Why traditional media groups are embracing “hybrid” monetization
Part 1: Content providers are “supercharging” direct-to-consumer efforts
Media companies have not been the most innovative historically regarding monetization strategies. In fact, they have grown tremendously by applying a binary method: linear advertising and monthly membership fees. This is still used in pay TV today and has been somewhat imitated by over-the-top (OTT) streaming providers, but with more flexibility: supported by technology that has advanced significantly in recent years, subscriptions are more adaptable, and advertisements are more data-driven.
However, we are witnessing a whole new mindset to how media companies monetize their content, particularly amid the wholesale shift towards direct-to-consumer (D2C) services. As a result, new hybrid business models are quickly emerging, which involve monetization through a combination of subscriptions, transactions, fan engagement, and advertising.
The Hybrid Business Model Opportunity
A significant innovation in this field is being sparked by the use of advanced analytics, which gives advertisers better insight into their target market’s demographics, viewing patterns, preferred ads, and intentions. As a result, advertisers are choosing from various ad placements that are appropriated for specific messaging and performance goals.
This amount of flexibility and customization is simply not achievable with traditional linear advertising, which instead focuses on “push” mechanisms to promote a value proposition to as many people as possible. Advertisers no longer hope that their message reaches the correct target, thus this is no longer a viable strategy for generating consistent sales.
“At Streann, we firmly believe that hybrid business models will be the next wave of the OTT industry. This transition is being led by the likes of Netflix and Disney but it will be relevant to any kind of video provider. We are launching the industry’s first product solution that can deliver this feature to any OTT service, regardless of use case and size.” commented Gio Punzo, CEO of Streann.
D2C streaming platforms offer content owners and TV operators enormous revenue potential outside of subscriptions and advertisements. Service providers can incorporate extra revenue sources through commerce, such as ticket sales, in-app gaming purchases, and more, into their service.
Are you ready to embrace hybrid monetization models? We are ready to help!
Streann Media®️ is the world’s most innovative and interactive content creation, distribution, engagement, and monetization streaming platform. With Streann, content providers can create live streaming content and build next-generation Web 3.0 business models, with more than 150 proprietary features. Established in Miami, Florida, the company has won several industry awards for its innovations and has millions of active users in 141 geographies. For more information, visit www.streann.com.