Computers and Technology

How to Set The Right OTT Pricing Strategy For Your Service

Online research stated, ‘’The OTT market was worth $121.61 billion in 2019 and will grow to $1.039 trillion by 2027.’’

The OTT platform is a hit and continues to be one with the current streaming markets demands. The reason for its huge rise is the convenience it bought to watch popular video-on-demand content. 

If you’re looking to own your OTT platform or already have one but are looking to generate revenue, then this blog is for you. 

We have covered everything you need to know about OTT’s and which is the right OTT pricing model you need to choose right away. 

Types Of OTT Business Models

1. SVOD (subscription video on demand)

The subscription-based OTT pricing model refers to viewers paying a monthly or annual fee to access the video-on-demand content on your platform. This is highly considered by viewers because viewers pay for how long they wish to see the content. They can stop or continue anytime as per their convenience. 

2. AVOD (advertisement video on demand)

Advertisement based OTT pricing model helps you monetize your video-on-demand content with the use of ads. You can also partner with ad agencies that will pay you a fee to exhibit their ad on your platform. These ads can be placed anywhere such as mid-roll, pre-roll, or post-roll. 

3. TVOD (Pay per view/ transactional video on demand)

Pay per view OTT pricing model is also referred to as transactional video on demand. Here viewers will pay money to access certain content. The time period to access the content could be anywhere between hours to a month depending on you. 

4. Hybrid

Hybrid is another growing OTT pricing model. Here you can make use of more than one pricing model for your platform. These types of models are being appreciated more because one it makes conducting payments easy and the second is it lets viewers have more options such watch fewer ads while streaming. 

5 Tips To Remember When Setting OTT Pricing

1. Identify the types of content you’ll offer

Based on the content you will offer, set your OTT pricing model accordingly. For instance, if you have certain content that requires only a one-time watch, then pay per view model suits you. Similarly, if you’re offering content that is in the form of a series, then a subscription-based pricing model would work better. 

2. Understand the operational costs you’ll need to pay

When creating a top OTT platform, there are multiple operating costs that you need to cater to such as:

  • Investing in an OTT solution platform
  • Investing in multiple devices
  • Investing in an OTT hosting platform
  • Bandwidth costs
  • Rights costs for the content you wish to show and more.

Hence it is better to calculate all the costs and then set the pricing accordingly so that you’re able to pay them all without hassles. 

3. Analyze your viewer preferences in streaming

This is one of the most crucial factors to consider when setting your OTT pricing. Before you can set any price, analyze whether your viewers will even pay for it. Maybe a few of your viewers would prefer a subscription-based model or a pay-per-view model. Based on how they wish to view your content, consider their choices and set the prices accordingly. 

4. The status of your business performance

What is the status of your business today? Is it just commencing or are you looking to expand? Based on this, set the pricing so that you have enough revenue to invest in your business growth. 

5. Cross collaboration opportunity?

Are you looking to run your OTT business alone or will you collaborate? If you’re looking to be an independent OTT business, then you require a larger sum hence you could use pricing models such as subscription or advertisements to earn better.

How To Choose The Right Content Pricing Strategy?

1. Freemium model

Freemium model refers to the process where viewers can access content for free but if they want additional features to be included then they have to pay. The freemium model is growing well because viewers can access enough content to make their decision later to opt for a premium one. 

2. Device-based model

The device-based pricing model refers to making the viewers pay based on the devices they use to access your platform. For instance, if a viewer wants to view content on their smartphones and laptops, they will pay for two devices. This is a great option as it eliminates password sharing. 

3. Time duration based model

The time duration-based model refers to making viewers pay for the content duration they are accessing the former for. Instead of using the platform, viewers can just pay for the content time they are accessing. However, in the long term, it can be confusing to keep up. 

4. Screen time-based model

The screen time-based pricing model works similarly to the device-based pricing model. Here viewers will have to pay for every screen being used to access your platform. Hence opening multiple tabs to access the content will not be allowed. 


Having an OTT platform in 2021 is a great way to generate revenue with the content you have. OTT is the future because today smartphones and desktops are no longer being used to just explore needs. They have become the hub for entertainment to be streamed conveniently. Do you know what can enhance the platform better? The use of an efficient OTT solution. Choosing such an OTT solution provides efficient features that can enhance the OTT experience such as 100% customizations, complete ownership, and much more.

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