All you need to know about Pay-Per-View OTT monetization

What is Pay-Per-View?

Pay-per-view (PPV) streaming, also known as transactional video on demand (TVOD), is a video monetization model where users pay to access individual pieces of content. This model is akin to renting or buying a movie at a store, or purchasing a ticket for a virtual event. PPV streaming is different from subscription-based models like Netflix's, as it allows users to pay for only the content they wish to watch. Prime Video is a notable example of a streaming service utilizing PPV, particularly for renting or buying movies and monetizing live events like MMA fights. PPV streaming offers flexible access terms, with some services providing options for either renting or lifetime access to the content.

‍

Enhanced ROI

PPV is ideal for platforms with exclusive, high-demand content. By charging for specific events or content, platforms can immediately monetize and gauge which content is most popular. This insight informs future content acquisition and helps in strategically bundling services. For instance, sports platforms like ESPN+ use PPV for marquee events, helping them identify popular sports or matches to focus on in their future offerings.

Greater Understanding of Customer Behavior

PPV's model, where viewers pay for specific content, reveals precise consumer interests. It indicates a genuine interest in the content purchased, providing clear insights into consumer preferences. This data is invaluable for planning marketing strategies and content curation, ensuring platforms cater to what keeps subscribers returning.

Simplified Payment

PPV allows fans to access specific content or events without long-term commitments. This model refines the subscriber base to those genuinely interested in the content, willing to pay for it, and helps identify the range of audiences actively engaging with the platform. It's a straightforward transaction model that reduces confusion compared to subscription services, as seen in platforms like UFC, where fans can purchase individual fights or events.

Increased Revenue Opportunities

PPV offers direct revenue generation tied to viewer purchases, which is especially beneficial for niche content providers with dedicated audiences. Unlike traditional advertising models, PPV allows providers to monetize specialized content and live events effectively. For example, sports leagues offering PPV access to live games can tap into fans who prefer to watch from home, potentially increasing revenue and building a loyal viewer base. This model's direct revenue linkage enables content providers to capitalize on specific, high-interest content.

Control Over Content

PPV gives content providers greater autonomy over their content. They can selectively choose which content to monetize and make available, an advantage for those producing specialized or exclusive content. By controlling distribution through a PPV model, providers can restrict content access to paying viewers, reducing the risk of piracy and unauthorized sharing. Moreover, PPV grants valuable insights into viewer preferences, guiding content providers in optimizing future content development and targeted marketing strategies. This control is crucial for maintaining content exclusivity and enhancing viewer engagement.

‍