Tried and tested monetisation models for live and on-demand sport content

There are a lot of questions about the best way to monetise your sport content.

Although there are various ways broadcasters can monetise video content, there are 3 main monetisation strategies used by broadcasters and OTT platforms alike.

These are Advertising Video on Demand (AVOD), Subscription Video On Demand, (SVOD) and Transactional Video On Demand (TVOD).

Of these 3, the most common monetisation model is advertising; which has been used in traditional television for decades.

This has only improved with the advance of OTT video streaming. YouTube’s ad-based monetisation model is an example of this method. Rather than paying cash for access to videos, users spend about 10 seconds of their time viewing an ad that is paid for by a sponsor.

The best ad-supported programs tailor their advertising to the target audience via keywords or custom selection.

Sports teams can also get advertising through sponsorship and direct advertising, where they can reach out to specific businesses and offer them the opportunity to reach their niche audience.

Another method to monetise content is transactional video-on-demand, or TVOD. With this model, viewers pay for each program that they choose to access. This is most commonly called pay-per-view.It is a very straightforward method giving the viewer access to a specific piece of content and nothing more.

Typically, OTT platforms offer an integrated system for transactional video access; and like AVOD, this model can be extremely lucrative for teams.

The third major monetisation model for OTT video is the subscription model. This is where viewers pay a regular fee and get unlimited access to a library of video content.

Although the name includes video-on-demand, SVOD also applies to live streaming content. For example, subscriptions to live sports packages or access to webinars from mentors or thought leaders.