OTT Media Monetization
OTT Media Monetization
OTT Media Monetization
Media Billing
• Introduction • Monetization models
• Classification • Business Case
• Functional Model • Feature List
• B2B2C Relation
• Players
Introduction
•AVOD
•TVOD
•SVOD
•HYBIRD
•Product
TVOD
• TVOD model is quite straight forward. Standing for Transactional Video on Demand, in TVOD, businesses
charge users for every single watch, every single time. It is also known by other names such as PPV (Pay Per
View) or PPD (Pay Per Download).
• Advantages of TVOD – The Unique Selling Proposition of the TVOD model is immediacy. Consumers can
access, by renting or buying, movie and TV series much sooner after their general release on a TV broadcast.
• Disadvantages of TVOD – TVOD models have failed to capture the market and consumer confidence like
other revenue models have. With SVOD ( short for, subscription video on demand which we shall cover next)
providers rising in colossal popularity, they are actively working to close release windows and to sign
exclusive content deals. Stiff competition is stifling the growth of TVOD models. A survey by Mediabug in
2014 of UK online consumers reported that 21% of them had ever purchased a TV show or movie online.
• Examples – iTunes, Amazon Instant Go, VUDU, CinemaNow
AVOD
• AVOD stands for Advertising Video on Demand. In this model, streaming video is delivered as a free service
for end consumers. A prominent example of this service is YouTube.
• Advantages of AVOD:– AVOD offers a powerful advantage for businesses because of its free nature.
Customer acquisition costs are low compared to other models. Users can quickly sign up for the service,
often by just logging in with their Google or Social media accounts. The advertisements, often are sufficient
by themselves, to cover up for the production and hosting charges. Advertisers can utilize valuable consumer
demographic, geographic, psychographic and behavioral data points. Advertisers will be able to serve highly
personalized and targeted advertisements to their target audience. AVOD can also be bundled with the offer
for the consumer to upgrade their services by paying a monthly, quarterly or annual subscription amount.
• Disadvantages :They offer a poor user experience, and consumers have grown all too accustomed to
skipping ads online. An ad-based model might work for occasional users, but ads are likely to drive away
consumers who want more of your content or who are willing to pay a premium for a better user experience.
SVOD
• Short for subscription video on demand, SVOD models are the clear favorites among consumers. SVOD offers its users
access to an entire library of video content by simply signing up for a subscription (monthly/ quarterly, annual). It is
estimated that 3 in 4 US households have an SVOD service. And, the number of households with more than 1 SVOD
subscription is rising. Netflix is the leader of the pack, with Amazon Prime and HULU among other top OTT services.
Together with YouTube, these three services account for 79% of the total time spent viewing OTT in the US.
• Advantages of SVOD – The popularity of SVOD services is on an ever-upward trajectory. More than 64% of adults in the US
report using SVOD services monthly. And outside of the US, the subscriber base and popularity is increasing. They take up
huge chunks of bandwidth, and they are sinking physical media and broadcast TV businesses. Industry research shows that
SVOD delivers higher revenue per user. The ability to choose different tiers of subscription in SVOD is also very enticing for
customers.
• Disadvantages of SVOD – Well, not exactly a disadvantage, but a weakness is that their pricing tends to be inflexible. With
the increasing cost of content creation, this creates pressure on the profit margins for SVOD businesses.
• Examples – Netflix, Amazon Prime, HULU, Curiosity Stream, HBO Now
HYBIRD
• Hybrid Model – Hybrid models combine the best of worlds by bundling the
services in different ways. An example of how that might work out is when the
user signs up, he is provided with a library of content. The user can also choose to
opt-in for a paid pack to excess certain exclusive content. This paid pack can be
either in the Subscription or the Pay-Per-View model.
• Example – Hotstar
• Multi-Screen Model – Multi-screen models allow OTT providers the option to
their customers to subscribe to a service which enables them to access streaming
content on multiple devices so that they can watch anytime, anywhere.
OTT Product Plan
•
Business Cases
Content consumption
restriction Parental Account profile editing
Master/sub account Account blacklisting Device policy
control settings for (eg. address, mail,
profile management (eg. deny access) assignment
VOD and live (eg. PIN, phone)
level, extended ratings)
Commercial
User actions (eg.
package User profile VOD catalog
favorites,
purchasing (eg. attribute updates ingestion
rating,search)
SVOD)
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