how ott platforms make money

How Does the OTT Platform Work and Earn Money?

Statista revealed, by 2022, the VOD section of the OTT business will be subjected to a growth of  275.30 billion. OTT business is gaining popularity as we see multiple OTT platform business models coming up. A good OTT business plan will maximize revenue and tap more user attention if used correctly. Unfortunately, not many OTT businesses retain their brand for long due to the common issues of not being able to generate revenue or drive the business forward. Thus if you are an OTT business owner or are looking to enter the OTT business, this blog covers everything you need to know about the OTT revenue model, how OTT platforms earn money, etc. 

What Is An OTT Business Model?

OTT (Over The Top) refers to streaming services being provided to users via the internet. Users can conveniently stream VOD content anywhere and anytime with good internet. With OTT platforms, users access an unlimited range of VOD content for a fee. 

Top 4 Benefits An OTT Platform Offers 

1. Provide Unlimited Content

The best part about an OTT business is OTT business owners offer a range of VOD content for users to choose from. This form of VOD content is not limited to local content; users can access global content accordingly. 

Since multiple contents are available at the user’s fingertips, they can stream the same anytime, anywhere without having to wait for a particular schedule. 

2. Fresh Content

As stated earlier, users access fresher content and are no longer limited to the regional content library. For instance, you can stream American content to users sitting in India conveniently. 

OTT business owners can offer this wide variety of content options to drive more user attention and increase revenue. 

3. No Limitations On Devices

Another great factor about the OTT platform is the ability to allow your users to stream VOD content on any device. For instance, users can access your OTT platform via laptops, computers, desktops, smart TVs, etc. 

This simple convenience is one of the top reasons users depend on OTT platforms to stream their VOD content. 

4. Offer a Personalized Viewing Experience 

Another reason how the OTT platform can benefit your brand is the ability to drive revenue constantly. As business owners, with data or analytics, owners can identify each user’s viewing habits, such as what they stream more when they renew their payments, etc. 

This can help you offer personalized services such as discounts or a payment to access exclusive content, etc. By doing this regularly, you will be able to retain your existing users and tap the attention of new ones as well. 

How OTT Platforms Make Money?

1. Video Advertising Networks

Video advertising networks (VAN) are one of the quickest ways to generate money from your OTT space. There are multiple marketers who are looking for places where they can exhibit their ads. Thus, VANs act as the mediator and help marketers find OTT businesses that are most likely to do so. 

The only drawback here is from your OTT space; your users will see ads that are not relevant. While this isn’t the right practice, business owners tend to earn more. 

2. Conduct Direct Advertising

The next way to generate revenue from OTT spaces is via direct advertising. This means business owners can choose what ads they wish to show their users. This approach to good advertising is highly accepted. 

3. Sponsorships

Sponsorships are another great way to drive revenue from your OTT business. To display any of the sponsorship ads, you can charge a good fee for the same. You even can decide where you wish to exhibit this ad as well. 

4. Monetization Models

Lastly, there are multiple other ways where you can drive revenue as well. The popular ones are:

  • SVOD

SVOD (Subscription-based) model allows users to access VOD content on a weekly, monthly or yearly payment plan. Users can renew their SVOD models once completed. 

  • AVOD

AVOD (Advertising-based) model allows OTT business owners to charge advertisers a fee for placing ads on your VOD content. The ads can be stitched to the content to ensure users access the same. 

  • TVOD

TVOD (Transactional-based) model also known as the pay-per-view model allows users to access specific content only when a fee has been paid for the same. It works well when users try to access exclusive content from your video streaming platform

  • Hybrid Model

The hybrid model is a combination of the SVOD and TVOD models. Business owners can use both these payment plans accordingly based on the users viewing habits. For instance, to access the latest movies, the TVOD payment plan works, to access normal content, the SVOD payment plan works. 

Which Is The Best OTT Revenue Model?

This choice varies from one OTT business to another. OTT business owners should experiment and see which OTT revenue model works for them. Based on this choice, will an OTT revenue model be decided? 


Creating an OTT business model requires work and effort. Today multiple OTT platform competitors are crushing the poor performers and moving forward. Now that you have the knowledge about OTT monetization models and how OTT will get money, it’s time to set up your OTT business. 

To get started, investing in an OTT video platform provider is advised. They can help you set up your platform quicker and enhance it further with the right features. So, how are you planning to conduct your OTT platform business model?

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