What is PPV Streaming?
A Key Player in Video Monetization
by Johan bin Othman
25 Sept 2024
12 min read
When it comes to instant video monetization, most think of subscriptions or advertisements. However, one model often overlooked is pay-per-view (PPV), which has proven to be a significant contributor to the live video monetization landscape.
In fact, PPV alone generated $2.27 billion in revenue in the United States, making it the third-largest revenue source for streaming platforms, trailing only subscriptions and advertisements.
What is Pay-Per-View (PPV) ?
Pay Per View streaming is a business model where users pay a one-time fee to access specific live events, pre-recorded movies, or television shows. This model is highly popular for streaming exclusive events such as movie premieres, concerts, and other live occasions that aren't available for free viewing.
Consumers have the flexibility to either pre-purchase events for offline viewing or order them for real-time streaming. The core advantage of PPV lies in its direct payment approach—viewers pay exclusively for the content they want to access, typically on-demand. This model is widely adopted across various platforms, including IPTV, cable, satellite, and other on-demand streaming services.
How does Pay-Per-View (PPV) work ?
PPV users make a predetermined payment to access specific content. After the payment, they receive a unique code or link that grants access to the content. This approach is beneficial for both viewers and streaming companies. Viewers enjoy personalized, secure access to exclusive content, while companies can monetize content that holds significant value.
To protect this valuable content, PPV platforms employ strong encryption protocols, ensuring that only those who have purchased the content can access it. This security measure helps organizers and content producers maximize their revenue.
The method of charging for PPV content can vary depending on the nature of the content—whether it's live events, exclusive releases, or premium educational material. This flexibility in pricing models allows PPV to cater to diverse viewer preferences, contributing to its growing popularity.
Key Benefits of Pay-Per-View Over Other Monetization Models
Why Choose Pay-Per-View Streaming ?
There are several compelling reasons to choose PPV for video on demand (VOD) hosting. Premium content, due to its higher production costs, often commands a higher price. PPV gives content creators the freedom to charge accordingly, ensuring they capture the full value of their work.
For instance, Disney+ uses this model for new movie releases, charging an additional fee to watch premium content at home, on top of the regular monthly subscription fee.
Conclusion
In conclusion, while entering the live streaming industry without content rights ownership can present challenges, Pay-Per-View (PPV) provides a strategic pathway to success. Without PPV, significant financial investment may be required to secure streaming rights.
However, a PPV streaming platform alleviates this burden by distributing costs more efficiently through subsequent processes, making it a smart and viable option for monetizing content. Cadjin supports Multiple Monetization Models including Pay-Per-View (PPV) or better known as Transactional VOD (TVOD) or Rental Model. With the PPV model, you can sell videos, audio and documents online and charge your users a one-time-fee for accessing the same.