The demand to access the on-demand content online has led business owners or video content providers like you to get into the business of online movie streaming services.
An online source revealed, ‘’large majority of U.S. adults (71%) prefer to watch something at home over going out to watch a movie. Less than one-fourth (23%) prefer the opposite.’’
The pandemic impressions have created such an impression in the minds of millions of entertainment lovers. The rise of this platform spiked, ‘’The global video streaming market size values at $59.14 billion in 2021.’’
If you do this right, driving revenue from this platform alone will suffice. Thus to help you generate higher numbers, this blog covers all the essential information needed to help you get started on how to make money in a movie streaming app.
What is Movie Streaming?
Previously to view video content, physical spaces became the prime preference amongst entertainment buffs. Now that the pandemic changed the way this content is being viewed, online movie streaming apps became the next big thing.
In a span of a few months, movie streaming apps grew bigger and their demand is still growing with time. So what is video streaming? It refers to watching video-on-demand content via a streaming app. The best examples are Netflix, Hulu, and more.
These apps ensure that any kind of video content available on that platform can be easily accessed with a single sign-up.
Movie streaming is growing popular because of the convenience it provides in 2021. The ease a movie platform offers which is accessing any form of video content at the comfort of homes has brought a recognized technological solution that has a great future. So how to make money from your online video platform?
How To Generate Revenue From Movie Streaming Platforms?
AVOD stands for advertising video on demand. It is a popular way to generate revenue by placing ads during the video content being streamed.
The reason for its popularity is since many viewers prefer streaming movies online, the chances of them viewing ads are high. Thus the more views are collected, the better are the chances of those ads being considered.
- Higher chances of ads being viewed
- Higher views convert potential opportunities for sales
- Ads displayed need to be of great quality or they can hamper the user experience
- Exhibiting frequent ads can be annoying
SVOD refers to subscription video on demand.
To access any time of video content, SVOD users need to be a fee on the same. Once the fees are paid, viewers can access any content anytime they like without any hassle. Popular SVOD examples are Netflix, Hulu, etc.
- Viewers will pay for how long they wish to access content
- A price is being paid to watch an exclusive and diverse content
- Viewers are subscribing to multiple movie streaming platforms, thus if your platform is not providing great original content, then the churn rate can increase
- If viewers find cheaper content on some other platforms, they will immediately unsubscribe and leave thus it’s important to offer more to viewers on your platform
TVOD stands for transactional video on demand. Here TVOD functions on a pay-per-view basis.
Viewers can access content on a one-time view basis and pay only for this action.
- Viewers will only pay for the content they prefer to watch
- You get better stats on what type of audience access your content and can remarket to them better
- TVOD’s approach to movie streaming has no set future which means not many viewers would make use of such a style.
- Driving revenue via TVOD can be slower as based on the content preference, viewers will decide accordingly. Thus if more original content is not displayed, churn rates can spike.
PVOD stands for premium video on demand.
The purpose of this monetization model is to access exclusive content via a fee. This model is well accepted since entertainment lovers can access exclusive content immediately.
- Access to great content with no waiting time
- Great way to drive additional revenue
- Not many would pay an additional fee, they would prefer waiting
- If the content is not worth the money, then viewers might not find it reasonable to pay the fee
A hybrid model is a combination of all the above-listed monetization models. This is a great way to drive revenue as customizations can take place well. Hybrid models are a great approach to cater to all types of viewers that use your streaming platform.
- Customize monetization models accordingly. For instance, with SVOD, you can have a free trial and then add a fee to subscribe
- It Caters to different types of viewers instantly
- There can be possibilities where not all hybrid models will be used
Which Monetization Model Should You Choose For Your Movie Streaming Platform?
The choice to choose the right monetization model depends on the type of viewers you cater to. To choose the right model, you need to first analyze which model would be best preferred by your viewers. Not all monetization models are great for your business, you need to understand which model will drive better revenue. It is always better to add or eliminate monetization models based on your viewer’s interest.
For instance, if you’re aware that most of your viewers prefer the SVOD method, charge your fees accordingly. If you have more viewers who prefer the TVOD method for certain content, you can add this model only for those types of content.
The pandemic played a major role in shifting all physical spaces online which includes movie platforms too. Now that you create a movie streaming website or app, it’s time to drive better revenue. Thus with the tips provided above, this process is simple. However, if you wish to get started with the right assistance, you can invest in reliable movie streaming solutions available in the market. They provide tons of features and can help you generate revenue well. So tell us, when do you plan to get started? Which monetization solution will you use for your online movie streaming service?