Real-time video and audio broadcasting of events over the web is a professional method known as live streaming. Live streaming has become a widespread broadcasting practice, with the world moving ahead. It helps different organizations and businesses link with their viewers, even with a physical barrier separating them.
The introduction of events being live-streamed has affected and impacted the viewers on a broader aspect. Product promotions, online classes, virtual church services, wildlife screening all come under the impacts of live streaming.
Various companies can also use live streaming to upgrade and intensify communication with the audience and community associates. Live broadcasting of events and occasions helps you reach and communicate with people all over the world.If you want to become part of high-rank companies, you have to decide on the kind of video streaming business model you would like to choose. Listed below are some options that can help you grow your venture.
Transactional video on demand
It is a video streaming business model that allows users to pay a fee once to watch and download content or even rent it. From the viewpoint of subscription, it is a perfect way to access your choice of a variety of entertainment programs. You do not have to pay monthly subscriptions for the ocean of content that does not match your taste, but you can instead filter the content as per your requirements.
How does it work?
It is a cost-effective option for the viewers because they pay for what they want to see. Even on the business end, it is a very profitable model for a variety of reasons such as
- You do not have to engage in mass marketing, but you focus on a specific market to offer content
- You have to fill up your content to put across the right kind of viewers, thereby having more viewership and also increasing your profit percentage
- As you know your niche market, you can have a small library and thereby upload appropriate content
You do not saturate the viewers with video suggestions with unrelated content; instead, you will provide them content that matters to them. It becomes the primary reason why viewers will stick around, and you can make purchases by browsing your relevant catalog.
Subscription video
Many high-end companies charge one time fees from the viewers for having an unlimited exchange of content. It is a very familiar kind of business model of video streaming. Most people understand how it functions because it offers thousands of videos on one flat subscription rate plan. You have to go online to view the content, and it is not available on offline platforms. Viewers will get various platforms and videos to choose from an ocean of topics and genres.
This model favors annual or monthly subscriptions where viewers can access an unlimited number of videos and an unlimited number of times they can view them. These platforms are available for viewers, and they offer very few restrictions depending on the membership level. As such, it is a platform that has become very popular among viewers.
How does it work?
This model offers viewers easy payment options, low fees, and a membership plan to suit the budget. The familiarity of this business model benefits the providers as they derive many opportunities out of it. Since they provide autopay options, it increases the provider’s profit and becomes a continuous flow revenue stream for the provider.
As such, users want to retain the membership, and then money would roll in on a monthly or annual basis. There is immense versatility in this business model as it is an open platform when you discuss media consumption because it allows view without imposing limitations. You can combine this model with various other video streaming models for better functioning, says Eric Dalius.
Add supported video
Very similar to pay-tv practices, it has the basis on advertising partners as they provide ample funds. It is a critical way to offer content for free. Advertisers directly pay influencers and content creators on a mid-roll or pre-roll, or the post-roll basis on this platform. It is the business model that works on popularity, and it is the key to its function. If you want advertisers to pay for content, then you have to make sure that you get a large amount of viewership on your content. You must upload content that is unique and attract users to get more advertisers on your content, says EricDalius.
How does it work?
There is no doubt that people love to get free entertainment. As such, this platform has become a trendy option from other business streaming models. The trick here is that influencers only post those ads relevant to the viewers by using data analytics. Such content providers publish pertinent content to the audience without feeling the need to manage enormous data volumes.
Hybrid business model
It is a combination of all the above options for creating a business model that is unique and specific to a particular brand. You can either go for monthly subscriptions or pay per view option. A prime factor about this business model is that they can be combined and intermingled with other live streaming models. Using these models’ combination depends on viewers and the provider’s choice to get more profit and expand its reach.
How does it work?
Hybrid platforms allow users to use multiple alternatives without the need for other services to derive profits. This model is one of the best options for increasing revenue if you want to derive more profit. It is an excellent way to open your platform to a large audience. People love to know that they control all consumption of media. When you use a hybrid platform, it typically gives that. You must understand that a returning customer is the one who is a happy customer. Customers become so glad when they get to make their own choices.
Video streaming is a perfect business opportunity, and as it is never late for an entrepreneur to start. The demand for video streaming services is increasing day by day as people use multiple types of video streaming services at one time, which means new companies can attract more viewers. If you want to choose a particular business model of video streaming, you have to decide based on your budget, goal, and circumstances.
