How Do OTT Platforms Generate Revenue in 2023?

An OTT platform serves as a video monetization platform for businesses. Along with that, it provides viewers with new ways of content consumption and brings other benefits. People are switching from traditional television to video streaming platforms for multiple reasons.

Customers appreciate that OTT video streaming services have rich content libraries, operate on multiple devices, and allow them to watch videos whenever and however they want. Moreover, video streaming platforms are usually more affordable than traditional television.

Viewers switching to online streaming services provide opportunities to reach more people and share their content with companies and organizations. Now, each business can create a streaming app or website and generate revenue.

Experts predict that the number of users and overall industry revenue will instantly increase. Do you want to create an OTT platform? Let’s observe how you can monetize your content.

Revenue-Generating Models in Video Streaming

Multiple monetization models are available for a content provider with the right OTT solution.


Popular streaming services like Netflix and Hulu benefit a lot from SVOD (subscription-based video-on-demand) monetization model. They have a huge content library and sell access to it on a subscription basis.

Subscriptions are convenient for viewers. Platforms opting for SVOD don’t require long-term contracts to sign-up. A subscription can be canceled at any time.

For companies, the SVOD model generates recurring revenue. It is a steady stream of income from regular customers.


Currently, the video streaming market is adopting an AVOD (advertising-based video-on-demand) model. AVOD platforms offer varied content and include ads in playback. The main benefit is that these services are mostly free of charge.

Viewers appreciate AVOD streaming services for the ability to access a wide variety of videos without having to purchase them. Along with that, a business makes money through advertising.

A content provider offers space to advertisers. Due to targeting, ads can be shown to viewers who are really interested in the product or service advertised. Ads can be skippable or non-skippable – it depends on the configurations a provide sets.

AVOD has already captured a huge video streaming market share. The number of AVOD services is growing as well as the number of their viewers.


The market of TVOD platforms has grown greatly in recent years. The growth is caused by the increasing number of content creators producing high-quality videos, higher internet speed, and the operation of services on different platforms and devices.

TVOD platforms allow viewers to purchase one single piece of content. They pay for videos they want to watch instead of subscribing to a service. These services generally offer a variety of content. So, viewers can find something to watch using them.

TVOD providers are usually divided into two types: EST and DTR. EST (electronic sell-through) allow customers to pay once to get unlimited access to a video, while DTR (download to rent) offers users to pay a fee, rent a video for a fixed period of time, and then return it.

#4 Hybrid

The hybrid monetization model allows content providers to monetize their content in multiple ways. It is usually a combination of several revenue-generating models described above.

For example, a provider creates two groups of content: one is available on a subscription basis, and the other is Premium requiring an additional fee.

Hybrid helps reach a wider audience.

Final Thoughts

These are the widely used revenue-generating models. The choice of which one to choose depends on the type of service and your target audience.

OTT services are in great demand among viewers. Due to this demand, they are growing rapidly. Experts expect them to continue growing and bring more revenue globally. Join!