When it comes to choosing the right monetization model for your video business, there isn’t always a clear cut answer. In fact, you probably won’t maximize your potential revenue if you only use one of the primary video monetization models we covered in part one of this series —Advertising (AVOD), Subscriptions (SVOD), and Transactions (TVOD).

That’s why many successful video businesses are turning to a hybrid model. This way, they can maximize revenue with a combination of two or more monetization models.

There are challenges with all of the primary models that make it difficult for content owners to rely on a single monetization model and make a sustainable amount of money. Advertising (AVOD) is only successful with a large audience that generates enough views to be profitable. There will always be viewers that unsubscribe with SVOD and it takes significant marketing efforts to continually add more subscribers. Finally, there is no guarantee of future revenue with the one-time transactions of TVOD.

With a hybrid model, these challenges are diluted with additional avenues for making money. The combinations of monetization models are endless and require some trial and error to find out what works best for your business. Here are a few examples:

If you primarily have a subscription video business, you can add TVOD to the mix and offer the option to rent or own content of your choosing. This way, viewers can get a taste for your content before committing to a subscription.

Consider adding AVOD into the mix as well, and have limited advertising on top of your subscription content. This enables you to monetize while letting viewers preview some of your content for free.

Maybe you primarily have subscription video business and use TVOD to make money on your live streams. There is no reason why you can’t have advertising or even brand sponsorships incorporated into your transactional live streams.

Think outside the box and consider all your options to make additional revenue. For example, brand sponsorships are a popular form of advertising for many podcasts and can easily be incorporated into your live stream. If your content is educational, why not take a note from PBS’ book and ask for donations—apps like Patreon can help you out with this . If you don’t have merchandise for you fans to purchase, it’s an easy way to make more money that your fans will surely appreciate.

In order for a video business to be successful, it’s important to have your content available on all the platforms and apps your fans use. If you only stream your content on YouTube using advertising to make money, you are missing out on revenue. It’s wise to avoid relying on a single distribution channel, just like it’s wise to use multiple monetization models. Have incentives for your audience to consume your content across all your channels including your website, your OTT platforms and YouTube.

Hybrid monetization is how most large entertainment brands make the most of their content including Netflix, Hulu, and Apple TV. However you don’t have the numbers of these three brands- hybrid models are just as applicable for smaller entertainment brands with more niche content.

For example, StarTalk Radio offers science-based content and they use a hybrid model to make money. They leverage all the models— AVOD, SVOD, TVOD and donation on a variety of different channels including their website, YouTube, iTunes and more. Not only are they making money on their content, they also sell branded merchandise for fans.

The hybrid model is one of the most effective ways for video businesses to maximize their revenue. Start thinking creatively about additional ways to monetize your content to help your video business grow!

Hybrid - How to Choose the Monetization Model That’s Right for Your Business: Part 2 [2021 Update]

Hybrid - How to Choose the Monetization Model That’s Right for Your Business: Part 2

Working in a fast-paced startup can be a heads-down endeavour.

At Zype, we know that helping customers solve problems and perform better is the best recipe for success. And, like many fast-growing companies, much of that focus centers on new technology.

However, we know that helping customers often extends beyond just our platform. Many times we find ourselves guiding our clients as well — helping them navigate continuous change and aligning the organization for success.

Recently, we stepped back and looked at common challenges facing not only our customers, but also the industry at large. We asked ourselves: how can we help improve the way video and business teams work together? Through our experience and customer engagement, we saw that many legacy models just don’t cut it anymore. In the new era of premium video as a mission-critical, strategic initiative, engaging with customers — the right customers — when and where they want content is everything.

As part of this process, we also looked at other industries that have transformed themselves. Many have followed and adopted Lean-inspired processes to streamline work and ensure each stage of the product/service life cycle is connected. Business goals and priorities were clearly defined and shared to drive every aspect of a products creation and delivery. Movements like Lean Manufacturing, and in the software space, Agile and DevOps, create greater efficiency in development and production, and enabled incredible delivery speeds.

We believe these approaches also can benefit the streaming video industry, by connecting video business and operations.

Based on our observations and experience, our team at Zype created a new process framework that is freely available and open to the industry — VidOps.

VidOps is a set of guiding principles for video-centric organizations. VidOps is not a Zype product or service, but an open and freely available framework to connect teams, tools and processes to help cross-functional teams deliver more value to customers at a faster speed. The framework aims to unify video developers, technical assets, business stakeholders and content operations work into a single workflow.

VidOps is all about breaking down silos between creative teams, production, engineering, marketing, finance, sales, and creating an interconnected workflow. This means better communication, collaboration, automation and working together toward a shared goal and vision set by the business as a whole.

Though introducing a new set of principles and applying new methods can absolutely be difficult, our industry has the benefit of being relatively young, and agile. That gives all of us in the video industry an advantage. We understand that change is vital to our survival, and VidOps aims to address the latest trends to help us perform better and deliver better value to customers..

At Zype, we believe that as viewer trends continue to move toward OTT and alternative video consumption approaches expand in popularity and scope, the potential for complexities and siloed teams will continue to grow. The VidOps framework focuses on helping teams work better together and streamlining workflows, to ensure video teams meet the strategic objectives they have before them.

Want to learn more? We’ve written a white paper diving deeper into what VidOps is, why we need it and  practical steps you can follow to connect teams and workflows.

Also, VidOps is meant to be an open and collaborative effort, so please reach out to me with your feedback, as we welcome your input to help move VidOps forward.

Introducing VidOps: An Industry Framework for Connecting Video Business and Operations

As consumers realize they no longer need to pay for cable TV, where they likely pay for channels they never watch, the cord-cutter club is growing. Cutting ties with cable giants and finding entertainment through platforms like Netflix, Roku or MLB.TV, customers are honing in on exactly what they want to watch and paying for just that.

However, advertisers may have a harder time fitting into this new era. In years past, advertisers benefitted from limited choice. Consumers were not able to select the channels in their cable bundle and they weren’t able to skip ads — but now they can. It truly is the age of the consumer.

As Netflix has shown us, customers are willing to pay a low monthly subscription cost to binge on episode after episode of “Orange is the New Black,” without interruption — or with Hulu and others— minimal and targeted ads. And even if a customer is subscribed to multiple OTT services, those online video bills often still add up to less than what their cable company was charging for 400 channels they will never watch.

How can brands jump in and take a piece of the OTT pie?

Right now all signs point to data and analytics. Whereas linear TV audiences bought bundles, OTT audiences buy what they like. The OTT model captures valuable data that any brand would love to have and that is: What are people interested in? If advertisers know this, digital ads can be targeted and tailored for the audience. For example, fourteen-year-olds no longer need to sit through car insurance ads.

As online behaviors continue to be tracked and analyzed, ads become more relevant to the consumer.

Premium video providers play an important role, however, in bridging this gap between viewers and brands. Ultimately it is up to video providers to work with advertisers here. Why? Because it’s advantageous to both parties. As video providers track viewer’s engagement, those insights are gold for brands.

Video platforms like Zype make this possible by offering advanced analytics to provide deep insight into the viewer’s habits and behavior.

To learn more about tracking video engagement and the opportunity for advertisers, take a look at these resources:

Watch: Engaging audiences on Connected TV, a free webinar hosted by Tapad and Zype.

Learn: How to track video engagement using the Zype platform.

The Brand Opportunity for Cord-Cutting Audiences

Email is a critical marketing tool for any video business. Not only is it one of the most effective channels to drive new paid subscriptions, it’s also key to engaging and retaining your current subscribers.

You may have heard that you can now connect Zype with Zapier, but did you know that you can use this integration to automate email distribution to your consumers?

Zapier is a nifty online automation tool that connects the apps you use every day like Gmail and Mailchimp. It works by setting up triggers that automate repetitive tasks between two or more apps. For example, when a consumer signs up on your website, it could automatically add them to your email marketing list in Mailchimp and send them a “welcome” email.

Zapier is super powerful because it’s compatible with all different types of apps. We’ll show you how you can use it to connect Zype to your email service, but there’s a lot more that you can do.

You are busy running your video business. Syncing your email marketing with Zype and Zapier will help you accomplish more, in less time and with less effort. Voilà, you have more time and energy to spend on the stuff that really matters, creating and distributing awesome content for your audience.

Here are a couple ways you can streamline your email marketing with Zype’s Zapier integration:

Automatically sync new consumers and subscribers in Zype with your email distribution list

When a new subscriber signs up, automatically send a welcome email

When a consumer makes a purchase, trigger a “thank you” email

When a consumer signs up for a trial, trigger  a series of emails designed to convert them into paid subscribers

If a consumer “abandons cart”, trigger a series of emails and offers to capture their purchase

When a subscriber cancels, trigger a “sorry to see you go” email with a special offer to reactivate their subscription

We’ll use MailChimp as an example, but whatever email tool you’re currently using, it’s likely that Zapier has an app for it. Zapier connects to all sorts of different email apps including Constant Contact, MailerLite, GetResponse and many more.

A Zap is a link between two apps on Zapier made of a trigger and corresponding action. When the trigger event happens, Zapier automatically makes the action happen.

Currently, you can select from the following zap triggers from the Zype platform:

Stay tuned, because we’re still in beta and we’ll be adding even more Zapier triggers for Zype soon.

The first step is to create a Zapier account.  If you’re not already using Zype, you can schedule a demo to get started.

Now, create your free Zapier account by going to their website and entering some basic info. With a free account, you can create five Zaps (or connections between apps). If you need more power, you can upgrade to a paid account.

Once you have your Zapier account ready to go, you’ll need to request access to the Zapier webhook key on Zype’s Integrations page. If you are a network or premium user, you’ll automatically have access, but we’ll get back to you shortly to confirm your access to Zapier either way. You can find the full instructions to unlocking your Zapier webhook key in the help center.

Once you have your webhook key, you’re ready to start connecting Zype to all your other apps by creating your first zap. Click here to go to Zype’s app in Zapier.

It’s time to experiment building Zaps of your own! To get started, follow our support doc that shows you how to add new consumers to a mailing list in your email marketing software (like MailChimp) every time a consumer is added to your Zype account. The possibilities are endless!

One thing is certain, email automation is an essential tool for your video business, whether you are:

Re-engaging inactive subscribers that are at risk of canceling their subscription

Wooing back subscribers that have canceled

Reminding trialing customers to purchase a subscription

Recapturing consumers that "abandoned cart"

Keeping your email subscribers informed of your new and upcoming content

Zype + Zapier makes staying in touch with your consumers easy, painless and automatic! As a result, you'll have more customers that stay longer because they're happy with your video content and streaming service.

How to Automate Your Email Marketing (and so Much More) With Zype’s Zapier Integration

One of the greatest advantages of going direct-to-consumer is the power to choose how and where you sell and distribute your video. Not to mention that eliminating any distribution middlemen means that ALL revenue your content generates goes straight into your pocket. Cha-ching.

Will you launch a subscription service? Integrate ads? Or sell and rent your videos? It’s up to you. Whether making money is your primary objective, or just a means to an end so that you can continue creating content your audience loves, it’s important to figure out which monetization model aligns best to your business and goals.

Your content and audience are what drives your video business. So, in order to determine the most effective monetization strategy, it’s important to consider your audience and how they consume your content. Where are they watching? And are they willing to invest their time and money?

We created this monetization guide to help you evaluate all your money-making options and determine the best way to maximize your content’s revenue. Get started by asking yourself the following key questions:

1. What’s the goal of distributing content?

It’s important to start by mapping out your goals. If video is your primary business, obviously generating revenue is pretty high on the list of priorities. But different monetization models can help drive other valuable results as well. For example, some content owners choose to keep their content free on certain channels as a way to build their audience. Sometimes making money isn’t the main goal, but an avenue to drive audiences to more profitable outlets ( e.g. e-commerce website or ticket sales).

The number of eyeballs viewing your content is one of the key factors in choosing an effective monetization model. Does your content have a broad focus and consistently attracts mass audiences (+300K)? Advertising is going to be your best bet. If your content has a narrow focus and attracts a smaller, yet highly engaged, audience then subscription-based monetization will work well for you. If your audience is under the threshold of 150K, it may be too early to go direct-to-consumer.

How available is your content? Do you own a library of legacy content that your audience can’t find anywhere else? Are you producing original content on a regular basis? Do you live stream sporting events or interviews? You have to give your viewers a compelling reason to invest their time and/or money in your content. Figure out what sets your content apart, because the more exclusive and unique your content is, the more you can justify charging.

You may have amazing original content, but it doesn’t mean anything if you don’t have any viewers that care to watch it. It’s important to gauge the loyalty of your audience as you decide how you’re going to monetize. If you have an actively engaged audience that has a strong appetite and passion for new content, your viewers will probably be willing to pay a monthly subscription fee. On the other hand, if your audience consists of first-time or occasional viewers, then you’ll be better off using advertising to make money. Maybe your viewers are super passionate about individual titles or series, you’ll probably want to consider a transactional approach that allows viewers to buy or rent what they came to watch.

5. Do you have budget and resources for marketing?

Whatever your monetization strategy is, you won’t make any money if people know that your content exists. Marketing and promotion are often overlooked, but critical to success. It’s the key to building an audience, driving brand awareness and maximizing your business’ revenue. In order to effectively market your services and content directly to consumers, you have to be willing to roll up your sleeves and dedicate the time, resources and budget that’s necessary.

It’s clear that your content and audience play a key role in developing an effective monetization strategy. Now it’s time to download your free copy of ‘ The Fundamentals of Video Monetization’ and discover which monetization model will generate the most revenue from your video content.

5 Key Questions: What's the Most Effective Direct-to-Consumer Monetization Strategy for Your Video Business?

Consumers are cutting the cord and replacing traditional pay-TV services with on-demand streaming services. There’s a simple reason that companies like Netflix, Amazon, and Hulu are winning— they know how to be a customer-centric business.

What do customer-centric businesses do differently?

Instead of having a transnational mentality that drives short-term value, customer-centric businesses actively build relationships with customers. They’re smartly focused on keeping their customers for the long term. They don’t need sales tactics to convince customers of what they need because they deliver products and services that their customer already demands.

You may have been sold on the number of channels and options of that cable package, but what’s the value of having 1000 channels when you only end up watching 20? Now there is the option to have recommended content based on your viewing habits, on-demand, on any device, without ads, without commitment AND at a fair price? Sold! That’s what customer’s *actually* wanted all along.

Customer-centric businesses keep their customers happy by focusing on their needs and developing long-term relationships. Happy customers are loyal customers. Not only do those loyal, happy customers continue to use and pay for your service, they also go tell their friends they should sign up too. This means more customers and more revenue, over a longer period of time. A customer-centric business approach drives long-term value and for long-term success.

 How can video business take a customer-centric approach? 

It’s really simple, it’s all about focusing on your audience and keeping them happy so they stick around for the long-term. The best part is it doesn’t have to cost you a dime, you just need to adjust your mindset.

The power has shifted from the content distributors to the content consumers. As a content owner, your business wouldn't exist without the support and viewership of your audience. Acknowledge the role that your audience plays in your business and express your gratitude. Ask them what they want and listen. Take the time and spend the money to go the extra mile for your most passionate and loyal fans.

Your fans want to feel connected to your content and brand, many audiences today want to feel like they are a part of the action. Social media is an incredible marketing tool, but it’s also a great way to engage directly with your audience. Become a central part of your audience’s online community - ask questions, respond to comments and engage in the conversation.

What sets your brand and content apart? Find your own unique voice and personality and don’t be afraid to be yourself, that’s why your audience loves you. Communicate openly and honestly with your audience and always be authentic. Don’t hide behind the camera. Take your audience behind the scenes of your content and even day-to-day life. It will  Your goal is to build a long-term relationship with your audience, you must be genuine. You can’t win them all, so don’t use misleading sales-tactics to gain a short-term customer.

Your audience provides you with a treasure trove of data, USE IT. It’s the secret to discovering what your audience wants. Technology empowers content owners to know everything they need to know about their audience and how they are engaging with your content. Dig into the data and look for trends. What content is generating the most revenue? What is your strongest audience segment? Analytics are powerful tools that will help to inform your future content and business strategy.

Your customer’s needs and demands will constantly evolve and change. Your service and content must have the ability to adapt, or you’ll get left behind. This also requires giving your audience options - not every viewer is willing to pay for content, so provide free, ad-supported version of your content. Where is your audience watching? It’s important you support the devices that your audience wants to use. This may change over time, and that’s okay. Content owners will grow and learn alongside their audience.

Learn more about taking a customer-centric approach for your video business, enroll in Zype U’s Content Engagement course here>>.

How Content Owners Can Drive Long-Term Value for Audiences

Customer-Centric Video Businesses: 5 Ways Content Owners Can Drive Long-Term Value for Audiences

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Hybrid - How to Choose the Monetization Model That’s Right for Your Business: Part 2 [2021 Update]

Introducing VidOps: An Industry Framework for Connecting Video Business and Operations

The Brand Opportunity for Cord-Cutting Audiences

How to Automate Your Email Marketing (and so Much More) With Zype’s Zapier Integration

5 Key Questions: What's the Most Effective Direct-to-Consumer Monetization Strategy for Your Video Business?

How Content Owners Can Drive Long-Term Value for Audiences

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