Why Commercial Flexibility Is So Important To OTT Services

Miles Weaver
Miles Weaver Marketing Director

A prior blog we published looked at why it was so important to find the right monetisation model for your content, exploring the different nuances of transactional, subscription and advertising Video On Demand models, including how and why they might be used. Taking this a step further, and building on something we briefly looked at in that previous blog, it is worth also looking at why it is so important to have genuine commercial flexibility in how you deploy content.

Let’s take this as an example; you have a rich library of video content, some of it is premium, some of it less so, and you have arrangements with other content providers to make their premium content (let’s say live sport) available exclusively on your service for a limited amount of time.

Pick one commercial model that covers all that.

TVOD means locking all content behind what will likely have to be variably priced walls, potentially shielding a great deal of it from your customers. SVOD means putting all your content out there at a single price point, or tiering and hoping to incentivise more of your customers to pay extra for the best stuff (Netflix is yet to convince more than a third of its viewers to upgrade, but as always, they are an exceptional case). AVOD requires you to pull in huge numbers of viewers to ensure a you break even, let alone make a good ROI.

What if you didn’t have to settle, as has been so common in the past, for a single commercial model? What if you had the flexibility to combine multiple models within one service? With Airbeem’s platform, you can. Make some of your less valuable video content available in front of the paywall for free, deploying advertisements around it so that you can generate some revenue from videos that will be looked at frequently by potential subscribers, and didn’t cost too much to put on your service. This gives potential new customers a good idea of the kinds of content they’re going to get from your service, and shows them that you’re fair in giving some of it away for free.

Meanwhile, you can have the bulk of your content available under an SVOD package, monetising all your assets for a price that makes sense for you and your viewers. Finally, you can make your exclusive live sports available through a TVOD option, generating maximum revenue for what is likely your most expensive, but also most premium content. (Alternatively, this is where it would make most sense to deploy a tiered SVOD service that puts everything except the live content at one price point, with live events covered for a higher priced tier).

By being able to mix commercial models within your service, you aren’t locked into trying to make one model fit all content types, giving you the flexibility you need to deliver a service and pricing model that gives your viewers value for money while providing you with maximum ROI.

For more information about the Airbeem platform, or to meet with us at IBC this year, get in touch.

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Miles Weaver

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Miles Weaver Marketing Director
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