It’s Time to Monetize That Video Content

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With more entertainment options than ever before, broadcasters have reached an inflection point. How can film and TV companies overcome consumers’ subscription fatigue while also providing superior viewing experiences that aren’t completely overrun by ads?

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The answer lies in utilizing a strategic mix of monetization models to entice and retain audiences. According to a new survey from JW Player, 41% of “digital-first” broadcasters are increasingly interested in exploring new monetization strategies. A further 76% of broadcasters say increasing engagement is their top challenge in the year ahead.

Driving engagement and generating more revenue go hand in glove. Here are three ways to do it, courtesy of JW Player.

Freemium Monetization Model

JW Player’s survey of OTT providers suggests that average revenue per user (ARPU) for SVOD services is 100 times that of ad-supported services, but conversion is at less than 10%. One strategy to is address this and marry reach and revenue is to provide a freemium model, and if broadcasters do that then JW Player has further advice.

This includes placing trailers from top-performing series in front of the paywall to whet viewer appetites. Content analytics should be used to understand what kind of content to highlight.

Enable pay-per-view for special events, perhaps as a transactional VOD, as another gateway to your content for potential subscribers.

Allow subscribers to select the amount of advertising they see by providing low-to-high pricing options. JW Player advises that you shouldn’t overwhelm subscribers with too many options — one ad-free tier and an ad-supported tier available via monthly and annual pricing is a good balance.

Ad-Supported Monetization Model

Consumers are increasingly price-conscious and wary of the growing number of subscriptions, which has allowed AVOD broadcasters to gain market share. According to JW Player’s survey, over a third (34%) of US households with video streaming capability use ad-supported streaming services, what’s more, connected TV ad revenue is predicted to grow 25% this year. JW Player suggests AVOD broadcasters should follow these best practices to increase revenue:

If you’re showing time-critical live content (such as sports), people are less likely to switch off during the ad breaks because they don’t want to risk missing any of the premium live content. In other words, mix VOD with Live.

Schedule proper timing for ad breaks. Broadcasters should utilize pre-roll, mid-roll, and post-roll ads to optimize revenue. For most videos, it’s recommended to include an ad break every 10 minutes, though content up to eight minutes performs best with only a pre-roll, JW Player suggests.

As viewership increases, allowing more ad networks to compete will create a diversified range of ads and increase the aggregate fill rate. Beware that repetitive ads due to limited ad availability will create a poor user experience.

Subscription Monetization Model

In 2021, consumers are subscription-wary so it’s more important than ever to focus on audience retention. SVOD broadcasters should focus on content, viewer experience, and pricing/discounts to retain audience loyalty.

For an SVOD monetization model, it’s important for broadcasters to:

Produce new content regularly. Fresh content is an essential part in keeping paying subscribers regularly engaged. Whether through series releases, live exclusives, or topical & newsworthy stories, broadcasters can both retain existing subscribers and gain new ones with an effective content strategy.

Communicate often with existing subscribers via marketing to keep the channel top-of-mind when it’s time to renew. In addition, coupons and discounts are considered one of the most effective ways for broadcasters to gain new subscribers. These can be utilized for win-back campaigns as well. Free trial memberships and tiered pricing are useful for reaching new audiences.

OTT Apps Growing

JW Player also seizes upon a way smaller, niche broadcasters can use OTT apps to differentiate themselves from the pack.

“Based on our learnings from working with some of the top broadcasters in the industry, launching a branded OTT app that successfully converts means ensuring that it’s a discoverable, flexible, and enjoyable destination for fans.”

It reports a 133% increase in distinct apps active in its own network of clients using its player from 2020-2021, driving an overall 361% increase in OTT app-based video consumption.

“Connected TV digital video viewing is nearly two times that of desktop/laptop viewing and is forecast to overtake mobile viewing. Through OTT apps, digital native broadcasters can reach new audiences where they are already primarily consuming entertainment content.”