The best OTT monetisation strategies you need to know

What’s the secret to turning your white-label OTT platform into a consistent revenue powerhouse?

With countless streaming services (free ones as well) vying for viewers’ attention, it is a tough nut to crack. Launching a platform isn’t enough. You need a smart, upfront OTT monetisation strategy that will keep your audience engaged and generate revenue.

This article uncovers the most effective OTT monetisation strategies tailored for white-label streaming platforms. You receive a plan to make the most of streaming services and start using the best monatization strategies for your niche content.

What is an OTT platform?

OTT services deliver video content to the target audience. These streaming platforms are based on the internet and allow users to access engaging video content wherever they are, as long as they are online.

From the content provider’s point of view, OTT streaming services offer various revenue streams, such as subscription-based models, OTT ads, or pay-per-view. They can also give the audience free access or offer solely premium content as subscription video on demand.

Over-the-top (OTT) providers like Netflix or Disney+ are forecast to increase by 10.4 percentage points between 2024 and 2029.

What are the benefits of OTT services?

Perks of OTT platforms for providers:

• Cost-effectiveness. Unlike traditional cable or satellite TV subscriptions, OTT services often give more affordable access to a wide range of content. Users can get to OTT content thanks to monthly subscriptions or transactional video on demand (VOD). There are also OTT ads that are another example of revenue streams for content providers.
• Data collection. OTT streaming platforms help providers gather data and thus boos their content strategies and revenue generation actions. These services offer analytics for user behavior, ad impressions, ad targeting and even valuable insights on audience engagement.
• Freedom and scalability. You can brand the platforms as you want to give a coherent UX. Moreover, you can deliver content no matter how big your audience is. OTT providers deliver needed infrastructure and support.

Benefits for users:

• Direct and on-demand access. Users may get video content as long as they are online. Many content providers offer free access as the platforms are ad-supported and give exclusive content through OTT monetisation models. Moreover, from the user’s perspective, OTT streaming services are usually cheaper, and there is no need to sign a long-term contract (mostly).
• Personalisation and diversity. There are a lot of content recommendations based on viewing habits that improve user satisfaction. Moreover, such a service offers access to a wide variety of global and niche OTT content. It may include originals, classics, and international shows.

If you want to check firsthand how OTT works, check Better Media Suite. A white-label service where you can create a branded streaming platform and share your content with your audience.

Monetisation models for white-label OTT platforms

There are various business models when it comes to effective monetization strategies in streaming videos. Below you can find an overview of four OTT monetization ways.

Subscription Video on Demand (SVOD)

Advertising Video on Demand (AVOD)

This monetization model is about content offered to users for free, but in exchange for viewing advertisements. These video streaming services are ad-supported, which means even for short-form content, users have to watch ads. This is one of the licensing agreements.

How it works

Users can access a wide range of content without paying any upfront fees. But these streaming platform integrates advertisements into the viewing experience. And choose the most suitable ones from the ad inventory. These ads can appear before (pre-roll), during (mid-roll), or after (post-roll) the relevant content.

Monetization model

Here, OTT service provider has to take into consideration the sale of ad space. Streaming video may be supported by various OTT advertising pricing.

• Cost Per Click (CPC). Advertisers pay only when a user clicks on their ad. This is more focused on driving traffic to a specific landing page, or for example, a social media account.
• Cost Per Action (CPA). Here, the content creator pays, when a user completes a specific action, like making a purchase, after seeing the ad-supported video.
• Cost Per View (CPV). Specifically for video ads, advertisers pay each time their video ad is viewed for a certain duration.

Examples of AVOD: YouTube, Roku, Amazon Freevee

Transactional VOD (TVOD)

TVOD relies on a pay-per-view system. Users contribute a one-time fee to access a specific piece of video content. It usually does not contain ads, but sometimes, OTT platforms allow pre-rolls or trailers before premium content.

How it works

First, users browse a catalogue of the platform. If they find any engaging content they want to watch, they pay a one-time fee to either rent or buy. There are different viewer preferences, some may want to watch now and forget about the title (rent preferers), some want to retain the option for later (buy preferers). Both would find TVOD useful.

Monetization model

There are several monetization strategies here.

• Electronic Sell-Through (EST) / Download to Own (DTO) – the user pays a one-time fee for permanent access to the content.
• Download to Rent (DTR) – the user pays a lower one-time price to access content for a limited time, e.g., 24h, 7 days, etc.
• Pay-Per-View (PPV) – the user pays a fee to access premium content like live broadcasts. Often used for live events like sports competitions, concerts, or special entertainment events.

Examples of TVOD: Amazon Prime Video, Apple TV, Fandango at Home

Hybrid monetization models in OTT

You can mix the above monetization strategies. Many platforms benefit from this approach and tailor them to target and its needs. For example:

Freemium

Offering a basic level of content for free (usually ad-supported) while providing premium, ad-free content or additional features through a subscription. Platforms like Spotify and some gaming apps utilize this model (League of Legends, Candy Crush Saga).

Subscription + TVOD

Combining a subscription service with the option to rent or buy new release movies or special events that are not included in the standard subscription catalogue. Amazon Prime Video is an example here. The platform offers a wide range of content with Prime, but also allows users to rent or purchase additional titles.

Subscription + AVOD

In these OTT monetization models, licensing agreements may contain two conditions: a lower-priced tier includes advertisements, or the more expensive tier is ad-free. Need examples? Hulu and Netflix employ this strategy.

Why are hybrid OTT monetization models worth trying?

More options mean a wider audience to attract. By offering a mix of free, subscription, and transactional models, you lower the entrance barrier. Users who are hesitant to commit for a longer time can sample your video through free, ad-supported options. If they enjoy it, they might then be willing to subscribe or pay for specific premium content. This broadens your initial reach, boosts brand awareness and ultimately may help you to build a strong position on the market

If you want to give various monetization strategies a try, check Better Media Suite. You can adapt your monetization process and test which solution generates revenue at a satisfactory level.

Key factors for OTT platforms monetisation strategy to suceed

Learn about your target audience

Your OTT content strategy should start with an audience analysis. Ask yourself, do you know who they are?

Once you learn about your users, you should learn about their habits and preferences.

For example, younger people like Gen Z prefer to binge-watch. So if you release one season at once, you may be sure, they will be loyal subscribers. On the other hand, Millennials might be price-sensitive. Over 20% of them admit they find OTT platforms rather expensive.

Offer high-quality content

Before you start targeted advertising and counting ad revenue, take a step back. What is your offer? Set key performance indicators for your content and check if it performs well. Monetization strategies works if you give value to your audience. Otherwise, there may be no coins to count.

Premium, exclusive, and engaging content attracts and retains subscribers, while ad-supported content benefits from high viewership.

So, before you start creating your advertising strategies, take a deep breath and analyse what and to whom you deliver. People won’t come back after a long advertising video if the original content is not good enough.

Ensure seamless use experience

Start with an intuitive and simple user interface, provide understandable licensing agreements and be precise with your OTT content. Provide a playlist, categories and integrate your platform with 3rd parties like multi-currency payment gateways. This will simplify subscriptions and purchases globally and boost your revenue potential. Do not forget about mobile devices; these allow your users to watch your OTT content wherever they are.

Profit from data

No matter if you consider ad-supported models, subscription or hybrid ones, analyse your audience. Check how your OTT content performs, follow your ad revenue and monitor ad inventory. Many streaming companies test monatization models to maximise revenue and keep their audience engaged.

Ensure security, scalability, and compliance

Integrate secure payment gateways, DRM systems, and robust 2fa authentication to protect user data and content rights.

Plan for scalability so your platform can grow with your audience and handle surges in demand without performance issues.

If you stream some other creators’ content, keep the legal aspects up-to-date. Remember about fixed license fee, revenue sharing agreement, etc.

Better Media Suite covers all of the security aspects of both your and your audience’s data. So if you want to have it done and rest easily, rely on the professional provider.

OTT monetization strategies – key takeaways

If you want to generate revenue, you need to keep your fingers on the pulse. The market is changing, and the audience preferences are shifting as well.

Your OTT content should follow not only trends but foremost audience preferences and needs. To maximise revenue and build long relationships with your users, deliver high-quality content and provide special offers.

Remember to test your OTT advertising and mix formats from the ad inventory. Use hybrid models to monitor user preferences and needs.

Competitors’ research is always a big help, so follow them. If a new solution appears on the market, first check the market sentiment and kick some tires before you implement it on your platform.

Summing up

Monetising a white-label OTT platform effectively requires, first, choosing the right model or combination of models. Subscriptions (SVOD), advertising (AVOD), transaction (TVOD), or hybrid approaches, select which one aligns with your content and audience preferences. Do not forget about your limitations, such as tech stack or know-how.

The comparison above gives you an overview of monetisation options. You need to evaluate your offer, your needs, as well as your audiences, and check which one aligns with them the most.

If you want to try an OTT platform and examine which monetisation model may suit you best, take a look at Better Media Suite. You can create your own branded streaming platform and generate high revenue by delivering your audience high-quality content.