How OTT Platforms Earn Money: OTT Revenue Models In 2023 :

OTT or Smart platforms are a medium to watch movies, web series, and other videos by using an internet connection. The best thing about the OTT platform is the ease of customization and controls. You do not require a fixed cable operator and enables you to watch the content of your choice.
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How Do OTT Platforms Work?

OTT offers media directly to the end-user, simply by transferring IP packets to ISP and uses a technology known as Content Delivery Network CDN. Right from Smartphones to Smart Tv screens the content can be watched without buffers and advertisements smoothly at their convenience.
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How Do OTT Platforms Acquire Content?
OTT platforms acquire content in two ways:

Self-production – OTT platforms produce movies and web series by gathering a crew and funding their ideas to create original content for streaming on their application.
Purchasing broadcasting rights – Here, the OTT platform buys the streaming rights from the filmmakers to showcase that particular movie or series on their application. This is mostly done to increase their content library so that more and more people subscribe to their platform.
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OTT Business Revenue Models
OTT platforms follow one of the four revenue models to make profits. Users will have to watch unskippable advertisements in the middle of their content, which might hinder the movie experience.

The popular OTT revenue models are:

SVOD – SVOD means Subscription Video on Demand. In this model, the OTT applications earn through the subscription money that is paid by the users to view the content. The subscription value changes from platform to platform. This model is adopted by online streaming giants like Netflix, Amazon Prime, and Sony Liv.
AVOD – AVOD means Advertising Video on Demand. This model allows the subscribers or users to view the content for free. These platforms earn through the Ad revenue model, where they charge brands and companies for posting ads on their platform. This model is adopted by Voot & MX Player.
Hybrid – This OTT business model is a combination of both SVOD and AVOD. In this model, the OTT platform offers both free and paid subscriptions to its users and generates revenue through both models. This pattern is followed by Hotstar plus, and Zee5.
TVOD – TVOD means Transaction Video on demand. This model comprises two steaming options that can be chosen by the subscriber as per their needs. This kind of revenue model is followed by Sky Box Office, Apple’s iTunes, and Amazon Video Store.
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How TV Channels Earn Money?
While we are talking about OTT Platforms, many of you would be wondering how TV channels earn money. TV channels earn money mainly through two sources:

TRPs - Television Rating Point
The higher the TRP, the higher the earnings.

DTH cable operators- TV viewers subscribe to the cable operators and view the content through the satellite transmission received in their Set-top boxes.
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