Six Types of Revenue Models That Grow Your Video Content Revenue

OTT platforms have been a big revolution in the segment of entertainment as they are much more than just satellite dishes and cable TVs. Today viewers are not dependent on broadcasting anymore as they can watch their favorite movies and TV shows whenever they want and from wherever they want.

This has all become possible because of the Over The Top platforms like Netflix and Amazon. The OTT concept also opens doors for those who want to get their content streamed and make money from it.

There are many such platforms where you can put your content, choose a revenue model, and earn every time your audience streams your content.

Now, when it comes to revenue models, these are ways by which you earn for getting your content or videos streamed. Here we will discuss deeply these revenue models or Video On Demand models so that by the end of this article, you will have a fair idea about choosing the most suitable model for you.

6 Types Of VOD Models

Subscription Video on Demand (SVOD)

Let’s start with the most common type of earning method that is used by many big OTT platforms like Netflix and Hulu. As the name sounds, the viewers pay for a subscription which lets them stream the content for a specific period from a specific kind of device.

For example, Netflix allows its users to choose the kind of device on which they want to stream their content. And accordingly, the platform charges them. It also lets them choose how many people can stream the same content at a time, and accordingly, it sets the pricing.

Now, this method works for Netflix because they bring the content that is most recent and being viewed by millions of people in the world. Plus, they have a giant library of content that includes Movies, TV Programs, and all kinds of series. If you also think that you have exclusive content to put on an OTT, you can earn significantly by using this method.

Transactional Video on Demand (TVOD)

TVOD also known as Pay Per View is a revenue model that enables the viewer to buy or rent a piece of content such as a movie, a web series, or other video content. It works the same way as the rental stores we used to visit to have DVDs on rent or buy them.

With renting, you allow the person to keep the content for a particular amount of time such as for a week. Viewers can rent or buy content from you and stream it whenever they want. Once the rental period is over, the viewer needs to rent it again if they want to stream it again. 

You can adopt this revenue model if you upload some special events or sessions that your audience will be interested in. This method of earning works best if you do live streams or other sporting events. You can attract your audience to stream via your channel by offering them discount prices.

Advertisement-supported Video on Demand (AVOD)

AVOD is seen as the most popular video monetization model since it allows viewers to stream content without making any payment. Free streaming also attracts more traffic than when you expect the viewers to pay. There are many streaming platforms and people do not want to pay for every single one of them. Hence when they find a good streaming platform where they don’t have to pay, they tend to stick to it for longer.

In this kind of revenue model, you run ads on your videos that the viewers need to watch, and you earn in return. Take YouTube for example which lets the viewers stream the content where they also have to watch a few ads in between.

Hybrid VOD

A hybrid model is the combination of two kinds of video monetization methods. A hybrid model can be a blend of SVOD and AVOD or SVOD and TVOD. This means that the subscribers can pay the subscription fee and they can also rent out the additional content. 

Many platforms follow the hybrid model and they allow the channels to have separate content for subscription and renting. Amazon Prime is an excellent example of the SVOD and TVOD revenue models. They have a separate section of content that is available to rent out and a separate section that is available on subscription.

Hulu also follows the hybrid model where they let the viewers pay a lower fee for watching an ad; they keep it ad-free for the premium plans.


Other than these revenue models, donations also open ways to earn from your subscribers. YouTube can be seen as an example of this earning method as it also performs as a crowdfunding platform. Fans of a channel can make donations to help their favorite YouTuber and they can access the special services in return such as a Q&A live video or some bonus content. GUDSHO is a streaming platform that allows channel owners to earn from donations.


Many platforms allow you to advertise your merchandise and earn every time a fan or subscriber buys from you. You can sell t-shirts, caps, stickers, bags, or some limited-time editions and monetize the video content of your channel. If you have a significant number of subscribers, this can be an even bigger way than ads to earn revenue.

For example, if you have a Yoga channel, you can sell Yoga pants, customized mats, and other fitness gear to your viewers.

Additionally, you can earn from sponsorships that usually become possible when you have a great fan base. Brands might contact you directly or you can contact the companies and ask for any possible sponsorships. You can charge from $10 to $50 per 1000 views.

Wrapping Up

SVOD, TVOD, and AVOD are the well-known revenue models that are available on most OTT or VOD platforms. When it comes to choosing a specific one, it depends on the kind of content you provide to stream.

If your video library is huge and if you upload trending content, then you can opt for SVOD. Those who want to stream live sessions on their channels about sporting events and similar matches can go for TVOD.

If your content is more general and you want to attract more traffic, opt for AVOD and earn from running ads.

If you have signed up on a platform that allows donations or running merchandise, you can earn from these methods as well. First, determine your audience and the kind of content you will offer, and accordingly, you can choose the revenue model.

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