Transaction-based (TVOD), ad-supported (AVOD), subscriber-based (SVOD), or create a hybrid monetization model that blends the best of all.

The business of video on demand (VOD) is all about making your destination and content offerings relevant and valuable to each consumer. That’s a tall order in an industry that operates in a climate of unprecedented levels of customer choice, competition, and complexity of delivery. Success comes through creating a relationship with audiences that evolves right along with them.

FLEXIBILITY IS KEY TO LONG-TERM HEALTH

Providers and advertisers will continue to come up with new ways to monetize; but the only real constant in the equation is the need to move your service and your audience into a more meaningful dialogue with each other. Monetization strategies need to demonstrate a keen awareness of where your service sits on each viewer’s priority list – and respond accordingly. They also need a clear understanding of the service’s fundamental goals:

  • Does your long-term strategy hinge on gaining a rapid ROI?
  • Are you opening up an SVOD destination as a way to expand viewership, or to establish a new delivery platform?
  • Does your operating capital provide the flexibility for heavy experimentation with introductory pricing?

There are currently three primary OTT monetization models, each with their own challenges. Keeping engagement high and churn low is an obvious and constant assumption across the board.

VOD 2.0 – A “BLENDED FAMILY” OF XVOD MONETIZATION MODELS

A mature OTT monetization strategy will likely emphasize one of the above “big three” models, but a creative hybrid approach can really pay off, too. Strong content is an awesome revenue generator that can hold up to some interesting new combinations.

  • Subscribers might be fine with the judicious use of advertising in some instances.
  • TVOD has demonstrated value as an effective first-tier relationship that segues into an SVOD subscription with a more reliable revenue stream.
  • Maybe your audience will respond to a hybrid “metered” approach where the lines between ad-supported and subscription are blurred, with access to a full content library with a subscription.

A successful monetization strategy is anything but static. It has to be built on a foundation that allows for scalable quality and highly informed trial-and-error. Comcast Technology Solutions provides a technology and process foundation with the flexibility to test and learn, and the agility to respond to changes in the market – all while keeping your focus on what matters most: lengthening and strengthening every audience relationship.

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