How Streaming Services Make Money: Our Guide

Streaming services have revolutionized the way we consume media, allowing us to access content on demand. But how do these services generate revenue? Are you wondering how streaming services can make money? You have come to the right place. Our guide will take you through the basic information surrounding streaming services and how their revenue can be generated.

About OTT

Over The Top Content, or OTT are platforms where video media can be watched using the internet. As opposed to standard television channels, it allows users to access a variety of content through streaming services, allowing them to pick and choose what they want to watch at any given time. OTT services have become increasingly popular in recent years, as they offer a wide range of content for the viewer to choose from. It works using a technology called Content Delivery Network, or CDN, to transmit IP packets to ISP.

How Do OTT Platforms Generate Revenue?

There are various models that OTT platforms might use in order to generate revenue. One of them is Advertising Video On Demand, or AVOD. When an OTT platform uses this model, its users can access its content for free. However, they use ads to earn money. Subscription Video On Demand, or SVOD, on the other hand, is a model where the OTT platform's users have to subscribe to view its content. They will however not be facing any ads. There is also a hybrid option. This option allows for users to either view content for free with ads or pay for a subscription and have no ads. Finally, there is also Transaction Video On Demand, or TVOD. This offers a choice of two streaming options for users.

Other Ways to Stream Content

Now, it is possible to use live streaming to generate money without creating an OTT platform as well. Companies can, for example, live stream their business content on their own website as well as social channels. Instagram, Facebook, and YouTube are oftentimes used for this purpose. This allows audiences to view real-time content and ask any questions. Not only does this promote the company and its services or products, but these channels can also earn ad revenue if they meet certain criteria and are popular enough.

In fact, online video streaming is not business-exclusive. Individuals can also set-up their own accounts and live stream. Live streaming is also popular among the gaming community. YouTube and Twitch are often utilized for this purpose. If they meet the requirements and are popular, streamers can make money from ads, donations, sponsorships, and so forth.

These streaming services can make money from ads as well. Depending on the service, some may take a percentage of paid subscriptions, etc.

Conclusion

Over The Top Content, or OTT are platforms where video media can be watched using the internet. As opposed to standard television channels, it allows users to access a variety of content through streaming services. OTT services have become increasingly popular in recent years, as they offer a wide range of content for the viewer to choose from. There are a number of OTT platforms that allow users to watch content for free with ads or pay for a subscription and have no ads. There is also a hybrid version of this revenue model as well as the TVOD revenue model.

There are other platforms that can be used for streaming too. Those include Instagram, Facebook, Twitch, YouTube, etc. These mostly make revenue from ads. Some of them also take a percentage from paid subscriptions, etc.