If you have any doubt regarding the power of video streaming, then just have a glimpse at the figures of Netflix to know the power of this medium. Video on demand is quickly gaining momentum and surpassing all other traditional media outlets. It offers the business a chance to monetize their online video content. From movies to sports videos, the variety of video content continues to grow.
In this blog, we will be talking about the key factors to run a successful video on demand business. Let’s get started.
Business model to choose for your video on demand service
Video on demand is the future of the entertainment industry and all market players are investing heavily in video streaming applications. If you are one among them, before learning about how to start a video on demand business, it is important to know about the business model of streaming platforms like Netflix. Like every other new competitor, if you have unique content to offer and the features to stand strong among other popular streaming platforms like Netflix, then definitely the audience will come in.
Once you have everything in place, the next thing is to decide upon a business model or plan how to monetize your video content. Most importantly, if you are choosing a video streaming solution to develop your own platform, for example, a Netflix clone script, ensure it supports the revenue models you choose. There are customizable options out there that support hybrid monetization as well.
Here are some of the common types of video streaming monetization models.
Subscription video on demand model (SVOD):
SVOD business models allow you to give access to your users via a subscription plan. The plan can be monthly, quarterly, or on a yearly basis and must give unlimited access to the video library, HD quality streaming, and other value-added services for users. Netflix follows an SVOD model to monetize its content. You can also offer a trial version so that users can actually try the product and make buying decisions.
Transactional video on demand (TVOD)
Some video streaming services allow restricted access to the video content via a pay per view model, which allows them to purchase a specific content and gain unlimited access to it. This is transactional VOD model, and it works great for content like concerts, live sports, etc. Some popular examples include Sky movies box office and Apple’s iTunes.
Advertisement video-on-demand (AVOD)
AVOD is one of the most common business models followed by new businesses that launch their video streaming service for the first time. This works best to build and grow your audience base. YouTube primarily works on this model along with paid subscriptions and other methods.