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

In order to decide which video monetization model will be best for you, you must have a very strong understanding of your audience and your content library.

So let's dive into the three primary video monetization models and review a few examples of content and audience profiles matched with their best-fit monetization model.

** Note that “VOD” stands for “Video on Demand”, which essentially means viewers are able to choose what, where, and when to watch.

Subscription-based VOD, or SVOD, is a subscription agreement between you as the video provider and the viewer who subscribes to watch your content without viewing or access limits. Think Netflix. Subscribers make a monthly payment in order to have access to all of your content, and this monthly payment automatically renews unless otherwise cancelled.

This type of monetization model provides a recurring revenue stream but the focus needs to be not only on subscriber acquisition but also retention. Businesses that choose to pursue the SVOD model have to regularly update their content at specific intervals to justify a continued subscription from their audience in order to retain their subscribers.

A great way of understanding if subscription based monetization is right for you is forecasting your revenue. We've developed a powerful SVOD Revenue Forecast Spreadsheet based on new subscribers, monthly churn, costs and other important variables. Just copy the spreadsheet, and plug in your own numbers.

Download the SVOD Revenue Forecast Spreadsheet to understand how much money you can make with a subscription based video business.

Transactional VOD, or TVOD, involves a free sign up for the service but with an a la carte payment, such as purchase or rental, to watch specific content. This is similar to services that have a collection of movies, series, or sports offerings, like Apple iTunes or pay-per-view events.

This type of monetization model offers content at various prices with the goal of keeping users as repeat purchasers on their platform. Whereas SVOD is like an all-you-can-eat buffet, TVOD is more like a traditional restaurant. The TVOD pricing strategy is contingent upon the content you are offering and the amount your viewer are willing to pay.

While TVOD businesses may earn a higher revenue per view, they don’t have the same retention and revenue security built into their service as an SVOD service

Advertising-based VOD, or AVOD, provides free to watch content for viewers that is monetized through video advertising. Instead of having your viewers pay, it’s now the advertisers or ad networks who pay, typically on a per-thousand basis.

AVOD can be a popular form of monetization because it is easy to get up and running but requires audience scale to generate significant revenues.

While the other monetization models involve a retention-based sales component, AVOD requires getting as many eyes as possible. Instead of retaining paying subscribers, AVOD retention involves volume with the goal of having a consistent stream of people watching your videos (and thereby seeing the advertisements). When it comes to premium content, the AVOD model isn’t as easily justified unless that premium content is being viewed by millions.

 Which Monetization Model Is Right for Your Business? 

If executed correctly, any of these monetization models could yield significant revenue for your business. Each business model comes with its own type of maintenance or curation requirements, as well as its own strategy for growth. There are even hybrid models where customers can watch videos with advertisements for free and then upgrade to a paid subscription for full catalog access. Read more about Hybrid models in part 2 of this series.

Here is an outline of content and audience profiles that align best with specific monetization models to help you decide which might be a good fit for your video business:

Vertical networks that have focused content and either create or publish videos on a frequent basis are excellent candidates to use an SVOD model. The format is usually longer format content; greater than 20 minutes and usually closer to an hour or more in length. Live streaming on a frequent schedule with archive VOD library also lends itself to providing access to subscribers.

Content libraries where publishing is less often or static and where the content is longer, premium content can look to leverage a TVOD model. This can either be PPV (purchase) or be providing access to videos by a time limited rental. The content focus can be either focused or broad and consist of multiple genres. TVOD can be used for libraries which are smaller but still consists of longer format premium content.

Learn more about the Hybrid model and effectively maximizing revenue in Part 2 of this series.

SVOD, AVOD, TVOD - How to Choose the Monetization Model That’s Right for Your Business: Part 1 [2021 Update]

SVOD, AVOD, TVOD - How to Choose the Monetization Model That’s Right for Your Business: Part 1

Make tracking your platform usage a breeze! Zype’s Usage Report has a fresh new look that is sure to make your life easier. Diving into the report will provide a more granular view of platform usage over a specified time period, and is exportable for simplified sharing and evaluation.

The usage dashboard is broken into three metrics: transcode hours, stream hours, and paywall transactions, and includes a date range to frame your search.

Transcode metrics encapsulate total hours for content that has been transcoded or encoded (for all you live streamers out there). Stream hours metrics show the total duration of video content delivered to your audience during the selected time period; this is viewable looking at hours streamed for Live + VOD content, or looking at hours streamed for Paywall + Non-paywall content. Lastly you’ll be able to see paywall transaction metrics, which include all purchase transactions and subscribers in a given time frame.

Viewing the Usage Report will help you better gauge your platform activity, which can in turn help you strategize for the optimal import cadence, live event support, monetization setup, and more.

For example, you can easily view your first quarter paywall transactions to see if you’re reaching your goals and determine if you want to make changes on your monetization approach. You can also view the present month’s transcode hours to help plan current imports more strategically or schedule live events more thoughtfully.

Bottom line: More visibility in your usage will help you operate more efficiently.

Anything come to mind we didn’t cover? We’re here for you! Just email anna @zype.com to get in touch.

What's New at Zype: Track Your Usage

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?

All kinds of media companies and brands have not only adopted a subscription or membership business model, they’re also incorporating premium video content on their website. From media personalities such as Neil deGrasse Tyson for StarTalk, to fitness franchises like Crunch Fitness to lifestyle brands like Kin Community, many companies are adding tons of value to their customer bases by showcasing premium video content as part of their business model.

In order to be successful in today’s evolving market, all brands must operate as multimedia companies. Video is a powerful medium for marketing and engagement and provides ongoing and added value for members and subscribers across any industry.

Zype’s easy-to-use tools enable video businesses, media personalities and multimedia brands to quickly launch and monetize their premium video content directly on their subscription or membership websites. Unlike free platforms like Youtube, Zype enables content owners to host, manage and organize their video library, then publish that live and VOD content, all from a single platform. The key difference is the ownership and control Zype provides these subscription services, with the flexibility to gate and monetize video using their own branded video player on their website without any revenue sharing.

It’s easier (and quicker) than you think to get started. Here are several simple ways you can add video to your website with Zype.

The fastest approach - use Zype’s embeddables

Get to market quickly and start engaging with your audience right away. Zype’s powerful embeddable widgets are the easiest way to start streaming your premium video content to any existing website.

Simply choose the video or playlist you’d like to stream on your website, click to generate an embed code, then copy and paste that code on any page of your website. Voila. You have a monetized (and custom branded) embeddable video player that gates access to content for subscribers only.

Embeddables are very easy to implement! The best part is you can start earning revenue immediately using the integrated paywall that supports all types of monetization including subscription, rentals and purchases right out of the box.

Get detailed step-by-step instructions, here>>

Although these customizations are harder to implement than the embeddables (as in they may require some dev work), they give you a lot of flexibility and ensure your subscribers have access to content. You can use APIs to sync your current users with Zype, add subscribers right from your web player and remove subscribers when they cancel.

Check out this article for a detailed guide on how to integrating these API’s and a full list of supported commands.

The national fitness franchise, Crunch Fitness launched their subscription service CrunchLive to extend their services and give members access to streaming online workouts, anywhere and anytime. They partnered with Zype to publish their content to their website in addition to mobile and OTT apps across Roku, AppleTV and Amazon Fire TV. Since they were already using a CMS to manage their members, Crunch uses Zype’s APIs to import, manage and track their customer base right from the Zype platform.

If you are one of the 74+ million websites running on Wordpress, we’re working on a plugin so you can connect your website directly to your Zype account.  Stay tuned for the upcoming release!

The power of adding premium video to your website

The value and benefits of video are often overlooked, but extremely powerful. Incorporating premium video content into your membership or subscription website helps to provide ongoing value to your customers at every stage. Not only do your customers expect it,  but video content also helps you to attract and convert new customers, keeps your existing customers engaged for longer and reduces membership and subscription churn. Learn more about the benefits and value of video on your website, here>>.

Quick and Easy Ways to Add Premium Video to Your Subscription or Membership Website

At Zype, our clients are increasingly focused on multiple international markets or are based overseas. The great news for these businesses is that Stripe or Braintree merchant accounts are available today for companies based in 33 countries.

Stripe and Braintree are leading web payment systems that enable e-commerce payments for businesses around the world. Both firms offer merchant accounts for most countries in North America and Western Europe. For customers, Stripe and Braintree can accept payments in over 130 countries, but merchant accounts must be domiciled in specific countries where Stripe and Braintree do business today.

Below you’ll find a complete list of countries where merchants can open up Stripe and Braintree accounts, countries covered by both Stripe and Braintree, and a complete list of countries covered by Stripe or Braintree.

Set Up Stripe and Braintree Merchant Accounts in These 33 Countries

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

SVOD, AVOD, TVOD - How to Choose the Monetization Model That’s Right for Your Business: Part 1 [2021 Update]

What's New at Zype: Track Your Usage

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

Quick and Easy Ways to Add Premium Video to Your Subscription or Membership Website

Set Up Stripe and Braintree Merchant Accounts in These 33 Countries

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