Video-streaming services or OTT platforms have witnessed massive growth in recent years. But how do they make money? Through three models--SVOD, AVOD and TVOD.
In SVOD (subscription-based video on demand), users pay a fixed fee to access the entire content library that could include movies and television shows. In AVOD (advertising-based video on demand), users access the content for free but they must tolerate advertisements. Meanwhile, TVOD (transaction-based video on demand) offers individual shows or movies to consumers on sale or rentals.
Some services such as Netflix strictly follow one business model, others such as Disney+ Hotstar, and Zee5 use a hybrid of these models.
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