This is how OTT companies earn money by showing you movies, this is how the reach is increasing. - Newztezz Online

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Wednesday, May 8, 2024

This is how OTT companies earn money by showing you movies, this is how the reach is increasing.

You must have heard about the earning of films through OTT platforms, but have you ever wondered how OTT platforms or companies that make films earn money earn money? If not then let us tell you the ABCD of OTT platform business...

An amazing revolution took place in the digital world during the Corona epidemic. The trend of OTT platform increased from city to village. People started getting their favorite web series, movies and shows on mobile only. Due to which now there was no need for him to go anywhere. 'OTT' of everyone's life in a very short time since the Corona epidemic. It has become an integral part and has made people's access to entertainment easier. Not only do they earn from this, but films and web series also earn tremendously.

What is OTT?

The full form of OTT is 'over the top'. This is a platform where you can watch web series, movies, and serials on the app itself through the internet. You get every type of content on OTT platform. There are some OTTs where you are charged for watching the content, while some are completely free. OTT platforms run with the help of internet.

Earnings are in billions

OTT platforms and companies across the world earn more than lakhs and crores of rupees from their revenue models. Talking about India only, there are 45 crore OTT subscribers from which OTT companies generate revenue of Rs 22.62 billion. According to the report of Stock Grow, this revenue is expected to reach Rs 93.67 billion by 2025 with the increasing OTT craze. But the question arises that how do they earn? In such a situation, let us know the complete ABCD of OTT earning.

This is the business model of OTT

TVOD (Transactional Video On Demand)- In this the user pays to download something from the platform. Suppose if you want to watch a web series or movie, but it is available for rent on the OTT platform, then in such a situation you have to pay money to the OTT platform to download that content.

SVOD (Subscription Video On Demand)- In this, the user takes a subscription by paying for a month or a few days and watches his favorite content. You can understand this in such a way that you can take a subscription of one month to watch the movie on that OTT platform. This money goes directly to the OTT company.

AVOD (Advertising Video On Demand) – It is absolutely free. No money has to be paid for this. However, many times promotions or ads appear in between the content. These cannot be skipped. OTT platforms also get money for these ads. This makes a good amount of money.

Multi Screen Model- This business model of earning OTT is quite simple. If a person has it, then apart from smartphone, he can watch the content as per his convenience on laptop, TV, iPad, tablet. However, multi-screen usually costs more than a single single-screen subscription.

Earning is also done like this

Apart from these methods, OTT platforms also earn from direct ads or advertisements. OTT decides when and how much it can earn by showing which ad to you. This helps in creating opportunities to build partnerships with advertisers and expand your reach and on the other hand can also improve the overall user experience for the audience.

Basically, direct advertising means delivering ads directly to audiences on any device. Direct advertising typically deals directly with advertisers or advertising agencies rather than through an advertising exchange or other intermediaries. Advertisers typically pay a fee to have their ads appear on OTT platforms, and ad placement can take various forms, such as pre-roll ads that run before the video, mid-roll ads that run during the video , or banner ads that play during the video. Appear on the platform's website or app.

Business model in simple language

Overall, the business model on OTT is very simple. First the platform spends money in creating or purchasing its content and then that content is sold by charging a fee from the viewers or users. Building an OTT platform is a very hectic process and in the business world it is a negative cash flow system. On the other hand, many platforms also provide payment systems like per week, per month, daily and annually as per the convenience of the users.

Top Streaming Platform

Talking about popular OTT platforms, prominent names include Netflix, Amazon Prime Video, Disney Plus Hotstar, ZEE5, Sony Liv, MX Player, Alt Balaji, Voot, Hoichoi and Eros Now. Whereas, if we talk about earning point of view, Hotstar is on the top, followed by Prime Video, Netflix, zee5, Jio Cinema.

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