3 Content Monetization Models On Demand

By Media Entertainment Tech Outlook | Wednesday, September 16, 2020

3 Content Monetization Models On Demand

As the information age is making content the leading online resource, more and more OTT companies are looking for creative new sources to maximize the investment return.

FERMONT, CA: Advancements in technology have made 'anywhere-anytime' an absolute and scalable reality. With the rise of Over-The-Top (OTT) platforms, the On-Demand services like Video-On-Demand, are being at the forefront of disruption in the media sector. In addition, the tech disruptions have transformed the value drivers throughout the chain of production, aggregation and distribution, with the reach of customers and satisfaction becoming the Holy Grail. OTT entrepreneurs are experimenting with various monetization models, subscription and advertising-based being the most common. Customer willingness to pay for content was once hindered by rampant content piracy, but now, a paradigm shift is being observed in the consumer attitude in recent times. This is due to the different groundbreaking on-demand content monetization models implemented by OTT players. Some of them are briefly discussed here.   

Subscription Models

Content service providers aim to get the maximum value out of their subscription strategies by developing their content delivery system in terms of premium content that can be a niche, and the customer can pay for and watch the content of interest. These have options for the regular, weekly, quarterly, and long-term payment of subscriptions. Entrepreneurs are finding the sweet spot price for the value they give to increase the profits. Selling content by subscription is getting harder for newspapers, and publishers must figure out how to mitigate disruption from news aggregator applications. 

Ad-Supported Models

Many steps are being taken to maximize revenue per hour of use for ad-supported models. By data analytics, media players are trying to exploit the wealth of data they have accumulated and increase ad revenue by targeted ads. The companies are building partnerships and associations to acquire new customers wherever they can up-sell or cross-sell. Sustainability of operations will be the main success factor in deciding the path the industry takes with increasing competition.

Microtransactions

Microtransactions serve as pay-to-play (streaming content, time-limited access to content or applications) or pay-to-own (downloading a song, video, post, picture, etc.) This model predates the modern use of the Internet: pay-per-view movies, arcade games and sports. The question remains whether this model will work for news and magazine articles, which are typically one-time reads, where music and video track downloads are more attention-catching.

This rise in digital media can be attributed to the advancement in the technology of mobile devices and the internet, which provides audiences with the ability to access digital media content on the go. The returns on investment in the delivery of technologies and robust business models have been consistently proving to be a worthwhile and appropriate investment in the digital media content industry. Examining the process for digital content management includes the ability to distribute media resources across channels for consumption. Media companies can integrate several options to manage content, allow reliable and seamless delivery, and use capital to optimize monetization. Such models provide a starting point for a tactical and competitive advantage to be built and maintained.