Guide to online streaming, OTT and Monetisation

In the ever-evolving landscape of digital entertainment, Over-The-Top (OTT) platforms have emerged as the go-to solution for content consumption. As the popularity of OTT services continues to soar, content creators and providers are increasingly focusing on OTT monetisation strategies to capitalise on the vast revenue potential.

In this article, we will delve into the intricacies of OTT monetisation and explore the diverse avenues available for maximising profits in the dynamic world of online streaming. It also serves as a guide to the most common abbreviations and concepts in Over-The-Top (OTT) streaming, from core delivery models to the intricacies of monetisation and advertising.

Core streaming and video acronyms

What is OTT?

OTT (Over-The-Top): This refers to any video content streamed directly to viewers over the internet, bypassing traditional cable or satellite television providers. Services like Netflix and Disney+ are prime examples. OTT platforms offer users a wide range of content, from movies and TV shows to exclusive series and documentaries. To sustain and grow these platforms, content creators need effective monetisation strategies. Learn more in our Guide to OTT here.

OTT guide (1)

Here are some key monetisation approaches:

VOD (Video On Demand)

This allows users to watch what they want, when they want. Instead of a fixed broadcast schedule, viewers can select a title from a library and play it instantly. It's the core of most modern streaming services.

Subscription-Based Models (SVOD)

One of the most common monetisation methods is subscription-based models. Users pay a recurring fee to access premium content, creating a steady and predictable revenue stream. Platforms often offer different subscription tiers, providing users with various features and content libraries based on their chosen plan.

Ad-Based Monetisation (AVOD)

Ad-supported models allow users to access content for free in exchange for watching ads. This approach leverages advertisers' payments to generate revenue. Ad-based OTT monetisation is an attractive option for users who prefer not to pay for a subscription but are willing to endure occasional advertisements.

Free Ad-Supported Television (FAST)

FAST services, including Pluto TV, Peacock, and Roku, operate on an ad-supported model similar to AVOD. Users can watch content on channels with ads, and if they want to catch a specific show or film on a FAST channel, they must tune in at a fixed time, enduring ad breaks akin to traditional TV viewing. This differs from other video-on-demand (VOD) services like AVOD, where subscribers can view content at their convenience without adhering to a fixed broadcast schedule.

Transactional VOD (TVOD)

Transactional Video On Demand (TVOD) involves charging users on a pay-per-view basis. This model allows users to rent or purchase specific content for a one-time fee. It's a flexible approach, particularly suitable for premium or exclusive content that may not be included in subscription plans.

Freemium Models

Combining elements of both subscription and ad-based models, freemium models offer a basic level of content for free while charging for premium features or additional exclusive content. This approach entices users with a taste of the platform's offerings and encourages them to upgrade for a more comprehensive experience.

Common Ad Tech Abbreviations

For services using AVOD or FAST models, understanding the technology behind ad delivery is key.

Pre-Roll, Mid-Roll, Post-Roll Ads

These terms refer to when an ad is shown.

Pre-roll: An ad that plays before the main content begins.
Mid-roll: An ad that plays during the content, like a commercial break.
Post-roll: An ad that plays after the content has finished.
CSAI (Client-Side Ad Insertion): A traditional method where the video player on the viewer's device (the "client") requests an ad from an ad server and plays it by interrupting the main content stream. This is simpler to implement but can be blocked by ad blockers.
SSAI (Server-Side Ad Insertion) / DAI (Dynamic Ad Insertion): A more advanced method where ads are stitched directly into the video stream on the server-side before it reaches the viewer's device. This creates a seamless, broadcast-like experience that is immune to ad blockers and provides a smoother transition between content and ads.

Trusted and common payment providers

Stripe: A flexible, developer-focused platform for handling online payments and building complex financial products. Built into the Vimond platform.
PayPal: A globally recognised and widely trusted platform for online payments and money transfers.
Adyen: An all-in-one global payment platform that processes online, mobile, and in-store payments.
Braintree: A PayPal service that specialises in providing payment solutions for mobile and web applications.
GoCardless: A platform focused on simplifying recurring payments and direct debit for subscription-based businesses.