Why a flexible OTT business model is crucial to build a lasting streaming business – Part 2
George M. Perry | November 12, 2021

This is a continuation to the Why a flexible OTT business model is crucial to build a lasting streaming business

OTT platforms thrive with flexible and fluid business models

Turning TVOD customers into SVOD customers is a worthwhile strategy for streaming platforms. SVOD customers bring in more and more consistent revenue than TVOD customers. Platforms can also build loyalty among their SVOD customers, opening the door to increasing marginal revenues through broader subscriptions or affiliated product offerings.

This interplay highlights the importance of a diversified and flexible business model for OTT streaming platforms.

One advantage over-the-top streaming platforms have compared to TV is individualizing the viewer experience. Both the fan and the platform have a hand in this. Video on demand implies that the fan can watch what he wants, when he wants and how he wants.

The platform’s success depends on how well they satisfy those wants. The technology itself helps the platform do this.

Video on demand creates a two-way stream of information: the content goes to the viewer, while viewer data goes to the platform. This allows the platform to understand their audience’s viewing habits all the way down to the individual level. They can understand the correlations between how each viewer pays for the content – their choice of the SVOD, TVOD and AVOD options – and the viewer’s other engagement and spending habits with the team or league. They can determine if subscribers are, in fact, the die-hard fans who spend the most money on merchandise and engaged year-round; if transactional viewers are really just fans of a particular player, and not interested in the team or league as a whole; and if viewers who take the advertising based model are the “snackers” who may, with targeted engagement, move through the fan funnel.

The team or league that operates the platform can then act to increase their revenue through the right combination of advertisements, sponsored content, merchandise sales, ticket offerings or any other product or service the property offers.

By individualizing the viewer experience, over-the-top streaming lets the property essentially individualize their business model for each viewer.

Over-the-top streaming connects revenue streams for a sports property

Amazon is an over-the-top platform in addition to being the “Everything Store,” and they demonstrate the crossover potential across product lines.

Jeff Bezos said “Every time we win a Golden Globe we sell more shoes.” Sports properties should apply that mindset to how they leverage video-on-demand to create flexible and integrated business models.

“Every time a highlight goes viral we sell more tickets.” “Every time we add merch to the team store we gain another subscriber.” “Each additional pay-per-view fan is a new sponsorship activation opportunity.”

Get in touch with ViewLIft to discuss how video-on-demand can help you hit your revenue and marketing goals across all product lines, by providing as much of everything as necessary to each individual fan.

Monetization models in ViewLift platform
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