How to Make Money From OTT Platforms and Video On Demand

As a business or selling professional, when consumer dress reform, you must pay attention. Perhaps nothing is changing more rapidly or drastically than how people consume video content.

To leverage this change, you must first understand two of the most common video consumption methods: video on ask( VOD) and over-the-top( OTT ). We blanket both in this guide.

What Is Video on Demand( VOD )?

Video on require( VOD) is a technology allowing viewers to watch video material when and where they demand and the sound of a button or sounds on a touchscreen.

VOD is also favourite because you can pause, rewind, or fast-forward content–and, unlike DVDs, you can easily start an escapade from the moment you stopped it rather than searching through a menu.

In short, it contributes spectators complete control of what they consume and how they want to consume it.

One of the most popular VOD business is Netflix, which started as a DVD mailing service and retained ahead of the game by adopting streaming early.

VOD - Netflix

What Is OTT?

Over-the-top( OTT) is a way of stream video and film material over the internet at the user’s request.

The primary rationalization for this unusual name, over-the-top, is because it becomes over the tops of traditional media distribution channels and disperses content immediately to the consumer via an internet connection.

OTT platforms were realized favourite by streaming services like Amazon Prime Video, Hulu, YouTube, and more.

VOD Vs. OTT–What’s the Difference?

One of the primary divergences is the medium through which video content is delivered.

VOD: Video on challenge involves depleting any media content that isn’t played on a certain schedule or is in need of physical DVD, tape, etc.OTT: This is strictly streamed content , not downloaded or otherwise placed offline, and can include media like videos and online radio programs, such as podcasts.

The other great difference is VOD can’t be live content, while OTT can, as VOD by definition can’t have a determined planned involved. Nonetheless, live content can later become VOD if it’s allowed to stay online for future viewing.

OTT is often VOD, but not ever, and vice versa. As you may have guessed, many platforms, like YouTube, are categorized under both VOD and OTT.

Are VOD and OTT Right for Me?

If you’re willing to put in the hard work to create a high volume of quality on-demand content, you may be wondering if VOD or OTT is right for you. Bearing in mind there is overlap between the two, here are some pros of each option to help you determine which best suits your needs.

Pros of VOD

VOD enables you to deliver on-demand content to users, which is incredibly popular among shoppers. As a arise, you could monetize your label faster and easier via VOD.

This method is best suited to subscription-based organizations. For example, fitness instructs can use VOD platforms to offer monthly subscriptions for on-demand fitness first-class.

VOD likewise working well for brands wanting to leverage sponsorship deals–more on these monetization methods in a moment.

However, to make money from VOD, you must have a large, high-quality content library, so make sure you have a team able to handle this workload.

Pros of OTT

OTT’s strength lies in utilizing the internet, developing in OTT platforms being able to offer both video-on-demand services and live streaming. This is essential for labels that rely on live happens in their business model. A good example is Wanderlust Tv 😛 TAGEND

VOD - Wanderlust example

If live episodes are part of your sell mix, OTT is the way to go for you and your brand.

How Do I Compile Money With VOD and OTT Platforms?

As a marketer, you may be wondering how to use VOD and OTT to bring in revenue. There are several ways you can profit from your video material.

Monetizing OTT Advertising

To get started with OTT advertising, you need 😛 TAGEND

The right technology: You can use third-party tools like Google Ads or have a custom solution developed to suit your specific OTT advertising needs. An public: OTT advertising hinges on a large audience as advertisers frequently pay on a cost per mille( CPM) basis.Data: Data on your audience demographicsis essential to helping advertisers decide whether your scaffold will provide them with a health return on advertising expend( ROAS ).

You have three options to monetize your OTT platform: video advertise networks, direct pushing, and scholarship deals.

1. Video Advertising Networks

One of the fastest ways to generate revenue from your OTT is to join a video ad system( VAN ). VANs connect “youre going to” marketers looking for ad space.

The major drawback to VANs is you lose control of the type of ads appearing on your platform–if something offensive continues, your public may blame you. However, VANs are handy as you don’t have to find advertisers on your own, so be sure to fully research any VAN you consider and predict the fine print before signing.

2. Direct Advertising

Direct advertising allows you to take control of the types of ads you display on your OTT platform. To do this, you must develop a custom ad server to control the ads you display on your platform.

Going the direct advertising road means you’ll have to find advertisers, negotiate with them immediately, and gave your proportions. It’s a lot of work both on the business and development features. However, you may get better returns as there’s no middleman.

3. Sponsorship Deals

Just as in the days of television, OTT sponsorship slews involve a firebrand paying for the right to advertise on a particular piece of content.

There are many ways to deliver your patronized messaging. For instance, you can weave it into your material, prove it as banner ads, or display it on launch screens.

An advantage of sponsorship copes is they can simplify your ad spin because you only have to serve a few sponsoring labels. However, that can prove costly should any choose to end their sponsorship.

Monetizing VOD

Just like OTT advertising, you have three main options for monetizing VOD content: subscription video on requirement( SVOD ), transactional video on expect( TVOD ), and ad-supported video on necessitate( AVOD ).

1. Subscription Video on Demand( SVOD)

Subscription video on demand( SVOD) is one of the most popular ways of monetizing a VOD platform.

The SVOD model manipulates by going useds to pay a repeat reward to access your content.

VOD - Showmax

SVOD is often one of the most profitable ways of generating a steady flood of income from your stage as long as you have content parties are willing to pay for.

Luckily, research depicts the estimated revenue and usage of SVOD are expected to continue developing for the foreseeable future.

With SVOD, you can create different access levels at various price stages, fixing your VOD content available to a wider audience.

2. Transactional Video on Demand( TVOD)

Transactional video on involve( TVOD) is a monetization method allowing users to access content on a pay-per-view basis.

You have two main ways to offer TVOD to your patrons, namely 😛 TAGEND

buying permanent access to a piece of content with a one-time payment, like we used to do with DVDsrenting a piece of content at a lower costs than the purchase but with a limited access period

According to Statista, income in the TVOD market is growing and expected to reach $ 12,150 million by 2025.

With a dollar sum like that, TVOD may be an enticing option.

3. Ad-supported Video on Demand( AVOD)

Another excellent way to monetize your VOD platform is the ad-supported video on ask( AVOD) model.

Unlike SVOD and TVOD, where consumers pay to view your material, the AVOD model produces revenue solely from advertisers. Your useds don’t pay a dime. Because of this, such programmes tend to attract massive audiences.

How does this work?

Advertisers pay to place ads in your video series. Instead of compensating to watch your content, sees ascertain a few ads as they stream your video content. A popular illustration of this is the free explanation of YouTube.

VOD - heat map tool

The AVOD model gives you two options 😛 TAGEND

signing up for video ad networksdirect publicizing

Of course, the more onlookers you have, the more likely you are to find advertisers.

What Platforms are Best for VOD and OTT?

Ready to launch your VOD services?

Not so fast.

You need a VOD hosting platform first. With so many of them accessible, opt one can be a daunting task. Besides, if you don’t know what you’re doing, you may sign up for a programme that won’t meet your needs.

Here are a few programmes to consider.

1. Uscreen

One of the biggest actors in the VOD hosting platform gap is Uscreen. The stage is one of the most economical, enabling even small businesses to use their services. For $49 per month, you get access to marketing tools, video hosting services, pricing restrict, and more.

2. Dacast

Dacast is a streaming solution offering both VOD and OTT functionality. Best suited for endeavour businesses and professional use, they stipulate hosting for high-quality video programs and live stream. A few of their remarkable features include video monetization, robust defence, and API integratings. Schedules start as low-toned as $39 per month.

3. IBM Cloud Video

IBM Cloud Video offers an expansive piece established, constituting it easy to tailor everything to your needs. However, because it has tons of peculiarities, it can be challenging to navigate. That fixes it best suited for businesses with expert broadcasters on their crew. IBM Cloud Video moves at higher rate tops than the last two options, with their starter proposal coming in at $99/ month.

Of course, these aren’t the only three out there. In addition to some of the big-name platforms we’ve mentioned, others you can consider include 😛 TAGEND


Because the industry is growing fast, you can expect brand-new actors to come on the situation.


With the freedom material, audience, and monetization policies, VOD and OTT content have the potential to grow your income hugely.

Are you interested in creating a VOD/ OTT policy but don’t know where to start? If so, can help. Our agency also offers works like email commerce, SEO, content sell, and paid announce.

Have you ever used VOD or OTT to generate revenue? If so, what was your experience?

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