for it. There might be better compatible content for him in the inside pages, which by the time he discovers has no budget left to spend on it. Thus personal recommendations and presentation are a key aspect of the monetization in TVOD platform.

3. Limited Trial Opportunities, Restrictive for large content size. (E.g 2000+ hours)

   It is bad to expect the user to have an idea of all the content you have and be already decisive about the video to make payment for. He cant try without paying which limits the explorative nature of the platform.

   We will go to SVOD’s pros and cons after this infographic.

   
   TVOD for Youtube Movies, SVOD for Hotstar

Why Choose SVOD?

Numerous streaming services currently use the SVOD monetization model due to its multiple advantages for both the benefits and its subscribers.

This is because subscription services provide users with dependability, particularly when comparing SVOD to AVOD.

AVOD might provide uncertain income due to its reliance on advertisements alone. With SVOD, you know exactly how much you will get at the end of the month, and you may set the pricing of your content as you see fit.

Using SVOD, you can:

• Have a dependable source of revenue since your audience pays a monthly membership fee.
• Give clients greater flexibility by allowing them to decide when to terminate service.
• Cultivate a more exclusive and devoted client base that feels like a community; after all, they are paying for your content.

PROS

1. User Retention is high: New content trial is easy

   Since the user has paid for the whole platform in SVOD, though he has some favorite content there is also a lot of additional content he can try. Mail campaigns, ads, and homepage prompts can motivate the user to try additional content. Yes, it will lead to higher costs, but it also leads to higher retention, more content ingestion and thus better performance of the overall platform. Iterations over recommendations and costing are done for better monetization strategies.

2. SVOD allows recurring revenue streams: Better Predictability

   SVOD supports recurring charging models. Users can put in their credit card which renews the contract on monthly basis. This allows for the VOD platforms to better predict their upcoming revenues and thus grow their business.

3.  Best for large content portfolio

   SVOD works best if you have a large content portfolio, provides better retention, time per user, and trust to content providers that their content reaches the maximum audience. More details on SVOD is here.

   CONS

4. SVOD Only works at scale, Risky at a low user base

   Since SVOD does not inherently directly link operational costs of bandwidth to revenues, it works generally at a larger scale. The cost of delivery reduces at scale.  High pricing or Limitation on content hours can make it work at a lower audience number.

5.  Revenue distribution agreements are tricky in SVOD

   It is difficult to determine which movie or series actually prompted the user to buy the subscription. Though video views and engagement data are at the backend, the overall revenue distribution model becomes tricky. It is a combination of pre-paid license fees for content, revenue share on basis of the number of views, and retention rates, etc.

6.  Recommendations and Visibility for large content is a challenge

   Since VOD platforms with SVOD as a major revenue channel have 1000s of hours of content, which movies/serials to present at the front, to recommend is a challenge. Though at the same time, it is an opportunity to charge money from new content producers for advertisements and promotions on the platform.

Now we present some key stats and estimates on SVOD & TVOD  implemented with some of VdoCipher customers.

How To Find the Best VOD Model To Use as a Content Creator

AVOD business models rely on advertisements to generate money. Advertisers pay to have their ads or promos shown on a specific program or channel, while consumers may watch content for free. These three categories compose the conventional AVOD Business Model:

Content Creators/ Publishers:

Content developers produce high-quality works that entice viewers and marketers to pay for advertisements. When the content gets a large audience, the viewers become a source of money for the publishers via ad revenue. Similarly, marketers have grown increasingly interested in paying publishers for advertisements.

Advertisers:

In the AVOD business model, advertisers pay publishers to promote their goods or services in content to attract more viewers’ attention. Advertisers rely on content providers to ensure that they reach the appropriate audience. In addition, marketers pay for specific time slots or channels to reach their target audience and assess the return on investment of their campaign (ROI).

Audience/ Viewers:

Audiences are the primary consumers in the AVOD business model since they come to see content, and advertisers pay for their attention when they view advertisements. The audience is the link between publications and advertising.

AVOD Market Size and Its Growth

Advertisers and content providers or publishers want to capitalize on the vast scale of the AVOD industry. The market is anticipated to expand due to the technological advances that will let this business model evolve further. Listed below are the reasons why the AVOD market is increasing.

• Innovations in streaming technologies

• Boost the number of smartphone users

• Increase in the generation of internet content.

The business model for AVOD is anticipated to expand even further because of its enormous market size and exponential growth potential. Over the next decade, the AVOD market is projected to grow by 144 percent, hitting $66 billion in sales across 138 countries.

Since the introduction of cryptocurrencies, there has been a surge in online content production. Streaming technology will get more sophisticated, making streaming quicker and films crisper for users. This implies kids will watch videos for longer and more often. The number of smartphone users will rise as more individuals can now afford to own one. These reasons will result in a substantial AVOD market that will benefit all stakeholders.

When selecting the right video monetization platform, content creators need to take an informed decision and select the monetization model that best suits their needs.

To launch a VOD platform with the highest security from piracy + seamless experience, Start a free trial at VdoCipher.com.

This short video here explains how to upload, embed, and securely stream videos through VdoCipher.

Popular FAQs Around VODs

What are the main differences between TVOD and SVOD models?

TVOD, or Transactional Video On Demand, operates on a pay-per-view basis, where users pay for each video or series they want to watch. This model is ideal for newly released movies or exclusive content. SVOD, or Subscription Video On Demand, on the other hand, offers unlimited access to a library of content for a recurring subscription fee, making it suitable for users who prefer a wide range of content at a fixed price.

Which VOD model is more profitable, TVOD or SVOD?

Profitability can vary based on several factors including content type, target audience, and platform reach. TVOD can generate high immediate revenue from new or exclusive content, while SVOD provides a steady income stream and can be more profitable over time with a loyal subscriber base. The choice depends on the content provider’s strategy and resources.

How do content creators decide which VOD model to use?

Content creators consider the nature of their content, target audience, and market trends. For exclusive or premium content, such as new movie releases or special events, TVOD might be more appropriate. For a broader library aiming to attract a steady subscriber base, SVOD could be a better fit. Creators may also look at hybrid models or change strategies based on performance and user feedback.

Can a platform offer both TVOD and SVOD models?

Yes, a platform can offer a hybrid model that combines TVOD and SVOD, allowing users to choose between paying for specific content or subscribing for access to a broader library. Example, Amazon Prime. This approach can cater to a wider range of user preferences and maximize revenue by attracting both types of viewers.

Siddhant Jain

CEO, VdoCipher. Writes about video tech, ed tech and media tech.

www.vdocipher.com/

The post SVOD vs TVOD vs AVOD: Comparing the Three Video Monetization Model In Detail appeared first on VdoCipher Blog.

Such services are getting used by all major OTT platforms like Netflix, Amazon Prime, Hulu, HBO, Hotstar, etc. They either go in for capital-intensive in-house solutions or less expensive outsourced solutions like VdoCipher. For companies like Netflix, in-house solutions give them more control but require large teams and infrastructure with licensing solutions. But for mid-size or early OTTs, a platform provider solution is a necessity.

What does OTT mean in media?

OTT, or over-the-top, refers to delivering movies, series, and TV content via the internet without the need for a traditional pay-TV subscription. This type of content delivery has recently seen a surge in popularity as more and more people ditch their expensive cable packages in favor of cheaper, more flexible online alternatives. People have sought ways to cut the cord and save money on their monthly TV bills. In addition, many OTT services offer exclusive content that can’t be found elsewhere.

OTT (over-the-top) services are delivered outside of traditional cable or satellite providers. This can include streaming services like Netflix, Hulu, and Amazon Prime, as well as specific channels or content providers like HBO Now.

According to Statista, the user penetration in the OTT video segment is expected to reach 53% and the number of users is expected to cross 4215 m users by 2027.

Why OTT?

The cable and satellite industries are no match for the popularity of OTT streaming services. People prefer the flexibility and convenience of streaming and the low cost. OTT is available on multiple devices and can be watched whenever the consumer wants.

OTT services are also the present and future of the entertainment industry. They allow consumers to watch their favorite shows whenever they want and provide new ways of delivering content with interactive features.

Benefits of OTT services

Device independent viewing – With OTT, one can watch their favorite video content at any time on different devices. In a traditional TV setup, viewers have to watch the content at a fixed time slot and on a single device. To watch OTT content, you just need an internet connection or WiFi and a connected device.

Cost-effective – OTT platforms have a huge library of TV series, movies, documentaries, and regional content. All this is available at affordable pricing. In the USA, for example, Netflix pricing goes from $6.99/month to $19.99 for premium video content.

High-quality personalized content – Another good thing about OTT platforms is the availability of high-quality video content. From regional to content covering different genres, viewers can exactly find what they are looking for and only pay for that service or content.

Flexibility – OTT gives viewers the freedom to choose what they want to see and when they want to see. Viewers do not have to wait till a certain time to view their favorite piece of content.

Ad-free experience – Most viewers don’t like advertisements especially when they are watching videos. It interrupts the overall viewing experience. Most OTT gives you the flexibility to opt for an ad-free subscription. Even the advertisements are well-targeted based on the viewer’s online behavior.

A platform for creators and artists – OTT platforms have changed the landscape of the media and entertainment industry. Both artists and content creators have the opportunity to present their content among global audiences and gain popularity.
Regional and multilingual content – According to the FICCI report, the share of regional content will account for 54% in 2024. All OTT platforms have recognized the need to acquire regional markets with original content.

What are the challenges & solutions for OTT?

The challenges of OTT videos are many and varied. Perhaps the biggest challenge is simply getting people to watch your content. With so many options available, it can be challenging to stand out from the crowd. Additionally, OTT video providers are also facing challenges related to content and consumer privacy. Multiple OTT video providers have a competitive market for access to content, and there is a rise in the cases of video piracy and unauthorized video access. Finally, OTT platforms are still relatively new, meaning there is a learning curve for content creators and viewers.

Customer Retention

For the business model of any OTT platform, the audience is a key factor to focus on. Before creating content and expecting to get viewers, knowing your audience and generating content on what your viewers may like is very important. With such an increasing number of OTT platforms, retaining your customers and offering what they prefer is quite challenging.

Poor Technological Infrastructure

Technology is what drives a successful online business and holds true for an OTT platform. From APIs, and integrations to security, keeping all the technical aspects up and running considerably reduces the risks associated with any OTT platform provider.

Security and Video Piracy

The media industry has been facing piracy issues for a long time. Video piracy impacts not only the businesses, economy, and brand reputation but also the livelihood of those directly or indirectly associated with the video industry. The most secure measure in place to combat piracy is Video DRM.

Payment Processing Issues

An ideal payment gateway is one which has effortless payment gateway integration and customers smoothly follow the complete checkout process. Managing online payments, catering to international subscribers, managing multiple payment modes and most importantly security are the key areas to work on.

Buffering and Latency

Buffering and latency affect the viewing experience of users. Buffering causes the video to stop and start again while latency delays the duration between when the signal is sent and received. This causes synchronization differences between the audio and video.

Need for more storage

Video files especially 4K videos take up a significant amount of storage and an OTT platform needs to store a big amount of video files for streaming. They need to choose an OTT platform provider that can easily accommodate the growing demand of storage space.

Password Sharing

It’s a common habit of sharing your OTT login credentials with friends and family. It may lead to your account compromise and access to your personal information. From the perspective of an OTT platform, it leads to revenue loss and there is no record of who accessed your account and a single subscription is used by multiple viewers. OTT providers now limit the number of devices accessing the content and restrict unauthorized access.

Secure Content Storage

Content is the soul of an OTT platform. Any unauthorized access or leak of video content leads to monetary losses as well as a reputation. There is no scope for video piracy and illegal downloads. Therefore, OTT platforms must have robust security in place like DRM encryption, IP restrictions, Domain blocking, secure access, and regular monitoring of the security protocols.

Offline Streaming Security

When OTT content is downloaded from the platform and viewed offline, there is almost negligible control over content usage. When that content is freely distributed, no one will pay the subscription fee to watch it on any platform. To cater to this, OTT DRM technology controls unauthorized downloads and limits the time for which a video is available for download.

Screen Recording Protection

There are various ways to screen-record video content using a camera or microphone. The content becomes available for free although the video quality will be a bit distorted. To discourage this, dynamic watermarking is one such feature that makes a visible or invisible mark on the video to help identify the video source.

Geo-blocking and VPN Detection

Geo-blocking restricts content availability based on a viewer’s geographical location. OTT platforms use this feature to comply with the licensing agreements, enforce geographical restrictions and apply different pricing as per country or continent. Many users use VPNs to bypass the geo-restrictions and access the content in blocked regions.

As solutions, there are services ranging from video creation to marketing, but the most crucial answer is secure video hosting. This is because of the illegal downloads happening across the globe. It endangers the revenue from subscriptions or fees for premium video content. The secure video hosting provider also needs fast video delivery across the world. This is possible by using large-scale CDN providers like AWS CloudFront. Bulk upload, API, and SDKs are also important for an OTT provider looking to scale.

What are OTT Platform providers or OTT service providers?

An OTT platform provider offers online solutions to securely host on-demand or live content and broadcast them over the internet. An OTT service provider provides a platform or service for delivering over-the-top content. They typically offer a suite of features and benefits that allow content providers to reach their audiences directly, without the need for a traditional pay-TV provider. An OTT service provider offers the framework and video players to embed video content to various websites and channels for mass distribution.

Also, among the major features, a dashboard for video analytics and quick access options like embed and API are a must. The platform provider will also provide CDN infrastructure and multiple bitrates streaming for faster and uninterrupted access to videos.

Key features of OTT Platform Providers or Service Providers

• Increased security: an OTT provider serves people worldwide, so it is essential to have security a top priority. Otherwise, the potential for video piracy and other security issues is enormous. To protect their users, OTT platform providers must implement strong security measures. This includes securely encrypting data in transit, limiting content usage to only authorized devices, using strong authentication methods, and ensuring that their systems are constantly monitored for suspicious activity.
• Scalability: OTT service providers must offer scalable plans, so you can increase your content offering as your business grows.
• Flexible Pricing: In a highly competitive market, OTT platform providers must offer flexible and attractive pricing plans to win and retain customers.
• Customer support: Today, customer satisfaction is the key to success. OTT platform providers must offer superior customer support to stand out from the crowd. The provider must provide 24×7 customer support via chat, mail, and more.
• Easy to use video APIs: Video APIs for OTT platforms provide a way for developers to access and control video content. They also allow OTT providers to manage and monitor video usage. Additionally, video APIs can give OTT platform providers insights into how their users watch video content, which can help them improve the user experience.

VdoCipher as complete OTT Platform Provider Solutions

VdoCipher is best known for its DRM-encrypted secure video hosting solutions. The company offers its secure video streaming services to more than 2000 businesses across 40+ countries. Video streamed via VdpCipher cannot be downloaded illegally or by any internet plugin or software. Using Hollywood Grade DRM Encryption, the one used by Netflix to deliver the content on the web securely, Vdocipher protects your premium content from unauthorized usage and distribution. It takes a lot of time and hard work in making video content, and within minutes, it gets pirated online. With VdoCipher, one can not only protect their videos from video piracy but also boost revenue and deliver the content to the users in an easy-to-go way.

Features:

DRM Encrypted Video Streaming – Using Google Widevine and Apple FairPlay DRM, videos are DRM encrypted during encoding. The video can only be decrypted on the VdoCipher media player. This way your videos are secured from piracy and unauthorized usage and distribution.

Google Widevine DRM offers the highest security in Google Chrome, Android, and Chromecast. Microsoft’s Playready delivers video content protection on Windows platforms. Video creators who wish to stream premium videos on iOS and Safari require Apple’s FairPlay DRM license.

Dynamic Watermarking – Dynamic watermarking allows the insertion of watermarks into digital content like videos in real-time. This watermarking can be used to protect against unauthorized copying and distribution of digital content, such as video, audio, and images. Adding text to video using Dynamic watermarking deters screen capture and protects the video content. You can add viewer-specific moving/static watermarks with email, user id, IP, time stamp, and more.

IP and Geo-based Restrictions – IP geo-restriction is a way of restricting access to online content based on the geographic location of the user’s IP address. This can be used to prevent users from accessing content unavailable in their country or restrict access to certain types of content to only users in specific countries. Through VdoCipher API/Dashboard, you can easily configure any IP and country restrictions on your video content.

Session time restrictions – With our multi-DRM APIs, you can configure the session duration for playback during license generation. This proves very useful for sensitive content.

Rental constraint for offline files – It is possible to allow viewers to download an encrypted video version to their Android, iOS, or Chrome devices. The video can be made to expire after a specific time by specifying a rental duration. The access token also needs to be specified to allow license persistence. Our Android SDK enables managing downloads to and playback of offline videos.

Smart HTML5 Video Player – VdoCipher Smart HTML5 Video Player offers Adaptive Multi-bitrate Playback, Multi-language support, playback speed change, dynamic player controls, and much more like.

• HD Streaming even at low bitrates
• Pre-available player themes
• Easy embed options using iFrame, plugins, and API
• Video Analytics
• Secure Downloads on Android
• Custom Overlay and Tracking with JavaScript API

FAQs

What are the benefits of OTT video?

Consumers love the flexibility and convenience of OTT videos. They can watch their favorite shows at any time and from any device. OTT video also provides new ways of delivering content that fall outside traditional broadcast models.

How does OTT video differ from broadcast and cable television?

Traditional broadcast television is watched live and is provided through a closed system. Consumers must subscribe to a cable or satellite provider with limited content. OTT video is delivered over the Internet and is consumed through an open system. OTT services are typically much cheaper than traditional cable or satellite TV packages. They offer a much more comprehensive range of content, including many niches and international titles that are not typically available through conventional broadcasters. OTT also gives users more flexibility in how they watch content, as they can watch shows and movies on demand or even download them offline.

What are the potential downsides of OTT services?

With some great options out there, it’s essential to be aware of the potential downsides of OTT services. First, since these services are delivered over the internet, they can be susceptible to outages or slowdowns. Second, not all OTT services are created equal – some are of better quality than others. Finally, most OTT services require a paid subscription, which can add up over time. Overall, OTT services are a great way to watch TV without paying a fortune.

Vishal Sharma

My expertise focuses on DRM encryption, CDN technologies, and streamlining marketing campaigns to drive engagement and growth. At VdoCipher, I’ve significantly enhanced digital experiences and contributed to in-depth technical discussions in the eLearning, Media, and Security sectors, showcasing a commitment to innovation and excellence in the digital landscape.

The post OTT Platform Provider for Video Solutions and Service appeared first on VdoCipher Blog.

Basics on Video Monetization

Video monetization is the process of generating income from the videos you publish online. Creators get paid when someone performs any of the activities described in the ‘How to Monetize Videos’ section while, before, or after watching their videos. The more people watch your videos or take a subscription, the more earning potential you have. Broadcasters can make significant revenue from their videos in a number of ways. This includes ad insertion, incorporating sponsorships, offering paid subscriptions, and more.

YouTube has been the first choice of creators to monetize their content online owing to its vast reach. In 2020, YouTube advertising generated $19.77 billion compared to $15.5 billion in 2019. YouTube has its own content monetization guidelines which were recently revised. To get videos monetized, the channel should come under the YouTube Partner Programme.

In the case of video platforms like YouTube, ads get placed via the platform’s own javascript. In other cases like embedding videos on your website, it gets done via Video Ad Network-specific javascript.

There are other modes too without the inclusion of any such code. They are specific to the video platform choice you make and they have been discussed in the below section.

How to Monetize Videos

There are multiple ways, some require code, some do not. Some are platform-specific and some are applicable for all. So now let us discuss them one by one.

Own platform or Website

Video services are booming with a growth of 73% between 2018 and 2019. The figures are sharply rising. Building your cloud video platform can bring many benefits to your business. It is also a good start for beginners who are interested in making it from scratch. You can develop the roadmap, freely gate the content, own your audience, and have complete control over the payments. To build an eLearning platform, you can use our guide here. After creating a website or platform, you can decide among several ways discussed in the later section on ‘How to monetize your hosted videos.’

Video Advertisement Network

We know of YouTube, which uses its own partner program to run ads on your videos. Even platforms like Facebook allow you to monetize via their own audience network. With such increased popularity of videos, many publishers now offer their Ad network services for creators. The popular one includes Facebook Audience Network, Primis, AdPlayer.Pro, OpenX, Magnite, Select Media, Verizon Media, and AdMedia.

Sponsored streams

A sponsored stream is a live event on the internet funded or produced by companies who want to associate their image with you. In recent times, the live stream format has gained immense popularity, with brands using it for lead conversion. Sponsored streaming is highly engaging and has some eye-opening statistics. For example, 40% of live-stream viewers admit the media improves the chances of making a purchase. Companies that go live report a 41% increase in their search traffic.

Merchandise or Video Commerce

We can use video content to market and sell products or services to the target audience. Any product available for sale and purchase is merchandise. These promotional items may include T-shirts, mugs, hoodies and more. This is most popular among YouTube creators, and probably you may have encountered merchandise selling channels.

Affiliate links

One of the most common ways for online money making is by using affiliate links. Companies growing customer base generally offer affiliate links to promote. When someone purchases by clicking on that link, you receive a commission from the sale. The commission rates vary from around 4-60% of the sale. You might often see such links in the bio of a video. Popular affiliate programs are Amazon Associates, ShareASale and more. Make sure to use affiliate marketing software to track your campaigns and check results.

Subscriptions

The subscription-based video on demand (SVOD) monetization model is one where the users pay a recurring monthly or annual fee to access the video library. Subscribers need to pay upfront in exchange for 24×7 access to a wide video content range. Netflix, HBO Now are some popular subscription-based video platforms.

Video Monetization Tools, Websites, and YouTube Alternatives

There is no doubt that YouTube is considered the first choice as a video monetization site globally. On the other hand, making money on YouTube isn’t as easy as it seems. From February 2018, creators must meet YouTube guidelines to apply for YouTube monetization or have ads on their videos. As of 2021, In the last 12 months, creators must have 4,000 valid public watch hours and 1000 plus subscribers. This rule has put a lot of pressure on new and small creators who flock to YouTube to earn money. YouTube monetization is getting tougher with increasing competition, strict guidelines and legal actions with being a YouTuber. If you find it hard to generate income from YouTube, here are some best YouTube monetization alternatives with better monetization features, security and ease of use.

1- Patreon

Patreon is a creator membership platform where subscribers support the content creators through a monthly or annual subscription model. The platform hosts artists, video creators, writers, educators, podcasters, photographers, musicians and more. Those who subscribe to a creator’s work are known as Patrons. In turn, the fans or subscribers get ad-free or exclusive access to events, personalized interaction with creators, and much more.

Patreon generates revenue by charging content creators for hosting their content on the platform. While signing up, creators have the choice of three plans:

• Lite – Patreon chargers 5% of the creator’s monthly income
• Pro – charges 8% of the monthly income
• Premium – charges 12% of the monthly income. This plan gives additional options to sell branded merchandise.

Patreon does not host videos on its platform. This means the video needs to be uploaded on a video hosting platform before posting on Patreon.

2- Vimeo

Vimeo is a popular alternative to YouTube offering high-quality video streaming solutions. After the launch of Vimeo OTT and Vimeo On Demand, there is a significant influx of YouTubers on the platform to sell videos online. Vimeo offers multiple ways for online video monetization, but it’s not free like YouTube. Instead, monetizing your video content requires a subscription fee that varies with the plan.

2.1- Vimeo OTT: It offers SVOD-based streaming monetization under three paid plans, Starter, Growth and Enterprise. Creators can earn on a monthly or annual basis by live stream monetization and launching subscription services. Some tools available with Vimeo OTT are Integrated CMS, human support, advanced selling options and more. Creators can even blend the TVOD model with Vimeo live pay per view events. Additionally, it includes one-off payments to rent and buy specific titles.

2.2- Vimeo On Demand: You can rent, buy, or subscribe to viewership under this monetization option. You also get complete control over the pricing. 90% of the revenue goes to the creator after transaction costs. Customers can watch via Android, iOS, and other platforms via the Vimeo app. One needs to have at least Vimeo Pro membership for Vimeo On Demand monetization.

3. Dailymotion

Launched in 2005, Dailymotion is a platform to create and share video content, having 300M monthly active users. Dailymotion offers some decent online video monetization options for publishers and advertisers. However, to earn revenue from video monetization or uploaded videos, you have to become a partner. To start with, one needs to reach 1000 views from your channel’s uploaded content.

Many videos on the platform serve in-stream advertisements, i.e., ads that run before, during or after a video. The higher the view count, the more is revenue generation. The video monetization features include Compatible with third-party trackers and multiple ad-servers. It also includes Dailymotion inventory promotion to own buyers and Video monetization on third-party websites, and more. Creators can even earn by embedding Dailymotion videos on their verified websites.

4. Kaltura

Kaltura MediaSpace is a fully customizable site, serving as a repository of videos. MediaSpace has collaborative communities, channels with contributors, moderators and viewers. Within the MediaSpace instance, content owners can monetize specific titles or channels via SVOD or PPV models. To do so, the InPlayer’s monetization module offers full integration with Kaltura MediaSpace.

5. Wistia

At Wistia, you can monetize videos by adding a paywall and content gate. Just get your video on Wistia, pick a paywall platform (Cleeng & InPlayer) and start monetizing. Wistia integrates with both Cleeng and InPlayer paywalls. Cleeng monetization platform offers PPV, subscriptions and passes monetization methods. Using InPlayer, monetize Wistia videos and accept payments by granting access to the videos.

6. IBM Watson Media

Cloud-based IBM video streaming offers solutions to monetize videos and maximize ROI. IBM has a range of monetization options for live streaming and VOD libraries. IBM offers direct monetization methods like PPV and advertising models for premium content, including Google Ad Manager. In addition, there are mix and match monetization methods like ad-friendly sponsorship or accepting donations via Patreon or PayPal.

Monetize your hosted videos on an eLearning website, LMS or Media platform

For EdTech platforms, monetization strategy should be a top priority to get a good ROI. The right content monetization approach will not only attract visitors but also provide revenue. Below are the well-proven video monetization strategies for an eLearning video platform.

Subscription Model

Subscription is the most popular way to monetize an eLearning platform. In essence, members will be only able to access your learning content library after opting for a monthly or yearly subscription. In addition, members can be subscribed based on the number of courses available, number of users and more.

Premium access

A type of subscription model offering members accesses to exclusive content, perks or VIP access. Usually, for premium content, a one-time payment is implemented.

Corporate or Group accounts

This model offers multiple access to users under the same entity (company or college). Often eLearning platforms give bulk discounts based on the number of members listed. Thus, learners from a company are enrolled in a single course, interacting with one another.

Freemium

In this business model, eLearning platforms offer users free training or limited features but charge for additional features. For example, some offer free courses but to receive a completion certificate, the users will have to pay an amount. Some learning platforms instead provide paid feedback, mentoring or final exams. In such cases platform charges for the things most valuable to a user.

Charging commission from Authors

For hosting a trainer or coach’s premium content on your platform, a commission is set. This charge varies with the course’s popularity, pricing, subject, trainer expertise and more.

Online advertising or Ad-supported learning

If you have many daily visitors on your website, you can use video ads or web banners. You can inject them via Video Ad Network-specific Javascripts with customization of your choice.

At advertising spots, you can even display educational videos or ebooks. These advertisements may distract the visitors from taking your site seriously. Content on such platforms is often free, and the revenue is generated through advertising or affiliate partnerships.

Note: Do keep your premium hosted videos secure from piracy using DRM solutions by platforms like VdoCipher. This will also help you in creating multiple encrypted copies of your videos for global distribution via CDN and different bandwidth supported bitrates.

OTT Platform Video Monetization

In recent years, there has been a massive shift of viewers from traditional broadcasting services to Video On Demand (VOD) platforms and OTT networks. For broadcasters and streamed video content, there are three monetization business models to choose from, namely, SVOD, AVOD and TVOD for your video monetization platform.

Subscription Video On Demand (SVOD)

With SVOD, users pay a recurring monthly or annual fee to get unlimited access to a platforms video content library. A very popular example of SVOD is Netflix. Users pay monthly to access the complete video content whenever and wherever they choose and when they stop paying, the access is revoked. Therefore, SVOD is one of the most profitable monetization models as these platforms generate recurring revenues as long as users enjoy their video content. In addition, viewers can watch different types of video content without annoying video ads by opting for one easy recurring payment.

In the first quarter of 2021, Netflix had 207.64 million paid subscribers globally, with 73.95 million coming from the United States and Canada. Popular streaming service Hulu reported 42.8 million paid subscribers in the third quarter of 2021 compared to 35.2 million in the previous fiscal year. According to Statista, the revenue from SVOD is projected to cross US$71,506m by 2021.

Transactional Video On Demand (TVOD)

TVOD or transactional video on demand is another method to monetize your videos. In this model, consumers purchase content on pay-per-view or pay-per-video or pay-per-series. In other words, the audience pays upfront for each watched video or digitally downloadable video content. TVOD is offered in two ways. One is by granting users lifetime access to a piece of content with a one-time payment (electronic sell-through (EST)). Other is download to rent (DTR), where customers can access a selection of content for a limited time by paying a smaller fee.

Common examples of TVOD include Google Play, Amazon Prime Video and Apple’s iTunes. Although the TVOD model seems restrictive, it can be highly profitable. In 2020, TVOD had a substantial holding as most films were released through this method due to cinema halls being shut. Recently BookMyShow ventured into the TVOD model with BookMyShow Stream, where users have to only pay for the content they watch. TVOD is designed for a larger audience who is not consistent and interested in only paying for the content they watch. There is no joining fee, and anyone can buy the content.

TVOD platforms generate higher revenue per viewer by timely offering consumers live sports and fresh releases. However, TVOD is not just restricted to entertainment and is now making a way in the education sector. TVOD is a great model for students who want to enrol in individual courses offered by the eLearning platform and learn at their own pace. Udemy, Coursera are some of the popular TVOD eLearning platforms.

Image source: Statista

Advertising Video On Demand (AVOD)

AVOD is free to consumers, unlike SVOD and TVOD monetization models. AVOD is a sponsorship model where the advertisers put their ads in front of the audience. Here, the viewers have to watch ads in order to watch the free video content. Here, YouTube is a classic example. You are often presented with an advert commercial at the beginning or somewhere within the video on YouTube. More the people view or interact with the video adverts, the more profitable they are. In such a case, creators who have a large audience base have more potential to earn money from videos. With more users preferring an ad-free experience and all the ad blockers around, AVOD is considered inferior to other monetization models. As a result, premium content creators rarely use AVOD as it generates lower revenue than SVOD and TVOD

Make Sure You Don’t Lose Your Revenue To Piracy

So far you’ve come across different ways to monetize your videos in this blog. But one thing as crucial as monetizing your videos is protecting them from piracy.

As the video platforms continue to grow, so does the piracy associated with them. Annually platforms lose up to billions of dollars in revenue. So it is quite imperative that you make sure that make certain preparation against piracy. After all, money saved is money earned.

In order to protect your videos from piracy, you need to ensure that your videos have DRM encryption, which saves your videos from any sort of downloads. Thus protecting you from any loss in revenue due to piracy.

This is where Vdocipher plays a big part, we know how much effort a content creator puts into their work. This is what we value and in order to get them the right return for their effort, we make constant efforts on our end to make sure that these videos don’t get downloaded. Our key security features include Hollywood grade video DRM, Dynamic watermarking, and screen recording protection on Android and iOS. On top of it, you can put restrictions on video playback in terms of IP, Geo & Time Based, giving you absolute control over who watches the video, where they watch it and how many times.

FAQs:

What if someone’s YouTube’s channel is rejected for monetization?

In case of rejection, one can re-apply after 30 days of rejection email.

Can videos be uploaded directly from a device on Patreon?

Patreon does not directly host video content on its website. Before posting on Patreon, one needs to upload on video hosting sites like Vdocipher, YouTube or Vimeo.

Which are the most popular AVOD services in America?

According to Statista in the 2nd quarter of 2021, Facebook Watch is the most popular ad-supported VOD. Further leading is Ruku Channel, Peacock, Tubi TV and more.

What are the different methods to monetize live streams?

Pay-Per-View (PPV), play ads, sponsorships, donations, subscription-based model, companion ads or banners.

Vishal Sharma

My expertise focuses on DRM encryption, CDN technologies, and streamlining marketing campaigns to drive engagement and growth. At VdoCipher, I’ve significantly enhanced digital experiences and contributed to in-depth technical discussions in the eLearning, Media, and Security sectors, showcasing a commitment to innovation and excellence in the digital landscape.

The post How to do Video Monetization on your Website OTT or eLearning platform appeared first on VdoCipher Blog.