Let’s be honest, people can’t afford to pay more platform subscriptions, it’s a business model that is becoming obsolete, but it’s not the end!
The first step to moving to OTT 2.0 is to adopt creative pricing strategies, and to ensure you have the flexibility to execute and iterate on these strategies. Having a system to support multiple pricing models – and the ability to test new pricing models rapidly – gives subscribers more ways to engage with you, which gives your business a competitive advantage.
Freemium refers to the free version of a service. In the context of OTT platforms, the freemium model typically means content with advertisements as opposed to premium content which is ad-free.
The freemium model has been observed to be more successful than 30-day free trials. This is because customers consider it a hassle to cancel the subscription within the stipulated time when trying out an OTT platform. Our interactive OTT platform allows you to monetize your content in multiple ways.
“Several factors contribute to the appeal of a freemium strategy. Because free features are a potent marketing tool, the model allows a new venture to scale up and attract a user base without expending resources on costly ad campaigns or a traditional sales force.
The monthly subscription fees typically charged are proving to be a more sustainable source of revenue than the advertising model prevalent among online firms in the early 2000s. Social networks are powerful drivers: Many services offer incentives for referring friends (which is more appealing when the product is free).” vía Harvard Business Review.
In today’s digital era, when the marginal costs of many products are dropping, businesses will increasingly turn to the freemium model. Across industries ranging from media (where companies are forced to rely less on advertising revenue and more on subscriber revenue) to education (where players may eventually seek to monetize mostly free online courses), the model is destined to grow more attractive.
Companies can boost their odds of success by considering this six key questions:
Request a demo!