OTT Monetization: The Ultimate Guide to Select The Best Revenue Model

What are OTT Revenue Models?

i) Monetizing with Advertisements

ii) VOD Subscription based

iii) Transactional based content

iv) Hybrid (SVOD+TVOD+AVOD)

OTT vs VOD: What is the difference?

  • Streaming video on websites or apps like Netflix, Hulu, YouTube, DAZN, Sky Sports, etc.
  • Internet-connected devices like TVs (smart TVs) or devices like the Amazon Fire TV stick, Google Chromecast, or the insanely popular Roku streaming device.
  • Watching live TV using internet streaming: Popular examples are DirecTV, Sling TV, Hotstar (in India), and the list goes on.

What are the different types of VOD?


  • AVOD enables businesses to serve free content with ads to their customers across several inventory platforms such as connected TV, desktop, and mobile ecosystems.
  • The biggest advantage of AVOD is the possibility of finding new viewers without much effort. With little or no barrier to entry, viewers can get hooked on your content without hitting any hurdles. If you serve a niche demographic or interest group, you may be able to charge higher rates from advertisers enabling you to offer discounted prices to your customers.
  • AVOD provides very refined targeting opportunities with more precise data about audience interests than mere age and geo data.


  • The SVOD model used by Netflix is extremely popular and hence familiar among households. In fact, a 2019 report finds up to 75% of US households have an SVOD subscription.
  • It’s a very efficient model that creates steady income from every customer. SVOD is also associated with high revenue. Because consumers can pay an affordable fee to access the entire content library, many prefer these platforms.
  • It provides multiple subscription options to the user to pay weekly, monthly, quarterly, or annually at their convenience.


  • TVOD is a straightforward and simple model great for serving one-off video content. The power of choice given to consumers lets the businesses charge or offer discounts on the content piece accordingly. Consumers are more willing to pay for high quality content they intend to watch.
  • The most attractive reason why TVOD is a great choice is its immediacy. Consumers get access to desired content by renting or buying even sooner than after the general release of specific media content.
  • TVOD services enable businesses to retain customers with seasonal content. This strategy suits tutorials, lessons, sports, or other seasonal events. Sky Sports Box Office is a good example of TVOD platforms.


Hybrid VOD

What is OTT Advertising and its benefits?

5 benefits of OTT advertising

Which type of VOD is faring well in the current OTT market?

Best practices for OTT subscription billing

How OTT providers are implementing a hybrid VOD monetization model?

What are other content monetization opportunities available?

Live stream content pre-order

Crowdfunding & Donation

Theater and OTT collaboration

Content aggregation

End-user wallet

Restricted subscription access

Content creation processes

What is new in OTT?




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