How to Make Money From OTT Platforms and Video on Demand

April 09, 2021

By Neil Patel

As a business or marketing professional, when consumer habits change, you must pay attention. Perhaps nothing is changing more rapidly or drastically than how people consume video content.

To leverage this shift, you must first understand two of the most common video consumption methods: video on demand (VOD) and over-the-top (OTT). We cover both in this guide.

What Is Video on Demand (VOD)?

Video on demand (VOD) is a technology allowing viewers to watch video content when and where they want and the click of a button or tap on a touchscreen.

VOD is also popular because you can pause, rewind, or fast-forward content—and, unlike DVDs, you can easily start an episode from the moment you stopped it rather than searching through a menu.

In short, it gives viewers complete control of what they consume and how they want to consume it.

One of the most popular VOD services is Netflix, which started as a DVD mailing service and kept ahead of the game by adopting streaming early.

What Is OTT?

Over-the-top (OTT) is a way of streaming video and film content over the internet at the user’s request.

The primary reason for this unusual name, over-the-top, is because it goes over the tops of traditional media distribution channels and distributes content directly to the consumer via an internet connection.

OTT platforms were made popular by streaming services like Amazon Prime Video, Hulu, YouTube, and more.

VOD Vs. OTT—What’s the Difference?

One of the primary differences is the medium through which video content is delivered.

  • VOD: Video on demand involves consuming any media content that isn’t played on a certain schedule or requires a physical DVD, tape, etc.
  • OTT: This is strictly streamed content, not downloaded or otherwise stored offline, and can include media like videos and online radio programs, such as podcasts.

The other big difference is VOD can’t be live content, while OTT can, as VOD by definition can’t have a set schedule involved. However, live content can later become VOD if it’s allowed to stay online for future viewing.

OTT is often VOD, but not always, and vice versa. As you may have guessed, many platforms, like YouTube, are categorized under both VOD and OTT.

Are VOD and OTT Right for Me?

If you’re willing to put in the hard work to create a high volume of quality on-demand content, you may be wondering if VOD or OTT is right for you. Bearing in mind there is overlap between the two, here are some pros of each option to help you determine which best suits your needs.

Pros of VOD

VOD enables you to deliver on-demand content to users, which is incredibly popular among consumers. As a result, you could monetize your brand faster and easier via VOD.

This method is best suited to subscription-based businesses. For example, fitness coaches can use VOD platforms to offer monthly subscriptions for on-demand fitness classes. …read more

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