How OTT (over-the-top media service) platform earns money?


Hey, do you know how OTT platforms earn money? Before this, you should know what an OTT platform is? Isn’t it? 

In India, there are so many OTT platforms that are streaming videos via the internet. These platforms can be known as thieves of theatres. It is so because these platforms crash the popularity of theatres. Even, amid the coronavirus pandemic, these platforms grew their business because amidst the crisis this was the safest way to entertain. But what do you think, will it trend for long? Let us clear all possible questions regarding OTT platforms. 

What is the OTT platform? 

OTT stands for Over The Top which provides media services. It plays a great role in media by providing various entertainment shows platforms. This allows users to see or stream videos by using the internet. It does not need any cable connection. There was a time when cable TV was very popular. But nowadays, today’s generation does not need any cable connection because they get more on OTT platforms than the tv cable. No doubt, these platforms have stolen the popularity of theatres. People prefer to see it online rather than going to the theatres. 

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How OTT platforms earn money?

#1. Through subscription

There is more traffic on these platforms so people get subscriptions to watch the movies. So, many users buy it from where it earns and invest to get content sources. 

#2. Advertisement pages

There are so many ott platforms that are free and some we get after getting the subscription. While watching we get advertisement pages. So those people pay to these OTT platforms for displaying ads. 

#3. Buy or rent option 

In youtube, mostly we see this option below the movies. So there we can pay for buying any particular movies. 

These were the sources from where OTT platforms earn money. They use this money for buying some other content from the producers. If not, they make the content itself by investing. 

Where did these platforms invest? From where does it get content sources?

It pays to the producers.

Suppose, any movies come to the theatres then OTT platforms talk to the producers to stream them on their platform. They take the rights from the producers by paying them. So, here, these platforms invest and get the content source. They buy online streaming rights from the producers. 

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Buying a complete movie. 

Secondly, it invests to get a complete movie from the producer. Like, in pandemic we have seen that ”Dil Bechara” has streamed on Hotstar directly despite theatre. So, these platforms buy the original movie from the producers by paying a complete amount for the movie. 

Making and investing for own movie

In these platforms, we see such as amazon originals, NetFlix originals, etc. In such streaming, these platforms invest themselves in the movie. They prepare the content and work accordingly. 

Some OTT Platforms in India

  • Amazon Prime Video
  • Netflix
  • Disney+ Hotstar
  • Voot
  • ZEE5
  • JIO TV
  • Big Flix
  • Sony LIV
  • MX Player
  • ALT Balaji
  • Eros Now
  • Arre
  • Sun NXT
  • Shemaroo
  • Airtel Xstream
  • Adda Times
  • VIU
  • Vodafone Play
  • TVF Play
  • MUBI