The advent of OTT, observed some really new and burgeoning business models lately. Pay-per-view is among the most noticeable business trends after OTT made it big in the entertainment market. Many new entrants and the players of VOD platforms have already launched the Pay-Per-View model; the recent ones being ‘BookMyShow’ and ‘Vi movies & TV’.
In the US, revenue from PPV is projected to reach at US$ 1289 bn till 2027. After the subscription model, this is the most rapidly growing monetization technique. Although, online videos are in great demand and OTT saw incredible growth; viewers are keen to pay for the videos that they want to watch. PPV model becomes relevant to such users, who really want to pay for their desired content.
This blog will take you through the paybacks, functioning, and how to make the most from your videos in this yielding and responsive revenue model. There are plenty of reasons to take up the pay-per-view model and let us discuss the real motivations why it is gaining traction in every part of the world.
What is Pay-Per-View?
PPV or Pay-Per-View business monetization model is one where viewers are given the opening to watch a video, by making a one-off payment for the video access. The videos are paid in this model and are protected by a paywall. The video content can be live media content or a pre-recorded video.
In the PPV monetization option, viewers get the right of entry to videos without having to engage in a subscription package. PPV works best for sporting events like boxing, live events, new movie releases, and real-time shows, because the viewers can watch one-off events without subscribing to a whole range of channels. E.g. Wrestlemania.
To quote another example; an VOD platform is giving out a live sports event on their channel with a PPV option. The users who have not subscribed to their platform may still be able to watch the event through the PPV payment alternative.
How Does Pay-Per-View Work?
The Pay-Per-View video monetization services on OTT require the viewer to pay for a particular video that he wishes to watch. So, if they have not paid for the monthly subscription, they can still watch the content with the PPV method.
There are a range of PPV options for hosting your video content on OTT. The amount and form you charge for your PPV depend upon the type of content drastically.
Single Video Access
In the case of specific videos, decide upon a lower fare to start with. About $2 can be priced for one day or two and unlimited access can be granted at $8 also.
In the case of a special event that is a one-time affair, the charge can be based on what would have been charged if it was a personal appointment. In the events like concerts, conferences, plays, etc., the PPV charge fixed is in relation to what is the in-person charge of such an event. E.g. If the physical visit costs $50, charge around $25 for the virtual access. Normally people believe in paying less for online access.
Educational videos spread like fire during the pandemic when people turned to skill upgrades and online education systems. . The educational content, importantly, consists of a series of video courses. Prices in these cases can be based upon the market price of the course offered and also look at the competitors to cite your price.
Bank upon These Strategies to Quote the Best Price for Your Videos:
- For the viewers, keep the access time lengthier than the content time. If the runtime of the video is 2 hours, viewers must be granted at least 4 hours of access to address technical issues or any other problems while they watch the video.
- How much time of access must be granted to the viewer, should be strongly clear to the audience. The user must recognize how long they have access to the content and what to anticipate when they have access.
- Study the competitive pricing by exploring a bit about your competitors. This helps you offer value to your videos from the point of view of the users of your videos.
Top reasons why the Pay-Per-View technique is Advantageous
Here are a few heads to acquaint you with the benefits of the Pay-Per-View model.
- Simplify Payments for Viewers
PPV is an easy-to-understand structure for both viewers and the video hosts. Viewers have a clear picture of what they pay and what they get, unlike in the case of subscriptions. And the video publishers know exactly what revenue is earned from a particular video. They know what type of content gets sold and they can determine the ROI from each type of content they sold.
It is helpful in pursuing strategies for future selling. Again it gives you a clearer picture of how many viewers accessed the content and which are the low-performing videos.
- Map the Consumer’s Behavior Better
Predictability of what content the customers may be inclined to, is higher with the PPV video statistics. The facts are considerably accurate as the revenue generated by each video can be precisely measured. Since every broadcast generates revenue in this model, most revenue-generating content can be pointed out and customer behavior can also be charted.
In SVOD, consumers may be watching content that they are not very thrilled about due to the package deal, unlike in the case of Pay-Per-View.
- Boosts ROI
Like it is discussed above, it is simpler to determine what type of content performs well in PPV monetization. This helps set better strategies for the future content to be streamed and the return on the upcoming videos will be expectedly higher and unfailing.
- Prompt payments
PPV is very helpful when the owner/publisher of the video needs to pull up money immediately. While in SVOD, if a movie is released the user gets to see it as it becomes a part of their subscription. But enabling PPV for this new movie will fetch upfront returns and a firm grasp of how much it works.
- Rises The Growth Opportunities Of Your Business
Since the user preference is known in this model, delivery of appropriate content is easier. The turnover remains high with PPV payments increasing the opportunity to improve or expand this program.
Moreover, when you use the best PPV platform, scalability is ensured because more viewers can be reached with these already popular platforms. The business returns will be straight and fast against this setting.
Wrap Up Thoughts
The current Hindi cinema box office breakdown points out that movie theaters are struggling hard to pull the viewers to theaters for a watch. The streaming services instead caught the attraction since it is keeping the audience entertained. Due to this, several movie studios plan to release their movies in PPV format referring to the growth of this business. Pay-per-view is all set to see an upsurge in the coming future.
Since the churn rate is also higher in this business, it manifests into a profitable trade. Leverage this emerging business trend and partner for exquisite solutions, variable prices, close control, and security of the content. These features resolves your organizational needs and helps to increase viewership.
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