What is OTT business model?

Sekar Chandra
What is OTT business model?

TVOD: Its full form is 'Transactional Video on Demand'. To watch the content in this, you get the option of rent available even after subscription. In this, if you take that content on rent, then you will get permission to download that content and you will be able to watch that content. Some such contents are kept in this list which have more craze among the people.

SVOD: Its full form is 'Subscription Video on Demand'. In this, users have to pay subscription for 7 days, 15 days or 1 month. After this, users are able to watch their favorite content on that OTT platform. The money that comes from subscription goes directly to the owner of the OTT company. OTT platforms like Netflix, amazon Prime and Disney Plus fall in this category.

AVOD: Its full form is 'Advertising Video on Demand'. This section remains completely free. There is no cost for watching a movie or series on such OTT platforms. But there is a term and condition in this and that is that you cannot skip the ad videos coming here. You have to watch these ads even if you don't want to and the advertising company pays the entire amount for the ad to the OTT company. There is very good earning in this section. Platforms like Hulu and Peacock fall in this category. Apart from this, Netflix and Disney Plus have also launched subscription plans with ads.

Multi Screen Model: The business model of earning on OTT is very simple. If someone has a subscription to OTT, then he can watch the content as per his convenience on smartphone as well as laptop and TV. However, different OTT companies set different amounts on this.

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