Video Monetization Models for Broadcasters: How to Increase Revenue with VOD

Blog 3 min read | Aug 12, 2021 | JW Player

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Recent consumption trends indicate an opportunity for digital-first broadcasters to monetize audiences with a strategic mix of monetization models. Video consumption dramatically increased in 2020, with consumers turning to streaming services in their living rooms for entertainment, fitness, sports, and online learning during the pandemic. Subscription services skyrocketed, as did the potential for ad revenue.

That momentum hasn’t slowed in 2021. 

With more entertainment options than ever before, broadcasters have reached an inflection point. How can film & TV companies overcome consumers’ subscription fatigue while also providing superior viewing experiences that aren’t completely overrun by advertisements?

The answer lies in utilizing a strategic mix of monetization models to entice and retain audiences. According to a recent JW Player survey, 41% of digital-first broadcasters are interested in exploring new monetization strategies with robust video monetization platforms such as JW Player. 

→ Download now: Video Industry Insights for Digital Broadcasters

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3 Ways Broadcasters can Monetize their Video Content to Increase Revenue

Freemium Monetization Model: Insights & Best Practices

Across the JW Player network of OTT providers, the average revenue per user (ARPU) for SVOD services is 100x that of ad-supported services, but conversion is at ~10%. Providing a freemium model can help broadcasters effectively marry reach and revenue. When doing so, it’s important for broadcasters to:

  1. Put compelling videos in front of a paywall
  2. Enable pay-per-view for special events (perhaps as a transactional video-on-demand premium)
  3. Offer choice through pricing tiers

For more insights on a freemium monetization model for broadcasters, including how & why to set up a TVOD model, please refer to section 2 of the JW Player playbook, Video Industry Insights for Digital Broadcasters.

Ad-supported Monetization Model: Insights & Best Practices (AVOD)

Over a third (34%) of US households that have video streaming capability use ad-supported streaming services. Consumers are increasingly price-conscious and wary of the growing number of subscriptions, which has allowed AVOD (advertising video-on-demand) broadcasters to gain market share. 

Because traditional TV no longer has the reach it once had, advertisers are shifting their dollars to digital-only broadcasters. Connected TV ad revenue is predicted to grow 25% this year. Due to the proliferation of subscriber services and subscription fatigue, ad-supported business models are expected to grow. AVOD broadcasters should follow best practices to increase revenue, including:

  1. Using a mix of live and VOD content
  2. Scheduling proper timing for ad breaks
  3. Diversifying ad inventory & creative content 

For more insights on an AVOD monetization model for broadcasters, please refer to section 2 of the JW Player playbook, Video Industry Insights for Digital Broadcasters.

Subscription Monetization Model: Insights & Best Practices (SVOD)

In 2021, consumers are subscription-wary so it’s more important than ever to focus on audience retention. SVOD broadcasters (subscription video-on-demand) should focus on content, viewer experience, and pricing/discounts to retain audience loyalty. 

Film & TV broadcasters can effectively use content releases, marketing, and competitive pricing to increase subscriptions and therefore increase revenue. For an SVOD monetization model, it’s important for broadcasters to:

  1. Produce new content regularly
  2. Communicate often with existing subscribers through marketing
  3. Set competitive pricing and use coupons

For more insights on an SVOD monetization model for broadcasters, please refer to section 2 of the JW Player playbook, Video Industry Insights for Digital Broadcasters. Our partner, Cleeng, also has useful guides on how to set SVOD pricing.

Download the JW Player playbook, Video Industry Insights for Digital Broadcasters: Reach New Audiences on New Screens to learn more on monetization models, engagement, and branded OTT solutions.

JW Player offers a premium video monetization platform for broadcasters of all shapes and sizes. Learn more about our broadcast video solutions here.