The One Key to OTT Business Model Success

What’s the pillar driving growth for some of the biggest names in OTT? We set out to find the answer with The OTT Business Model Breakdown, a new report gathering the latest industry data from giants like Amazon, Netflix, and Disney to analyze their successful (or not so successful!) strategies across the SVOD, AVOD, FAST, and TVOD models.

The 4 Types of OTT Business Models

• SVOD (Subscription Video On Demand)
  Revenue from paying subscribers.
  Pros: An efficient, familiar model.
  Cons: Vulnerable to subscribers leaving when prices increase or content doesn’t meet expectations.
  
  
• AVOD (Advertising Video On Demand)
  Revenue generated with ads.
  Pro: Easy to find new viewers.
  Cons: Ads can be a turnoff and AVOD businesses make less money per customer.
  
  
• FAST (Free Ad-Supported TV)
  Revenue generated with ads, but for linear channels that deliver scheduled programming.
  Pros: Longer viewing times and less decision fatigue. Reuse old content to create new revenue sources.
  Cons: May make it difficult to reach a younger, more plugged-in audience.
  
  
• TVOD (Transactional Video On Demand)
  Revenue from customers renting or buying videos.
  Pros: Straightforward model that can be great for big releases.
  Cons: Consistent revenue is often difficult to achieve.

We’re sharing what OTT pros can learn from these insights and what they say about the future of streaming. The OTT Business Model Breakdown explores each model; offers a chart and summary of what the biggest brands are doing; and makes predictions of what’s next for the industry, including:

• The Customer Has Control: Customers have more content choices than ever. While quality content still matters, there’s one factor that will really give them the experience they demand.
• FAST Is Growing: FAST’s streaming penetration is higher than any of the other OTT business models. Which companies are ripe for FAST?
• It’s Not Just About SVOD Anymore: SVOD used to rule. See why it’s no longer at the top and what companies need to do to expand.

This report makes it clear that while the streaming wars rage on, the industry is shifting. Companies are bundling offerings, learning from each other, and moving to more flexible OTT revenue models to reach their audience.

Together, the data shows that the key to business model success comes down to agility. Read more about the report in AdWeek and download it here.