In recent years advanced media distribution technologies have given us a ‘personalized’ TV viewing experience, be it HDTV, Web TV, IPTV, or streaming on TV or mobile phones. Of these distribution technologies, IPTV has been remarkably successful, reaching $40 billion market value in 2019. This growth was driven by big streaming providers like Amazon, Netflix, Hulu, which used a variety of monetizing methods for the rich content they offered. By 2026 IPTV channels should expect this distribution market to exceed $46.8 billion going by the current growth at 17%. Hence, the timing is perfect for smaller IPTV channels to learn from these big players and use similar ways to earn revenue from their high quality transmission!
To earn revenues from your IPTV channel, let’s begin with an overview of IPTV technology basics!
IPTV- how does it work?
IPTV, also known as Internet Protocol Television, is the streaming of content over managed networks’ like Wide Area Network (WAN), private Local Area Network (LAN) or private networks. A unique address, called the IP Address, is assigned to every device on these networks for transfer of data and information between these connected devices.
To achieve this type of distribution, content that IPTV channels transmit are stored on the cloud, allowing users to view as per their convenience. In contrast, cable or satellite services transmit content in real-time, limiting user experience! Moreover, the quality of IPTV service is superior to competing media distribution technology such as Over-the-top(OTT).
Any device can stream IPTV content continuously using a set-top box. IPTV channel TV shows via set-top box begin with users clicking the link on the TV show that they want to view. In the background, a request is sent to the server (which is the source of the content). One of the things the server will do is to divide the video content into data packets but in video compression format, ready for transmission over the internet. This data is delivered to the closest local node. From here, the signal travels to viewers’ homes over fiber optic cable and set-top box shall decode it for the show to broadcast on the IPTV channel. For smart TV’s software transcodes traditional signals to IP-supported devices by directly communicating content over the internet connection itself.
How can you make your IPTV Channel generate revenue?
Monetizing streaming content is the mainstay of online businesses currently and plenty of models are in use by IPTV channels.
The type of IPTV services will determine the type of monetization method you should use.
IPTV Middleware are the primary quantifiable solutions for monetizing in the following ways – Pay per view events, advertising, monthly subscriptions, Google AdSense, WordPress Shopping Cart.
Three of these monetization methods are discussed in the following sections…
Three-ways to monetize IPTV Channel
Three ways to monetize and earn an income from viewership are as follows:
- Advertising
The most popular way to make money from streaming content is advertising.
Two ways of advertising content are:
- Pre-roll advertising
In this method, short commercial advertisement videos are spliced into streaming content. When viewers are watching the video, these advertisements will pop-up on the screen.
- Video advertising
In this method, video advertisements are inserted before video content and in-between content, just like television advertisements. Pre-set length of advertisements in video segments, helps in huge money generation. The viewer will see or cause an impression or interact or click the advertisement, fetching you income. This method is most recommended when you already have a large following.
- Pay Per View Events
In this method, you use your IPTV channel to record a live event and charge viewers to access the same. The popularity of the event will determine your earnings and is most recommended if you are covering events with a loyal fan following. This will be in addition to the tickets you sold for the actual event itself.
- Subscriptions Model
In this method, you can use your IPTV channel to capture a monthly subscriber viewer base. In this method, for payment, the subscriber will watch all the content they wish to view. This will help you look at a churn rate, and the annual percentage rate for customers to stop using the service and subscribing.
Just like Netflix cracked its first 50 million subscriber mark in July 2015. The subscription was attractive because it helped viewers to move away from physical renting of DVDs and watch content over the internet.
Hence, if you are able to release new content consistently, then this is the monetizing model to be used!
Conclusion
IPTV channels are the future of TV entertainment as they will offer a completely ‘immersive experience’ in the days to come! It is recommended that IPTV channels partner with a top-tier network carrier and IPTV solution provider with the technology know-how to build or to expand your IPTV channel!
Solutions offered by best IPTV platform are behind-the-scenes, end-to-end technology available at competitive prices, allowing you to monetize your IPTV channel offerings successfully.
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