Video Monetization Models — Finding the Right Fit for Your Content

Every website publisher knows that video is the most powerful content type out there, reaching around 92% of internet users worldwide. But beyond engagement, video is also a key driver in revenue generation — if monetized properly. The right monetization model can make all the difference, shaping a publisher’s content reach, audience engagement, and overall content profitability. So, let me summarize all the possible video monetization models, and let’s see which ones best fit different types of website publishers.

Monetizing your video content isn’t just about picking a revenue stream — it’s about choosing the right strategy to maximize profitability. From content paywalls and subscriptions to sponsorships and video ads, each model comes with its challenges and rewards.

SVOD — The Subscription-Based Model for Premium Content

Subscription video on demand (SVOD) allows users to access your videos anytime for a recurring fee, making it ideal for publishers with exclusive, high-quality videos that audiences are willing to pay for regularly. It offers steady revenue and fosters strong audience retention. However, SVOD works best for large publishers with a variety of premium content at their disposal — especially those in the OTT streaming space, like Netflix, Hulu, and Disney+. 

When it comes to content niches, entertainment is naturally the first choice — live sporting events, shows, films, and similar. However, SVOD can also work well for on-demand educational video content (online teaching). 

While the global SVOD market is expected to reach 700 million subscribers worldwide by 2026 — a 35% jump in just two years — it’s an oversaturated market that requires ongoing investment in both content quality and competitive pricing strategies. You’ll also need a distinct value proposition to make you stand out from your competitors. 

TVOD — Pay-Per-View & Rentals for Premium Access

While transactional video on demand (TVOD) may not dominate the video monetization space like SVOD and AVOD, it has carved out a valuable niche, particularly for premium and event-based content. By mirroring the traditional box office model, TVOD allows publishers to tap into audiences willing to pay for exclusivity — whether it’s early access to films, limited-time releases, or niche content unavailable elsewhere. 

This flexibility also extends to pricing structures, as you can experiment with rental windows, one-time purchases, and bundled content offers. Since digital consumption habits continue to evolve, TVOD presents a unique opportunity for publishers to maximize revenue while maintaining full control over their content distribution.

TVOD depends on individual purchases so revenue can be unpredictable. That’s why this model works best for publishers with frequent new releases, but for others, relying solely on TVOD can be a gamble. A good practice would be to combine it with AVOD or SVOD for a more stable revenue stream.

AVOD — The Power of Free, Ad-Supported Content

Unlike SVOD, which locks content behind a subscription fee, or TVOD, which charges per view, advertising-based video on demand (AVOD) offers a different approach — free content in exchange for viewing ads. This model benefits everyone: publishers generate revenue by running ads in their videos, while audiences enjoy unlimited access without paying a dime. 

The AVOD market has been rapidly increasing each year and is expected to reach $66 billion by 2026, a 144% increase from 2020. Even industry giants that mostly relied on SVOD have taken notice, with platforms like Netflix and Disney+ introducing ad-supported tiers to capture this booming market. 

AVOD offers publishers an easy way to generate revenue while keeping their video content accessible to a broader audience. Unlike SVOD and TVOD, it is easy to implement, requiring only a quality ad network to handle ad placement and targeting. This makes it particularly beneficial for publishers just getting started with video content, as users are more likely to watch free, ad-supported content than pay for an unknown service. 

However, keep in mind that ad networks and monetization platforms have eligibility criteria. While some cater to smaller publishers, larger networks often require a steady flow of traffic to ensure profitable ad placements.

Hybrid Models — Mixing AVOD, SVOD & TVOD for Maximum Profit

You don’t have to rely on just one monetization model — combining two or more models can significantly increase revenue and audience reach. A hybrid approach allows you to balance accessibility, exclusivity, and profitability, catering to both paying subscribers and ad-supported viewers.

For example, you can offer a free, ad-supported tier for general content. In contrast, you can reserve premium videos for subscribers and high-value, event-based content like live sports or exclusive releases you can monetize through one-time purchases. Many major streaming platforms, including Hulu, Amazon Prime Video, and YouTube, already use hybrid models to diversify their income streams and maximize audience engagement.

Hybrid models are especially useful for publishers with diverse content libraries, allowing them to attract both casual viewers and dedicated subscribers. However, managing multiple revenue streams requires strategic planning. Poorly balanced models can lead to audience frustration or revenue dilution.

Video Content Syndication — Expanding Reach & Revenue

Video content syndication is a great solution for monetizing content or boosting your other monetization models. It benefits both large and small publishers — big media networks can distribute their videos across multiple websites, expanding their reach and gaining new viewers, while smaller publishers get access to high-quality content to engage their audience.

Syndication also opens up new ad monetization opportunities, as both parties share the ad revenue generated across different website assets. This makes it a smart strategy for publishers looking to maximize their content’s value without relying solely on their own channels.

Sponsorships & Brand Deals — Monetizing Beyond Ads

With this approach, publishers partner directly with brands to feature sponsored content, product placements, or branded integrations within their videos. This model works well for publishers with an established viewership, as brands are willing to pay more for direct exposure from well-known publishers. 

Just keep in mind that sponsorships can be a double-edged sword — too many, especially those that don’t match your audience’s interests, can hurt credibility!

Which Video Monetization Model Works for You?

Choosing the right video monetization model depends on multiple factors, from the size of your audience to the type of content you produce. Here’s how to determine the best fit for your business:

Publisher Size — Larger publishers with extensive content libraries often benefit from SVOD or hybrid models, using both subscriptions and ad-supported content to generate revenue. Smaller publishers, on the other hand, may find AVOD or syndication partnerships more effective, as they require less upfront investment while still providing a scalable revenue stream.

Target Audience — Understanding your audience’s behavior is key. Are they willing to pay for exclusive content? If so, SVOD or TVOD could be a great fit. If they expect free access, AVOD or hybrid models with premium upgrades might work better. Sponsorships and brand deals are ideal for publishers with engaged, niche communities that advertisers want to reach.

Content Quality & Frequency — If you consistently produce premium, high-value content, SVOD or TVOD could offer a stable income. However, if your videos rely on volume rather than exclusivity, AVOD or syndication will likely be more profitable. Live events and time-sensitive content perform well under TVOD, while diversified content libraries can thrive with a hybrid approach.

No single model fits all publishers — testing and adapting your monetization strategy is key to maximizing your revenue. Whether you’re focusing on ad-supported streaming, subscriptions, or a combination of both, I suggest choosing one that aligns with your overall content strategy, audience expectations, and business goals.

More Revenue, Less Effort with TargetVideo

TargetVideo offers website publishers everything they need to scale and earn revenue from videos. With our TargetVideo Platform, publishers have full control over content management, distribution, and monetization. Assign user roles for detailed content library management across your entire website network. Choose how and where to distribute videos and get actionable, real-time insights into their performance. 

Additionally, our platform provides an array of ad setup options, allowing you to monetize your digital assets in any way you choose. Sell instream and outstream inventory, set floor prices, and toggle automated revenue optimization for the best results. 

And if all of this seems like too much work, our Managed Ads service has got you covered — our team will take care of everything in your stead! 

Video Monetization Models FAQ

* This article was originally published here