Are you so tired of pouring all your heart and soul into creating videos, only to be left wondering how you can turn your passion into a profitable venture? Well, we got you covered. Whether you’re a content creator or business owner, we know how important it is to make money from your videos. Obviously, it is not an easy cakewalk as it takes a lot to grab eyeballs to your video content. We understand that there are a plethora of challenges you face – from growing your audience and building engagement to finding the best platforms for video monetization and navigating the ever-changing landscape of digital media.
But, we’re here with this ultimate guide to know crucial insights about online video monetization in 2023, including an understanding of the best platforms on the market currently.
What is Video Monetization?
Video monetization is a way of generating income from the videos you post online whether that’s YouTube (the most popular one) or other video-on-demand (VOD) platforms.
Video content comes in a lot of forms, including animated clips, short films, documentaries, how-to tutorials and unboxing videos – all of which can be monetized. Once a video is uploaded to your chosen video hosting platform, it becomes a low-effort way to generate passive income.
Here’s the latest predictions-
- The surge of video monetization platforms has exploded in the past decade, and growth continues to be increasing in the coming years. Video streaming platforms are a contributing factor to this.
- As per fortunebusinessinsights report, the global video streaming market is expected to grow at USD 554.33 Bn in 2023 (upward from the year 2022 value i.e. 455.45 Bn) to USD 1902.68 Bn in 2030, attaining a CAGR of 19.3%.
- The rising number of video-on-demand services users and surging consumer spending on media and entertainment aids market growth.
However, what platform you pick to host and sell your content also have a major effect on how successfully you can scale. Let’s first take a look at the primary ways where you can sell your video content via
- Advertising on Youtube
- Creating a Community via Facebook
- Making short-form videos via Instagram and Tiktok
- Gaming streams on Twitch
But these aren’t the only ways for you to make money from your videos! Yes, you heard it right. As you proceed you will get to know, but first, let’s shed some light on how video monetization works.
How Does Video Monetization Work?
At present, the video monetization process works by these top three primary revenue sources for streaming the video content online:
- Licensing
Here, a content provider or the rights holder licenses the rights to distribute their video assets to other services. In such cases, each party has profits from the original sale of the content, which is divided based on a revenue-sharing agreement defined in their licensing contract.
- Direct-to-consumer (DTC)
In DTC, streaming facilities sell the right to consume video content directly to viewers. The content can be provided by an original production such as Disney+’s, but licensed from another party such as Netflix.
- Advertising
An ad-supported service is compensated by brands in exchange for displaying their advertisements to viewers. One major example is Samsung’s demand-side platform (DSP), Samsung Ads, which sells inventory to parties such as sell-side platforms (SSPs) that represent advertising brands.
Besides, Meta offers monetization tools to help individuals and organizations who create content generate sustainable revenue. On the basis of the content type you publish, you can monetize your content through ads if you meet the necessary eligibility requirements.
Types of Video Monetization Models
1. AVOD — Advertising Video on Demand
What is it: Using advertising to monetize your content which is otherwise free to view. Depending on the length of your video content, you can add an ad to your video pre-roll (before your video plays), mid-roll (during the video), and post (at the end of the video). You can also determine if you want to keep your ads skippable or not.
When can it work: When the ads are not too long, and not too intrusive. Keep a good balance of content time versus ad time.
Advantages: Since your content is free to view, you should be able to get a higher number of viewers. You can either get one brand to sponsor the whole video, or have different brands for different segments.
Disadvantages: The user-experience is compromised. An ad at the start of a video could end up making the viewer exit your video before it starts.
Example: The ads that play within the videos one watches on the likes of YouTube, Facebook etc.
2. PVOD — Premium Video on Demand
What is it: Through Premium Video on Demand (PVOD) you can charge viewers to allow them to access content before it’s aired elsewhere.
When can it work: Once your OTT platform has attracted several viewers with wide enough engagement, this could be extremely beneficial. You can encourage fans to discuss this on social media. Once a person has seen the content posts about it, the others could face the fear of missing out and immediately log on to the platform to watch the content.
Advantages: It’s a win for those kinds of users who just cannot wait to watch a piece of content. You can demand a price higher for your content too, thus making it a win-win.
Disadvantages: Your content needs to be extremely engaging and premium to fall into this category. This only works well for certain genres of content — a new movie release, a certain sporting event.
Example: Disney+ charged users (even those who had a subscription pack) to watch Mulan on the first day of the release. Users who opted not to pay for it, had to wait their turn to watch it.
3. SVOD — Subscription Video on Demand
What is it: This is a model where you charge users a recurring fee to access your content.
When can it work: This is one common model OTT players use. One should use this model if content is being released frequently. It is primarily the right choice for businesses focusing on content with long-term value.
Advantages: One can play around with this by offering different subscription models — daily, weekly, monthly, yearly. A tip here — make your yearly subscription price much lower than what a user would pay on a monthly basis for a year. Here, the OTT benefit also comes in where one can subscribe and pay for content and then consume it whenever they wish to.
Disadvantages: Content-library needs to be addressed frequently, else, one could see users opt out of the platform and not renew their subscription. Also, subscribers could end up sharing ids with friends and family which could hurt your revenues.
Example: This is most common with the likes of Amazon Prime Video, Netflix, Disney+ etc, all using different prices.
4. TVOD — Transactional Video on Demand
What is it: Charge viewers for accessing on-demand videos. These could be live streams or a PPV (pay-per-view) event which is accessible only for a limited period of time. You could charge users a fee to either download it permanently and watch, or give them access for a limited time.
When can it work: Use this for contextual content, one that a viewer would simply not be able to do without. If you’re looking to offer TVOD, you could sweeten the deal for your user by providing an ad-free experience.
Advantages: You’re not changing your other models of revenue. This is a one-off and can help you measure exact interest in a piece of content.
Disadvantages: Consumers could be skeptical about paying for one piece of content only.
Example: Google Movies, YouTube movies, iTunes etc.
5. HVOD — Hybrid Video on Demand
What is it: This is a mixture of using two or more of the above types of video monetization models. Most global OTT platforms use this method. You can offer some pieces of content for free, and then get users to pay to access a certain piece of content from your library.
When can it work: If you’re looking to mix and match a free and paid service, you need to make sure each piece of content is very different. If you do have that in your content library, then this is the way to go.
Advantages: Your user numbers increase because of the free users, which helps in promoting your platform to advertisers. And if your content is engaging, the free users can take that step up and pay for content.
Disadvantages: Offering a free and paid subscription service could see consumers picking and sticking to the former.
Example: Hulu offers differentiated offerings at different prices to consumers. There is a lower subscription fee which includes ads in their service and a premium fee for an ad-free viewing experience.
Tips for Getting Started with Video Monetization
Now we understand how video monetization works, and we’ve provided an overview of the top monetization models. Next, we need to dig deeper into the details of how to get started with video monetization-
Determine your content goal
As a beginner in content creation, you need to first determine your goal. For video streaming businesses, you already know what you’re creating: video content. However, it’s more important to identify which specific types of video you are creating, and in what segment of the market.
Understand your target audience
Once you’ve determined an overall approach, the next step is to understand your audience. This depends on market research and having an idea of what you are offering. The process of understanding your target audience varies depending on your business, but it all depends on the basic process of identifying your ideal viewer base.
Focus on quality content
Another fundamental consideration is content quality. People watch videos for specific reasons: education, entertainment, knowledge, excitement, news, and so on. And trust me, viewers have little patience for low-quality videos. They will randomly switch to other videos! You need to focus on your video style and content, as well as a few technical issues such as audio, video resolution, and encoder settings.
Choose the right monetization method
Now, it’s time to choose which method or combination of methods you’ll pick to monetize your content. We’ve already covered the major models- subscriptions, transactional, and advertising monetization above. You can choose as per your requirements and preferences.
Select the right online video hosting platform
Video monetization requires content for which people are willing to pay, and the technical means to deliver and monetize that content. In other words, you need an Online Video Platform that offers the necessary tools for your chosen monetization model.
What’s next?
Well, to help you with choosing the right video monetization platform, we have curated a list of top picks from 2023. However, before moving ahead let’s understand a few strategies that will help you optimize your video content.
Strategies for Optimizing Your Video Content Monetization
To outstand in this competitive digital media space, content owners need to use innovative video content monetization strategies as given below-
1. Be consistent
One of the most important strategies to grow your video content is to be consistent with your uploads. This helps your audience know when to expect new content from you and encourages them to keep coming back for more.
2. Engage with your audience
Building a community around your content is essential for growth. Make sure to interact with your viewers by responding to comments and questions, and asking for feedback to improve your content.
3. Optimize your videos for SEO
Search engine optimization (SEO) is crucial for getting your videos discovered on platforms like YouTube. Use relevant keywords in your titles, descriptions, and tags to help your videos rank higher in search results.
4. Accurately analyze content in the library
Accurate and data-driven content valuations are crucial to optimize distribution strategies, platform/distributor partner selection, and revenue models. To achieve that, you should implement software which aggregates the data, and track transactions across different channels. With the obtained results, you can easily discover which content drives the most revenue, and compare the performance of content assets across platforms.
Top Video Monetization Platforms in 2023
It’s time to reveal the top monetization platforms for video-streaming business in 2023. Here is the list of Top Video Monetization platforms.
Enveu Subscription Manager
Enveu is one of the trusted names in top video monetization platforms for content streaming businesses creating monetization opportunities across PPV, SVOD, TVOD & AVOD. Their video monetization platform- Subscription Manager allows you to seamlessly handle all video monetization and billing for your media entertainment ecosystem. The content owners can effortlessly switch between revenue models & deliver the best user experiences in order to avoid churn. Moreover, with a premium low-code Saas platform i.e. Experience Cloud, you can easily launch your OTT platform within 5-6 weeks across 10+ platforms like Apple TV, Android TV, Chromecast, Amazon Fire TV, Roku, Playstation, etc.
Backed by a team of tech professionals, Enveu’s has served some of the topmost National and International clients in the industry, such as Dish TV, Nonton, Dialogue Viu, Watcho, Thai PBS, etc.
Key Features
- Less-code SaaS platform
- Comprehensive headless video CMS
- A unified platform to manage your subscriptions easily
- Allows integration of your application to 50+ pre-integrated partners.
- Gain insights on viewership & engagement metrics
JW Player
Image Source- JW Player
JW Player is another strong monetization player for video content creators, broadcasters and publishers. This platform is primarily focused on delivering media-grade stream quality and is used by a few notable TV networks and publishers. Some examples include Fox, Viacom and VICE.
JW Player has a suite of tools and features dedicated to keeping a high-quality streaming experience. In terms of monetization, the platform supports all AVOD, SVOD and TVOD strategies. The platform is connected to multiple content delivery networks and can automatically convert live streams into VOD content. The player itself is entirely customizable through both API and CSS.
Key Features
- Uses HTML 5 player and has integrations for both HLS and DASH
- Strong ad management tools for customizing the user experience
- Highly customizable, with features such as motion thumbnails, automated playlists and CSS customization
Brightcove
Image Source- Brightcove
Brightcove is one of the best cloud-based OTT platform software. Considering the multiple viewing devices challenge for many content owners and Pay-TV providers, Brightcove allows customers to launch content to multiple platforms at once. Additionally, it supports all three monetization models and customers can easily launch and monetize video content across mobile, web, connected TV, and smart TV all from one platform.
The interface is easy to use, with controls at the bottom of the screen that allows you to quickly access your content. With its customization, you can change the colors, fonts, and layouts as per your requirements. Many reputable publications, including Vox Media, Gannett and Aljazeera use the software.
Key Features
- Multiple streaming options
- Content delivery solution with DRM rights
- Get access to a library of video assets from the web, including YouTube and Vimeo.
- Easy integration with your site’s CMS (Content Management System)
- Create custom player layouts
Dacast
Image Source- Dacast
Another popular OTT streaming solution in the list is Dacast, which offers both live streaming and VoD solutions for smartphones and other platforms. Moreover, it offers to create professional all-device video players, video transcoding and stream recording features for the content professionals and sports broadcasters. The Dacast platform supports all three main ways of monitoring video content; advertising, pay-per-view and subscriptions.
One of the major highlights is that Dacast is in-built with Akamai CDN and Limelight for low-latency performance and video streaming of high-quality.
Key Features
- Smooth monetization with easy integration of APIs through VoDs.
- Compatible with all devices due to HTML5 player.
- Buffer free streaming of videos
- Content security with each plan
- Global currency conversion and multilingual interface
Uscreen
Image Source- Uscreen
Uscreen is the platform for you if you’re searching for a service that requires zero coding skills and handles all of your basic video streaming and monetization needs at a high quality. Here, the user can easily upload videos and build a go-to-market website. Monetization of Video on Demand (VoD) services and global live-streaming features makes it an ideal choice for content owners.
Key Features
- Video Hosting & Monetization
- Built-in marketing and sales tools
- Fast encoding for 4K UHD video experience
- In-app purchases
- Centralized CRM
Vimeo
Image Source- Vimeo
Vimeo is a widely used online video platform which allows you to monetize videos, create marketing content, offer video subscriptions, build branded apps, and host live events. If you need to build a website, Vimeo OTT can even help you with that too.
The platform supports TVOD and SVOD, as well as a live-streaming monetization model. If you already have a following, you can also offer free trials and free-to-view content to the audience via Vimeo OTT to help generate more sales.
Key Features
- Stream live or on-demand video content across the web, and mobile and TV apps
- Monetize your videos via subscriptions, one-time payments, or advertising
- Manage your content library with an easy-to-use CRM
- Track video performance and analytics
- Run promotions and special offers
IBM Cloud Video
Image Source: IBM
IBM Cloud Video is another option for businesses looking for a reliable content monetization and OTT platform to stream high-definition, quality video to subscribers. It offers different ways to monetize content and transcode videos easily without having to learn code.
One of the major reasons why it is an excellent platform is copyright. IBM’s enforcement service automatically eliminates plagiarism and copyright violations by detecting plagiarized content and terminating broadcasts with such content. For streaming businesses looking to ensure all of their content is legal and above board, this is also a choice for you. Roland, Airbnb, BBC America, and Sony are some of the top brands using the IBM video cloud.
Key Features
- Compatible for all devices, including smart TVs
- Faster streaming options
- Offering multiple CDNs in different locations
- Branding can be customized to match logos and styles
All-in-All
Video monetization is very lucrative for many businesses today. Given the scale of predicted growth in this industry, there will be many opportunities to succeed in monetizing your video content. However, you must choose the right video monetization method and follow a smart business plan to maximise these opportunities.
As you can see, several providers scaling the future of content creators and broadcasters in the way mentioned above, however, take a look at Enveu which excels in the provision of a content monetization platform, fully equipped with tools for marketing and analytics of content performance. You will be able to launch a video platform of your own- dedicated to your brand of content only. Contact now!
