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How to Make Money with OTT Streaming App?

The Coronavirus pandemic affected most industries, and the chances of recovery for entertainment and media were several. In the present reality, Over the Top or OTT platforms have been dominating the entertainment and media industry post the pandemic scenario. 

Such platforms comprise apps for viewing videos, signing up for online classes, listening to podcasts or music, and also going to religious gatherings and ceremonies on a remote scale. To think of it, one actually accesses several OTT platforms on a daily basis. 

As the internet-directed multi-device ecosystem expands, so do the chances for OTT. It is comprised of VOD or video-on-demand and live streaming – sports events, premieres, award shows, concerts, etc. The big OTT players like Hulu, Netflix, YouTube and Amazon Prime Video have already carried out monetization methods.

How OTT Platforms Earn Money

How does OTT Platform make money? OTT apps and platforms such as Netflix have grown their business exponentially in the current pandemic scenario. All across this period, OTT platforms were the safest and most user-friendly means of entertainment. Will this trend be sustainable and last long? To sustain it, a solid revenue model is vital. 

Generally, OTT revenue model subscriptions are affordable, and some are free also. So, it is quite profitable for the consumers. There is a lot of incoming traffic on these platforms. Such platforms can therefore monetize themselves with several revenue possibilities. It is easy to make money with OTT. Also, OTT app monetization platforms have a unique edge when talking about accessibility compared to other media. 

They have easy access on a global scale or on a fixed are based on demand, coverage, and competition. If a considerable portion uses Smart TVs, OTT platforms choose websites. Most consumers today use Smartphones, and so mobile applications become the most suited option. Such platforms are like ATMs. You can watch movies anytime i.e. Any Time Movies, which you can view if you have a net connection. Because of this, viewership to their platform increases way above the previous conventional media.

Top 5 Methods to Make Money in OTT App

Thinking of how to make money with OTT? Listed below are 5 ways how to do it:

  1. Sell/Promote Advertising on the OTT Channels (AVOD)

In Advertising Video on Demand or AVOD model, OTT providers do content streaming for no pay for their end-users. They sell advertisements to generate revenue from their viewership. A few examples of AVOD services are Pluto, YouTube, Xumo, etc. The biggest benefit of using the AVOD model is consumer acquisition. As end-users do not pay to watch the content, it is very easy to acquire them. It is also like the conventional TV and so acceptable to the consumers, specifically those who are price-sensitive and are not ready to pay to view the content.

  1. Sale of paid subscriptions to OTT channels (SVOD)

In Subscription Video on Demand model or SVOD, consumers pay a recurring fee to avail of the streaming service. In exchange, they receive continued access to the content. This is one of the most well-known monetization strategies on OTT, owing to the success of OTT services such as Disney+, Netflix, etc. As users have to sign in to your platform, all kinds of information can be learned about the audience.

  1. Sell single videos or series (TVOD)

Transactional Video On Demand TVOD has garnered loads of attention. As the pandemic ruined plans of most movie premieres and events, brands have decided to get those things online. TVOD allows users to pay per view or pay per piece (PPV). As an example, watching a live show or event or renting a movie. TVOD is an excellent model if you host big hits or blockbusters, live shows, and events that are sold as tickets. You have the chance to re-market the consumers with other shows or content which are similar. You have the ability to evaluate and know the audience on a direct basis, once they have made the transaction.

  1. Sell special or exclusive content to premium subscribers (PVOD)

PVOD works well for end-users and publishers if the content justifies the price. Fans would like to get access to the most anticipated content. Some are in a position to pay a premium to receive it sooner, and this is arranged on a first-day first show basis. This is a worthy cost to watch content before it is disturbed by reviews, social media, critics, etc.

  1. Make a combination of models or Hybrid

There is a different model which is a hybrid of the above-mentioned models. Such models can be brought together in many ways, like making use of a freemium model. With a freemium model, the service is given for free for a while and it then completely becomes SVOD later. There are AVOD services that provide an ad-free experience until the consumer is ready to pay and then turn them to an SVOD model like Hulu.

OTT Monetization Model – Which is the Best One?

Every one of these monetization models has its own strengths and weaknesses and is suitable for different levels of business development. OTT app development is something all providers are going for today. Newcomers to the OTT market will most likely have to begin with an ad-based model to expand their viewership. This model offers users the maximum incentive to try out the service as it is free. Optionally, once you gather a substantial audience, you might think of converting to a subscription-based model or even a hybrid one to secure premium content behind a type of paywall. These methods will be profitable once you have a substantial quantity of followers. Choosing a hybrid monetization OTT platform model is the best choice for publishers and content owners. An ad-based monetization model will assist you in dealing with the initial stages of business while carrying out one of the rest of the two will help you maximize income once you establish yourself on the market.


Starting an OTT business is quite lucrative for all size and types of companies. Irrespective of whether you are an enterprise aiming to compete against the large OTT providers for a portion of this market or a single, independent exclusive creator, developing and building an OTT app and monetizing it can be beneficial in the long run.

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