How to make money from video content

In today’s media landscape, there’s an important question on the top of every broadcaster’s mind: How do I make money from my video content?

Before internet connectivity and video-on-demand, the sole method of generating revenue was through advertising on linear television channels. Fast forward to 2022 and the industry couldn’t be more different. Content owners are beginning to take content monetization back into their own hands with subscription revenues, brand partnerships and crowdfunding. 

Welcome to the ultimate guide on how to monetize your content and future-proof your operations. Let’s begin.

History of Broadcasting

In the days, not so long ago, when terrestrial television was pretty much the only game in town, technology limited us to just a handful of channels.

1920-1940s – Early stages

Broadcasting began with radio stations having a regular schedule of experimental television programmes. Television broadcasts were in black and white.

1950-1960s – CATV

The beginnings of cable television and community antenna television. CATV was, initially, only a re-broadcast of over-the-air signals.

1970-1980s – Terrestrial TV

Despite decline in the USA, terrestrial television continued to be the preferred method of receiving television into the 70s and 80s.

That changed with the coming of satellite television at the beginning of the 1990s. First came analogue satellites using the D-Mac system, which made tens of channels widely available. Later came digital satellite delivery, and the market opened up to hundreds of channels. In cabled markets, the digital revolution also made huge amounts of content readily available.

This created a marketplace for content. Entrepreneurs could set up a channel by targeting an audience.

1990s – Satellite TV

Introduction of analogue satellite, which made tens of channels widely available

2000s – Digital TV

The introduction of digital terrestrial television led to putting a new plan for DTT broadcasting only in its place.

2019 – OTT 

Over-the-top media services which are streamed via the internet have become a common alternative.

PlayBox Technology’s White paper published last year shows that in Europe & North America virtually every household has access to at least one paid-for streaming service.

1/4 had only one streaming service subscription. 34% had two subscriptions, 20% three and 15% four or more.

The Pandemic 

In the same White Paper, we discovered that the amount of time spent viewing on a television, a computer and a smart device (phone or games console) is broadly similar amongst audiences.

• a quarter of respondents spend one to two hours on each platform
• 2.8% reported watching four or more hours on a television 
• 6.2% reported the same four-plus hours on computers 
• two in five of the 16 – 24-year-olds say they would rather watch on a non-television device
• online viewing and live streaming is not a generational thing

Advertising

Television remains the big player in advertising sales, despite the common feeling that most viewers now ignore advertising.

• $278 – global television advertising market in 2020 (source: IMARC) 
•  2/3 viewers –  rarely or never watch a full set of video commercials uninterrupted, with only 6% “often” doing so (source: PBT)
• 21% – Video streaming market was $50.11, but growing at a CAGR of 21% to 2028 (source: Grand View Research)

Downfalls of Television advertising

There are a few things to consider when advertising on conventional television. These include:

• Limits on the amount of advertising (example: In Europe, the general rule is 12 minutes of advertising in any hour)
• Regulations on what can be advertised (Tobacco and alcohol, fast food for children, leading actors not allowed to be in the advert)

Benefits of Online advertising

Internet advertising is the Wild West: No limitations or regulations

• Broadcasting delivers more or less the same commercials to all its audience, whereas streaming services have a closer relationship with individual consumers
• Tailored advertising is possible even in live streams, thanks to server-side dynamic advertising replacement
• Interest in dynamic advertising replacement for broadcast services

Conclusion: the future is hybrid.

The number of video streaming services is expected to grow

• Number of video streaming services is expected to grow
• Broadcasting is a well proven technology, delivering identical quality whether there is one person watching or 20 million
• In streaming services, the customer has to find it what they are looking for
• The need for guaranteed reliability and quality, together with trusted brand status, means that consumers will continue to turn to the major broadcasters for key events
• Online streaming is really not very green (It had the same CO2 footprint as air travel in 2019)
• Traditional broadcasting via playout is ideal for live events – sport, entertainment competitions and more – and for trusted news. 
• For entertainment, consumers are likely to want their access any time, any place, any device.

Where should videos be monetized: on YouTube or elsewhere?

While many content owners and creators may go straight to YouTube to try to commercialize their video material, making a profit can be difficult. YouTube employs a traditional video monetization strategy known as ad-supported video on demand, or AVOD. Viewers may view your material for free, but they must watch an advertisement first. The more subscribers and views your channel gets, the more eager marketers are to pay.

Assume you can generate millions of views every month. Even yet, figuring out how to sell streaming films online in a sustainable way on YouTube alone might be difficult. Why? Because YouTube gets a portion of your ad earnings – up to 45 percent. In reality, stations with up to 1.4 million views per month earn less than $17,000 per year.

While YouTube deserves credit for being one of the first venues to increase the exposure of independent content owners, it is no longer the only game in town for video monetization. Know that you have alternatives when it comes to deciding where to sell your movies.

Monetization Business Models

To monetize video content, there are three basic business models to select from, each with its own distinct watching experience:

• Subscription Video On Demand (SVOD)
• Transactional Video On Demand (TVOD)
• Ad-Supported Video On Demand (AVOD)

Let’s take a look at the various models and how they relate to video monetization (i.e., how to get money from monetization).

• Subscription Video On Demand (SVOD)

Subscribers to SVOD pay a recurring subscription, generally monthly or yearly, in exchange for unrestricted access to premium material as long as they continue to pay. It’s one of the most successful video monetization business models — and one of the most popular, as proven by the success of streaming services like Netflix, Hulu, and newcomer Disney+. In the second quarter of 2020, Netflix alone has more than 192 million paying streaming users globally. The worldwide SVOD industry nearly quadrupled in revenue between 2018 and 2020, and is predicted to exceed $87 billion by 2025. From 2018 through 2020, a line graph depicting the income growth of monetized video content. 

The following are some of the advantages of an SVOD video monetization model:

• A consistent source of revenue
• More time to generate content and provide value to paying users’ subscriptions.
• Subscribers may view as much information as they want, anytime and wherever they want.

• Transactional Video On Demand (TVOD)

Another method for beginning to monetize your videos is through transactional video on demand, or TVOD. With this strategy, how can you make money from monetized videos? Pay-per-video or pay-per-series programming is available to TVOD customers. There are two primary approaches to provide this service:

• Allow customers to acquire lifetime access to a piece of content for a one-time fee.
• Customers can access a piece of material for a lower charge, but only for a short period, through download to rent.

The most well-known examples include digital video content rentals through Apple iTunes, Google Play, and the Amazon video store.

• Ad-Supported Video On Demand (AVOD)

This is how to see if a video has been monetized: You know how when you watch a YouTube video (unless you have a paid membership), you have to go through an advertising before the content begins to play? That is an excellent example of ad-supported video on demand, or AVOD, a traditional way of video monetization. The AVOD business model entails the following:

• Advertisers pay to have their commercials displayed in front of your viewers, which normally appear at the beginning of the video or midway in the middle of the stream.
• Your audience may enjoy your video material without having to pay a monthly subscription price – all they have to do is watch a few commercials while they’re watching it.
• The more viewers or reach you have, the more money ad companies will give you for those eyeballs, and the more money you may earn.

Three simple ways to begin monetizing your video content

Now that you know what video monetization is and what the three VOD business models are, let’s get to the point: how to generate money with monetized videos from your current content inventory. Simply follow the easy steps indicated here, and you’ll be well on your way to video monetization in no time, whether you have 10 videos or 1,000.

1. Create your own internet video-on-demand platform.

First and foremost, develop a VOD-optimized website via which current and prospective consumers may access your content. PlayBox Technology’s OTT CMS makes it simple to start selling your video content. 

The main advantages include:

• Take full ownership of your content distribution
• Capture in-depth audience data
• Communicate directly with your audience
• Choose how you monetize your content
• Build a community of like-minded viewers
• Boost your brand awareness

2. Decide on a video monetization model.

The following step is to select an on-demand video monetization scheme. Whether you’re wondering how to detect if a video has been monetized, there are three options: SVOD, AVOD, and TVOD. What is the most effective approach to monetize videos for your brand?

3. Use OTT video apps to expand your business.

Mobile usage has increased dramatically over the last decade, and an increasing number of customers are watching video material on their cellphones. Despite this, customers are still sitting in front of the TV to watch information, despite the fact that cable cutting is on the rise. With bespoke OTT applications, you can provide your audience the best of both worlds while also monetizing your video content even further. Developing native streaming apps for mobile and TV devices may quickly convert casual viewers into paying users.