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Top Five Benefits of Pay-Per-View OTT Monetization

Debarpita Banerjee Published on : 11 August 2022
Top Five Benefits of Pay-Per-View OTT Monetization


According to latest OTT market trends, revenue generated through pay-per-view will touch US$ 12.89 billion by 2027. After subscription and advertising, it is one of the fastest growing monetization models for OTT platforms. And there are multiple reasons behind the rise of PPV

Firstly, the demand for online videos is at an all-time high now. And recently, the overall revenue of the OTT industry has seen a remarkable rise. Although there is enough video content available for free, viewers are still willing to pay for quality video content. And pay-per-view lets them pay for only those videos which they really want to view and pay for. 

If you are willing to know more about this superbly flexible and user-friendly revenue model, you are at the right place! 

In this blog, we will discuss how pay-per-view works, what its benefits are, and how you can reap maximum benefits by releasing your movies on pay-per-view.


How Does Pay-Per-View Work?

The technical term for Pay-Per-View is Transaction Video On Demand (TVOD). In this mode of OTT monetization, the users need to pay for a specific video individually. Hence, if the viewer doesn’t want to pay the full-month subscription, even then the viewer can watch the movies on pay-per-view without any hindrance. 

This revenue model is not limited to movies and recorded video content only. Some OTT development platforms like Muvi allow the OTT platforms to enable PPV monetization schemes for live events and sports events too! Let’s understand it using a use case. 

Suppose an OTT platform is broadcasting a multinational sports event live. Now, there might be some users who are not subscribers of the platforms, nor they are willing to, but still, they want to watch the sports event. In such a case, they can use PPV to watch that particular event. 


What is the difference between Pay-Per-View and On Demand?

Now that you are familiar with the basic concept of pay-per-view, you must be willing to know the difference between the pay-per-view model and the video-on-demand (VOD) model of OTT monetization. Right?

No worries! We will help you understand the difference more clearly! 



In pay-per-view, the user pays for specific content at the time of watching it. Hence, they pay only when they want to watch a specific show. If they want to view anything, they will not pay anything…simple!

In video on demand, and more specifically in subscription video on demand (SVOD), the user needs to pay a fixed amount of money every month, or at a specific time interval, irrespective of their viewing behavior. Hence, you will get paid the same amount every month, even if your user doesn’t view anything the entire month. 

From a user’s point of view, it is much more flexible and attractive. Especially because, in this mode of monetization, the users know exactly what they are paying for, and hence are more willing to pay. 

Video-On-Demand is a preferred mode of monetization for the platform owners, as they get assured revenues every month. However, it might not be an attractive option for consumers in the long run. 

If you get the combinations right, you might compel your audience to come back to your platform and pay for the shows, again and again, hence achieving greater scalability for your business. 

In this mode, you need to pamper your consumers a bit, so that they realize the value of your content. It will motivate them to renew their subscription. 


Hence, though VOD is a very good option to rake in a good number of dollars, PPV gives you a better chance to retain your customers. 


Top Five Benefits of Pay-Per-View Video Platforms

As discussed above, pay-per-view video platforms benefit both the company and the consumers. Let’s take you through the major benefits of pay-per-view monetization. 


Simplify Paying for Viewers

Pay-per-view simplifies payments by leaps and bounds. The viewers know exactly what they are paying, and exactly what they will get in return. So, there is no scope for confusion, which often arises in the case of subscription-based platforms. 

And, it has similar benefits for the companies too! They can track which content got sold, and how much revenue did each content earn. It will help them track the ROI of individual content and decide the future of low-performing content. 


Map the Consumer’s Behavior Better

Trust us when we say, pay-per-view is the best way to map the consumer’s behavior. 

Now you might ask, we can track the consumer’s viewing history in SVOD too! Then what’s the difference? Well, there is a clear difference, let me explain…

In SVOD, the viewer is paying for the entire package of content together. Hence, to human psychology, they sometimes end up watching a show which might not be their favorite. But this is not the case with pay-per-view! Since the viewer is ready to pay the price for the specific content, they must have at least some interest in it. Hence, pay-per-view tells you the interest of your consumers more accurately.  


Enhance ROI

Pay-per-view helps you improve your return on investment for all your content. This is because you can easily identify the low-performing content, and fully focus on the content that is actually raking in returns for you! 


Get Immediate Payments for Your Content

In many cases, you might need immediate returns for specific content, and subscription might not let you do so!

Take, for instance, you have released a brand new movie on your platform, and need to rake in money for the same. But if you have an SVOD payment model, your viewers might not have to pay immediately, but they can still watch the movie as it is included in their subscription! 

PPV helps in such cases. You can enable the PPV option for all your new releases, and the viewers will have to pay to watch the movies on pay-per-view!


Enhance the Scalability of Your Business

With pay-per-view, you can access the preferences of your consumers, and deliver them the content which they like to view. And all these will give you instant payments on your content. Hence, with PPV, you can efficiently reduce the churn rate of your platform, and increase the scalability of your business. 


Four Tips To Maximize Pay-Per-View Benefits

After reading the benefits, you are getting enthusiastic to apply the PPV model as soon as possible, right? But, wait…slow down! 

There are certain do’s and don’ts that you must keep in mind while implementing the PPV model. Let’s have a look at some of them. 


Offer Right Bundles

If you are offering pay-per-view bundles, (want to know about PPV bundles in detail? Read here) you must be very careful when choosing the right set of movies or shows that you want to offer under the pack. 

For example, a viewer who watches all the spiderman movies might not necessarily like the hulk! So, you need to feed your viewers exactly what they like! 


Price Right to Retain Viewers

If your monthly subscription is $10 (just for example), you simply cannot sell a single movie for $8 or $9! It won’t work that way! 

You will have to decide on multiple factors before finalizing the price of content. And it’s not at all necessary that you set the same price for all your videos! You can set a specific price for specific content, depending on their demand and target audience. And most of the OTT platform providers like Muvi will let you do so efficiently. 


Offer Personalized Discounts

If one of your viewers is watching all the spiderman movies, it means that they like superheroes. But, then there must be some reason why they are not buying the other superhero movies. So, you can try giving them special discount coupons for superhero content. It might help you get better conversions. 


Set the Access Time Carefully

Many OTT platforms allow you to set the access time for PPV content. Now, be very careful while choosing the access time of the content, as a short access time might give a negative impression to the viewer. 



Pay-per-view can prove to be a very effective means of tackling the churn rate, as it provides a very good alternative to SVOD. That is why the experts predict a rapid rise in pay-per-view platforms in near future. 

If you want to develop an OTT platform that will let you implement pay-per-view monetization along with pay-per-view bundles easily, connect with Muvi today! We provide you the perfect Pay-per-view solution with variable prices for different content, complete control over access time, and much more! Start your free trial today!

Written by: Debarpita Banerjee

Debarpita is a Content Writer with Muvi. With around 2 years of experience in content creation, she has worked across industries like SaaS, EdTech, eLearning, AR-VR, and Metaverse. She believes in delivering content that can be of some value to the readers. In her free time, she likes to try her hand at website and app development.

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