- Subscription-Based Model (SVOD): Platforms like Netflix and Disney+ charge a monthly or yearly fee, offering ad-free access to vast content libraries. This predictable revenue stream allows investment in exclusive, high-quality originals.
- Ad-Supported Model (AVOD): Services like YouTube and Freevee rely on advertising revenue, providing free access to content while monetizing through targeted ads. This model attracts cost-conscious viewers.
- Freemium Model: Platforms such as Spotify and Hulu combine free, ad-supported tiers with premium subscription options, catering to diverse user preferences while maximizing reach.
- Transactional Model (TVOD): Platforms like Apple TV allow users to rent or purchase content individually, appealing to those who prefer a pay-per-view option without subscriptions.
- Hybrid Model: Many OTT platforms, such as copyright and Amazon Prime Video, blend subscriptions with ads or transactions, ensuring flexibility for both users and the platform.
These business models, tailored to evolving audience demands, have enabled OTT platforms to disrupt traditional media and thrive in a competitive market.