Gone are the days when we would wait to see our favorite programs on TV. It is the age of Video on demand (VOD) platforms where one can access all the content one’s heart desires with the swipe of a finger or a click of a remote. Not restricted to TV alone, the charm of streaming video spans across devices, be it a mobile screen or a laptop, or a television. Little wonder then that the chunk of the monetary pie lies in VOD solutions. Take for example these mind-boggling numbers!
- Revenue in the Video-on-Demand segment is projected to reach US$98,686m in 2022.
- The largest segment is Video Streaming (SVOD) with a market volume of US$82,431m in 2022.
If this has got you thinking of how exactly VOD makes money, read on. Without further ado, let us introduce you to what VOD platforms can do for you and 6 popular ways that VOD platforms earn money.
Choosing a VOD Solution: The Whys and The Hows
Before we go into ways to make money on VOD platforms, let’s take a quick look at why it is worth exploring them as a source of income. While VOD platforms have existed for a while (think YouTube, think Netflix), their popularity soared after the pandemic hit.
The video was consumed across various devices, be it laptops, computers, televisions, or mobile phones. Coupled with the internet being accessible for everyone, on any device, it was the perfect mix of circumstances for Video on Demand to take off.
This has been proven by the unprecedented success of platforms like Amazon Prime, Disney+, Netflix, Tik Tok, and a number of other VOD solutions.
Let us now look at 6 ways to ride the wave of VOD popularity.
6 most popular ways for VOD platforms to make money:
Creating a member-only app:
When you have got your audience hooked to your content, consumers will be inclined to pay to have access no matter what device they access your content on. Using an app that gives them exclusive membership privileges for a fee will help you bring in the money and also keep your audience engaged.
Charge for Premium Content:
This is a model that has worked very well for a lot of platforms. While casual surfers may be happy with whatever is on offer, serious consumers will pay money to access all the content you are dishing out. Whether it is more elaborate videos or episodes in a series or behind-the-scenes content, premium content will bring in paying members as well as increase the viewership base.
Social Media and Monetization:
It is the era of virtual connections and the power of Social Media cannot be ignored. The rise of apps like Tik Tok and Instagram Reels have made it easy for content creators to put out their content for the world to see and be paid for it too. If you are reaching out to consumers, use the power of social media to monetize your content.
Charge for Live Pay-per-view Access
Charging a fee for access to live sessions is the virtual equivalent of charging an entry fee to events. On one hand, this gives your audience to get a feel of interacting with your content one on one. On the other hand, it also gives you a new stream of income to cash in on. Not just that, it also brings a feeling of exclusivity and a unique experience to the consumers. This is also one of the ways for VoD platforms to make money.
Collaborate to Sell to other Broadcasters
When content becomes really popular, consumers will be willing to be looking to access it on other platforms too. You can cash in on this by selling your recorded content to other broadcasters for a fee. This becomes beneficial for both you and the broadcaster thereby opening up avenues for further collaboration and paid avenues too. The best VoD platforms have some common content. This is because the original content creator would have sold their content to multiple broadcasters.
Explore Branding and Sponsorships
With more and more people keen on personal recommendations rather than straight-up advertising, more and more brands are looking at collaborating with content creators to advertise their products. This can be in the form of video branding, it can be in the form of sponsored events or even a well-placed video collaboration where their products are placed strategically. The important thing is all of these are paid opportunities that give you a chance to monetize your videos.
If you had been wondering how VoD platforms make money, this article has hopefully shown you various popular avenues that are used to generate an income. With that bulb lit, jump on the burgeoning VoD market and start creating today!