How to monetize an OTT platform? The best monetization model in 2023

Discover 2023's top OTT monetization models with Vodlix's premium platform

By Keira Manifold

October 23rd, 2023

Monetize your OTT Platform

Most famous monetization models

OTT (Over-the-Top) services have several popular monetization models, each with its own set of benefits and challenges. Here's a detailed look at the most common ones:

1. Subscription Video on Demand (SVOD):

This model allows users to pay a fixed subscription fee (monthly or annually) for unlimited access to a content library.

Examples: Netflix, Amazon Prime Video, Disney+.


Predictable, recurring revenue; high customer lifetime value.


Requires continuous investment in content to retain subscribers; competition is high.


2. Advertising Video on Demand (AVOD)

Content is provided to users for free, but they are shown advertisements during the viewing experience.

Examples: YouTube, Crackle, Tubi.


Attractive to a large audience, particularly those unwilling or unable to pay; steady revenue if there's high traffic.


Requires large viewership for substantial ad revenue; ad blockers can reduce effectiveness; excessive ads can harm the user experience.

AVOD monetization Model

3. Transactional Video on Demand (TVOD)/ Pay-Per-View (PPV)

Users pay for each individual piece of content they want to watch.

Examples: iTunes, Google Play Movies & TV.


Allows monetization of premium content; users pay only for what they use.


Revenue can be unpredictable; requires frequent high-value content.


How to choose the best monetization model?

Choosing the right model depends on the type of content you offer, your target audience, market dynamics, and your business objectives. It's also common for OTT platforms to evolve their strategies over time, starting with one model and then potentially incorporating others as the platform grows and market conditions change.

The best model for you depends on several factors:

1. Audience Size and Engagement

SVOD requires a loyal audience, while AVOD can cater to a larger, more diverse viewer base.

2. Content Type

Exclusive or niche content might work well with TVOD, while diverse, regular content is suitable for SVOD.

3. Revenue Goals

AVOD might start earning faster with a large audience, but SVOD can provide more predictable, recurring revenue.

When considering these models, a platform like Vodlix can be instrumental. Vodlix allows content creators and businesses to leverage all these monetization options, offering flexibility to choose the best model for your needs.

The platform's scalability and comprehensive analytics tools help you understand your audience better, enabling you to adapt your monetization strategy as your viewer base evolves. With Vodlix, you're equipped to maximize your earnings, regardless of the monetization model you select.

Why choose a Premium Video Monetization Platform?

Choosing a premium video monetization platform can significantly impact the success and scalability of your content business. Here's why investing in a premium platform can be a wise decision:

1. Customization and Branding

Free platforms often limit the ability to customize the look and feel of your content presentation. Premium platforms, however, allow for extensive customization, offering a white-label solution that you can tailor to reflect your brand's unique identity, which is crucial for brand consistency and recognition.

2. Monetization Flexibility

Free platforms may restrict your monetization options, typically limiting you to advertising-based models. In contrast, premium platforms provide a range of monetization strategies, including SVOD, TVOD, AVOD, and hybrid models, giving you the flexibility to choose what works best for your content and audience.

3. Better Audience Insights

Premium platforms provide advanced analytics and reporting tools, enabling you to gain deep insights into your audience's behavior and preferences. This data is vital for making informed decisions about content strategy, marketing, and monetization.

4. Quality of Service

Free services can often mean lower video quality, more frequent buffering, and limited customer support. Premium platforms prioritize the viewer's experience, offering higher streaming quality, minimal buffering, and responsive customer service.

5. Control Over Content

With free platforms, you may have less control over how and where your content is shown, and you might have to compete with a multitude of other creators. Premium services allow you to control content distribution, helping to target your desired audience more effectively.

6. Security and Intellectual Property Protection

Premium platforms provide advanced security features to protect your content from unauthorized access and distribution, ensuring your intellectual property remains secure.

7. Scalability

As your audience grows, you need a platform that can grow with you. Premium platforms are built to scale, ensuring they can handle increased traffic and content without compromising performance.

By choosing a premium platform like Vodlix, you're investing in the future of your content business. Vodlix offers not just extensive customization and multiple monetization options, but also superior audience analytics, impeccable streaming quality, and outstanding customer support. With its scalable infrastructure, you can rest assured that as your business grows, Vodlix has the capabilities and features to accommodate your expanding needs. Try Vodlix now!