When you create or own video content, it is a challenge to make money from it. With platforms, such as AudiencePlayer, you can choose from several options to make your videos profitable. These are called “monetization models“. What is the best model for your business? Subscription based video on demand, a pay per view video platform or something else?
The most familiar methods are explained in this blog. We also discuss the pros and cons of each monetization model.
Pay per view video platform (TVOD)
Pay per view videos are also called TVOD. This stands for “Transactional based Video on Demand”. With this structure, the user pays a certain amount to access your video content. Pay per view video can be divided into two subcategories:
TVOD based on rentals
A user pays for access to a video. They only get access for a certain period of time, they ‘rent’ the video online. Eye Filmmuseum uses this construction.
TVOD with unlimited playback
With unlimited playback, you can play your videos as long and as often as you want after purchase. Imagine: you are selling training courses, teaching videos, a master class or a one-off course. It is practical for the user to be able to replay the video. For example, if a user buys a one-off course “5 breathing techniques for more rest”, they probably want to use it for longer than one day.
For these types of videos, it is important that a video is always available, to make the offer more attractive.
TVOD is valuable to people who are not interested in all of your video content, but only want to watch one or a few videos. Examples of TVOD services are Pathé Thuis and MyLumTV.
Subscription based video on demand (SVOD)
The opposite of a pay per view video platform is subscription based video on demand. With this monetization model, customers pay periodically for your content. For example, do you offer yoga classes? Your customers will probably want to do exercises each day or week.
By offering your customers a subscription, a customer does not have to purchase a new video every time. You also bind customers to your video service for a longer period of time, compare it to a subscription to the gym!
Other Monetization Models
In addition to SVOD and TVOD, you can also think of credits and commercial breaks (AVOD). For a certain amount, a user can buy a number of credits that they can spend on videos of their choice. You can also offer your videos for free and fully rely on ad revenue. An example of this is YouTube.
Are you thinking about setting up your own video platform yourself? This is very easy with AudiencePlayer. Check out our homepage for the possibilities!