One of the most effective ways to generate revenue by producing videos is a pay-per-view monetization model. Your viewers get the chance to access content without committing to a subscription because they purchase viewership of one particular video at a time.
A pay-per-view model is one of the three common monetization models. There are also SVOD and AVOD platforms. Pay-per-view has its own benefits and drawbacks in comparison to others. Let’s take a closer look at it.
What is Video Monetization?
Video monetization platform generates revenue by sharing video content with your audience via a video streaming service. When a viewer wants to watch your video, they need to pay for access to it, which means that you receive revenue.
Video content providers use one of three common monetization models or their combination: advertising, subscriptions, and pay-per-view.
Pay-per-view is often referred to as a transactional-based pricing model. In this case, people pay for only a video they want to watch. Each video requires payment.
A pay-per-view model is suitable when viewers want to pay only for particular content. They “rent” it for a limited time or a specific number of views.
A transactional-based pricing model is especially suitable for streaming services with a not-very-rich content library. Also, services selling tickets to meetings or events can benefit from a pay-per-view model.
A subscription-based monetization model allows viewers to purchase access to the whole video library for a limited period of time. It can be a month, a quarter, or a year. The subscription is easy to cancel. However, it ensures a steady revenue stream.
TVALB is an example of a subscription-based streaming service.
Advertising-based monetization model means generating revenue by running ads on your service. Instead of payment, viewers watch ads during the video playback.
A hybrid is a combination of several monetization models described above. For example, you combine subscriptions and pay-per-view. This monetization model has variations. You can create two groups of content: available on a subscription basis and require additional pricing. Another form of this combination is allowing people either to purchase a subscription or every video separately.
How Does Pay-Per-View Work?
With a pay-per-view pricing model, you make money by charging for access to every single video on the platform. You can vary the time of access, allowing viewers to watch a rented video for a couple of hours or days. Some pay-per-view services offer people to download the video on their devices.
Pay-per-view services usually charge for a single video, special event, or access to educational content.
Make sure you are accurate when it comes to setting access and pricing of pay-per-view videos. Ensure that the access to the video is longer than the video itself. If a viewer has technical issues or wants to write something down in the case of educational videos, they will have enough time to deal with that.
Be clear about pricing so that a viewer easily understands how much they need to pay for every video. Make sure your pricing suits your target audience’s budget capabilities.
Along with subscriptions and advertising-based pricing models, a pay-per-view monetization approach proved effective for generating revenue. It has its own drawbacks and benefits. You should test it to understand whether it suits your video streaming service and audience or not.
Remember to be clear about pricing and time access to videos on your service. It is necessary for viewers to plan how, where, and when they will watch a purchased video.