Video Streaming

OTT Monetization: How Will a Video Streaming Service Bring You Money?

A video streaming service is a promising area for companies and organizations. They watch how large streaming services gain more popularity and revenue. They feel inspired and want to generate money by streaming videos to viewers.

There are multiple ways you can generate revenue with a video streaming service, making it a profitable business. There are subscriptions, advertisements, a transactional-based approach, and a hybrid model.

Delivering original content to viewers can bring a lot of money. However, you will probably need the right solution to run your video streaming service. The right solution can provide multiple opportunities for content monetization: from choosing a suitable model to reaching more people.

As your audience expands, so does the potential for increased revenue, creating a sustainable financial growth trajectory for your streaming service. It’s not just about boosting your income; it’s also about smart financial management. Consider allocating a portion of your earnings to a dedicated online savings account.

How Will a Video Streaming Service Bring You Money?

Here’s a list of OTT platform monetization models that can help you make money by delivering videos to viewers:


Subscription-based monetization model allows you to charge a fee from viewers on a regular basis. This process allows you to have an ongoing revenue stream because viewers renew their subscriptions every month or year.

Subscriptions are enticing to viewers because people pay once in a limited period and get unlimited access to a large video library for a period. They can cancel or renew the subscription at the end of the purchase period without any long-term contracts.

What people also like about subscriptions is that they are usually less expensive than a fee for traditional television. Often, a lower price can be a decisive factor when a user chooses between two streaming services.

Today many viewers have around 3-4 subscriptions simultaneously, watching all kinds of content they want. However, some of them switch to advertising-based video streaming services for some reasons. We talk about this kind of service below.


Advertising-based video streaming services are a win-win-win for viewers, companies, and advertisers. Here, everybody gets what they want.

Firstly, these services offer free content to viewers. Instead of paying for content, viewers watch commercials during video playback. Some people don’t mind watching ads in exchange for free content – these are usually customers on a budget. However, people cannot obtain all subscriptions in the market. For that reason, they use free ad-based video streaming services.

Secondly, a provider generates revenue by running ads on videos. The provider partners with advertisers who want their videos to be presented on the service. Usually, your service should meet some advertisers’ requirements. 

And thirdly, advertisers show their ads to viewers who can click on them to learn more about a product or service displayed.

Advertising on video streaming services is more accurate than it is on television. You can segment your viewers by interests, demographics, and other factors to show them ads they might be interested in. They can learn more about products and services advertised straight away.


Pay-per-view is also known as a transactional-based video streaming service. In this case, you allow people to purchase access to each video separately, unlike subscriptions that offer access to all videos.

Also, pay-per-view services can allow viewers to download a video on their devices or set time limitations on access duration. It is up to the provider to decide.


A hybrid monetization model allows you to combine several revenue-generating approaches we described above.

For example, a popular combination of monetization models is advertisements and subscriptions. Netflix implemented it not long ago. The company now has two plans: one is an ad-free subscription at a higher price, and another one is an ad-based subscription at a lower price. The platform took this measure to retain customers and cover viewers on a budget.

Another illustration of combining monetization models is a mix of pay-per-view and subscriptions. You can sell videos either on a subscription basis or allow viewers to purchase each piece of content separately. Or you can create two groups of videos: one is available on a subscription, and the other is Premium content that requires an additional fee.

What Else Can Help You Generate Revenue?

IPTV/OTT platforms are created so that you, a content creator, can generate revenue by delivering videos and ensuring the best experience for your audience. These platforms usually have everything necessary for that.

A CDN software and applications are components of a solution that can help you generate more revenue.

Applications allow you to cover as many devices as possible and ensure a better viewing experience. Since some people prefer watching videos on laptops and others like using a Smart TV, applications are vital here. By providing apps for various platforms and devices, you increase the best quality of experience.

CDN stands for Content Delivery Network. It allows you to reach viewers anywhere in the world. With it, you can deliver videos to one location or become a worldwide streaming service. You can become a service for viewers with a particular interest around the world or a national streaming service.

CDN is what will help you deliver uninterrupted viewing experiences to people around the world and protect your service from DDoS attacks.

Don’t forget about translating and localizing content if you cover multi-language markets. Also, think about adding subtitles to your videos in different languages.

Drawing the Line

A video streaming service can be a gold mine for companies and organizations in terms of generating revenue and bonding with your viewers. Luckily, it is not so difficult to launch one. You need to find the right solution for video streaming with all the necessary components for a smooth operation. Consider Setplex as the company offers an end-to-end solution.

You can rely on one monetization model or choose several, making it more flexible for viewers to purchase your content. You have subscriptions, advertisements, pay-per-view, and a hybrid approach at your disposal. The model you choose will define how you generate revenue.

Also, the right solution equipped with applications and CDN can help you reach people around the world, boosting your income as well.

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