How to Monetize Your OTT
So you’ve been creating and producing content for a while now. You’ve worked hard to build and grow your follower base and you’ve done a pretty good job at it. Awesome!
Or perhaps you’ve actually been inspired by these crazy times we’re living in, and realized that you can start your own streaming business. Besides having some content, you know that you will also need to build the actual service. And, uh, well, figure out how to make money off of it.
Monetization. The key word. Content is king and yes, I know you’ve heard it before. So the question is: How do I monetize all of this awesome content I have? Let’s explore a few alternatives.
1. Ads - Paid Advertising
Perhaps the most classic alternative. You offer a place where other businesses can reach new potential customers, and in exchange, they pay you for that. It’s the good and old publicity model that TV broadcasters and advertisers have known. Except that in the digital world, this is mostly done through banners and video ads.
This monetization model is very powerful due to its free nature as customer acquisition costs are significantly lower when compared to other models. Also, advertisers can tap into consumer data, such as geo and psychographic information, that help enhance your service as you personalize and better target your audiences.This model is a great way to attract potential customers, and then have them upgrade their services to a daily, weekly, monthly or even yearly subscription plan.
If you choose to monetize your content this way just be aware of the highly interruptive nature of this model. If not well managed, it can end up irritating your viewers.
At Nunchee.com working with ads like this is very simple. All you have to do is copy and paste a Google campaign ID or Bannersnack shareable link, pick where your banner goes and voila! We also support VAST and Google IMA video ads should you prefer that option.
2. Subscription
We all know this one. You pay a fee and you are then granted access to whatever the service has to offer for a certain amount of time. The famous subscription plan. I say famous because it’s a clear favorite among consumers.
The clear advantage of this model – besides the fact it is already largely known – is that users can take advantage of an entire library of video content. In the United States alone it is estimated that 3 in 4 households have some type of subscription video service. In 2019 alone official numbers accounted that 45% of U.S users actually subscribed to three or more paid video streaming services. And these are pre-pandemic numbers! Since it’s not possible to watch all your favorite content in a single platform, consumers will subscribe to multiple services at once in order to get access to the digital originals and licensed content available on each.
Lack of price flexibility may be an issue when it comes to this particular monetization model. And it creates pressure on profit margins. I suggest you research and get to know your audience well before defining your pricing strategy.
With Nunchee.com you can create as many subscription products as you wish, ranging from daily passes to yearly subscriptions, besides deciding whether to offer a free trial or not. You’re free to diversify your business model based on your audience needs.
3. Sponsorship
Athletes and brands are very familiar with sponsorships. Brands are always on the lookout; not just for new customers, but also for ambassadors and representatives that can help them carry out their message across a wide variety of potential buyers. So if you have a platform, chances are you can offer a place for brands to showcase their products.
Youtubers and influencers are very familiar with companies’ sponsorship posts, product placements or even good old ads before or during your content.
At Nunchee.com we strive to offer you the best tools to monetize your OTT business. This means you can create a fully subscription model with or without a free trial, or perhaps a freemium sort of business where you can acquire customers at a lower rate while offering some free content. And then of course, seduce them into a paid subscription. Your business, your rules!
In short, the options are out there and you must choose which path you’re going to take. But as a last piece of advice, before you decide on a strategy make sure you carefully consider your content, your target audience and your overall business strategy. If you have these three things clear, the monetization path shouldn’t be so hard to figure out.
