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4 steps to a Cost efficient and Effective OTT Monetization Strategy


Markus Hejdenberg

Head of Sales

September 5, 2023




As the demand for high-quality streaming content continues to rise, so do the challenges associated with operating profitable OTT platforms. Reducing the Total Cost of Ownership (TCO) through an effective OTT monetization strategy is a crucial aspect of sustaining success in this competitive arena. This strategy involves maximizing revenue while minimizing operational expenses. Let's explore how you can achieve this balance and drive optimal results.

1. Diversify OTT Monetization Models

The first step in optimizing your OTT monetization strategy is to diversify your revenue streams. Offering a mix of monetization models can broaden your audience reach and revenue potential. Consider incorporating the following models:

  • Subscription (SVOD): Offer tiered subscription plans with varying features and pricing to cater to different user segments. Experiment with pricing models, introductory offers, and bundling options to maximize subscriber acquisition and retention.
  • Advertising (AVOD): Implement targeted ad delivery and dynamic ad insertion to enhance the value of your ad inventory. Advertisers are more willing to pay for precisely targeted audiences, thereby improving ad revenue.
  • Freemium: Provide a basic version of your platform for free, with the option for users to upgrade to a premium subscription for enhanced features and an ad-free experience.
  • Hybrid: Combine SVOD, AVOD, and potentially TVOD to cater to a broader audience. Offer free content with ads and premium content behind a paywall or subscription, balancing the value for each user segment.
  • TV Everywhere (TVE): Link with traditional cable or satellite TV subscriptions. Allow subscribers to access content on OTT platforms using their existing credentials, broadening their viewing options and solidifying their subscription value.
  • Pay-per-View (PPV): Charge users for one-off events or special broadcasts. Ideal for exclusive live events like sports or concerts, ensuring viewers receive unique content worth their payment.

2. Optimize OTT User Experience

A seamless and user-friendly experience is pivotal to reducing churn rates and encouraging longer engagement. Focus on:

  • Interface and Playback Quality: Continuously enhance the user interface and playback quality to provide an enjoyable experience. Ensure that navigation is intuitive, and content loads swiftly.
  • Content Discovery: Implement advanced content recommendation algorithms based on user preferences and viewing history. This keeps users engaged and encourages them to discover more content.
  • Visual Appeal of Cover Art: Invest in well-designed and aesthetically pleasing cover art for each title. High-quality visuals not only enhance the user experience but also elevate the perceived value and quality of the service and its content.

3. Leverage Audience Segmentation and Targeting

Utilize data analytics to segment your audience based on demographics, behavior, and preferences. This segmentation empowers you to deliver personalized content and advertisements, boosting engagement and revenue potential. By tailoring the viewing experience to individual preferences, users are more likely to spend more time on your platform and engage with advertisements that resonate with them.

4. Minimize Workflow & Operational Costs

Operational efficiency is a cornerstone of cost reduction. Consider the following strategies:

  • Cloud-Based Infrastructure: Embrace cloud-based solutions for content storage, transcoding, and delivery. Cloud services offer scalability and cost-effectiveness compared to traditional on-premises solutions. This reduces maintenance expenses and enables you to adapt to changing demands without significant upfront investments.
  • Streamlined Workflows: Optimize content workflows, metadata management, and rights management. By reducing operational inefficiencies, you can streamline content delivery processes and minimize wasteful spending.

It is highly important to continuously monitor and analyze performance metrics to refine your strategy and stay ahead in the competitive OTT landscape. Remember, a well-executed monetization strategy not only reduces TCO but also propels your platform towards long-term success. Video businesses must diversify their monetisation strategies to maximise revenues in a rapidly evolving market. For commercial broadcasters, revenue generation is a goal. A well-crafted frontend from a vendor, with a track record of success, may provide a safer bet for monetisation, either through ads or subscriptions. 

Discover Accedo One: Ready to streamline your OTT costs and strategize your monetization effectively? Accedo One is your trusted partner. With our SaaS solution, slash unnecessary expenses and gain invaluable insights to choose the most effective OTT monetization strategy. Dive deep with Accedo One and elevate your streaming revenue streams. 

Meet us at IBC 2023 in Amsterdam this September 15-18th. Let’s discuss how we can help you elevate your OTT revenue streams with Accedo One. Book a meeting here. 


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4 steps to a Cost efficient and Effective OTT Monetization Strategy