Since the release of TikTok, making short videos has exploded in popularity all around the world. The use of short-form video sharing sites is on the rise. With more than 611 million downloads, TikTok soon overtook other short video platforms in India. After an international incident with India, the country decided to ban it on June 29, 2020, citing security concerns. There are now other short-video sharing apps to TikTok. The Instagram “Reels” feature was introduced immediately after TikTok was blocked in India.
Short-form video sharing sites like Josh, Moj, MX Taka Tak, and many others are rapidly expanding. Since Jio entered the market, mobile data plans have become more affordable. Both the consumption and creation of short video content in India have been fueled by the accessibility of cheap Android phones with high-quality cameras.
Anyone with a reliable internet connection and a smartphone with a competent camera may now make and upload brief video content. The short video platforms provide a wide range of economic structures, and each business has a different revenue stream. These platforms often give its users free services to test out the business model. The income structures that platforms for short videos utilize will be covered in this article. Therefore, let’s begin.
How do short-video platforms generate revenue?
- Promotion Of Brand
- Sponsorship
- Affiliate Marketing
- Collaboration
- Transactional Video on Demand (TVOD)
- Subscription Video on Demand (SVOD)
- Ad-supported Video on Demand (AVOD)
- Hybrid Model
Promotion Of Brand
People who navigate through social media sites prefer watching short videos. You’re sure to pay attention to something entertaining, whether it’s a TikTok video or a Reels on Instagram. There are a lot of brands that post challenges on this video channel and want viewers to take part. The challenge is introduced by the platform with funding provided by the brand. This completes the campaign, allows participants to engage with the brand while completing the challenge, and frees up the platform’s resources for other uses.
Sponsorship
For the platforms for short videos, sponsorship is an additional revenue stream. To reach a wider audience, many businesses voluntarily sponsor quick video apps. As a result of the high number of viewers of these videos, it is advantageous for the business to sponsor them in order to gain exposure to a big audience of people who might become clients. With the platform being able to profit from it, it is a win-win situation for both the sponsor and the platform.
Affiliate Marketing
The affiliate marketing platform receives funding from brands. In this case, the platform must display a video pertaining to the brand’s goods, in which the movie contains all relevant information. Affiliate marketing aids firms in growing their revenues as viewers’ attraction to videos has increased. As a result, several businesses are now adopting short video platforms to promote their affiliate marketing efforts.
Collaboration
Every time a new movie or music video is about to be released, celebrities or artists work with video platforms. In this way, they may present their movies, music videos, or whatever else to a large audience while also promoting it. Collaboration is a means to make money because it offers revenue to short video platforms.
Transactional Video on Demand (TVOD)
Customers typically pay a one-time price or rent the product in this sort of business model to watch films or live events. It is most frequently referred to as pay-per-view. This makes it easier for you to select the entertainment videos you want to view; you can just pay for the stuff you need, which raises the model’s popularity. Since you may pick the entertainment you want to watch without having to buy a lot of subscriptions, it is thought to be more economical.
TVOD aids in targeting and providing material to a certain market. You will only receive video suggestions that are relevant to you and not ones that you don’t want to see.
Using this technique, you can identify video networks like YouTube or Instagram that propose videos. The platforms would monitor your actions and make content recommendations based on your preferences.
The majority of the time, you will be able to find the information that suits your preferences because of this. The only distinction is that these video sites allow you to watch videos and other stuff for free.
Subscription Video on Demand (SVOD)
A consumer will be required to pay a fee either monthly, quarterly, or annually under this subscription-based approach. You can access both the most recent stuff on their platform and an endless number of other content by subscribing to their service.
There will be various subscription models available. If you choose the model with the highest price tag, the services you get will be superior.
The costs would vary, which would be the primary distinction between various subscription plans. You would also receive extra services and a few benefits. The popular videos are typically only accessible to premium subscribers.
Major OTT platforms like Netflix, YouTube, and many more mostly use this revenue model. YouTube Premium is the company’s paid subscription service. You may pick and choose what you want to watch on these platforms, which is the key benefit here.
Ad-supported Video on Demand (AVOD)
Customer viewing of the content is free in this model. On this site, you can see the content for free, but you will see advertisements in between your articles. The primary source of income for the platforms is advertising.
Depending on what time an advertiser wants their ad to show, the platform will charge them at a different cost. For instance, an ad that plays earlier in the video will cost more than one that plays later. YouTube is the primary illustration of this concept.
Even the content producers on some websites, such as YouTube, would be paid a set sum for the advertisements that were shown in between their videos. The platform’s financial situation as well as that of the content creators will be indirectly improved by encouraging the authors of the content to produce and market more of their work.
Hybrid Model
Companies that desire to expand their reach typically choose this type of business model. It combines all of the aforementioned techniques. The platform would initially want a user to watch it for free while playing some video commercials, and then they would want to convert the user to the subscription model or transactional video model.
The business would start to make money right away and draw in a large number of customers. Customers would have a wide range of options to pick from with this model. Depending on your preferences or budget, you could pick the model you like best.
Conclusion
Number of active users over the years
In the upcoming years, there will be a further rise in demand for short video platforms. Over 650 million users are anticipated to be actively using short-video services by 2025. We would be able to observe numerous content producers and the uploading of numerous viral videos. Numerous other apps are emerging as a result of TikTok’s ban in India, coupled with new features like Instagram’s Reels, which promotes short videos.
People now use YouTube as a platform to produce content on a full-time basis. Short video platforms will prosper in the future as the entertainment sector becomes more and more well-known.
FAQs
What is the Business Model of TikTok?
TikTok primarily gains its revenue through advertising.
Which countries have banned TikTok?
TikTok is banned in India and Pakistan only. Though Bangladesh, the United States and Indonesia have attempted a ban on TikTok but later lifted it.
Why is TikTok banned in India?
The Indian government in a statement stated that the decision to ban the app was “to protect the data and privacy of its 1.38 billion citizens”.
Which is the best platform for short videos?
The best platform for short videos based on its features are as follows:-
Instagram
TikTok
Moj
Josh
Likee
Taka Tak
Snapchat
YouTube Shorts
Dubsmash
Which short video app is best to earn money?
The best short video app to earn money are as follows:-
Kwai
Instagram
Likee
TikTok
Moj
Josh
Taka Tak
Vigo Video
Which app is best for short video editing?
The best video editing apps are:-
InShot
KineMaster
Movavi Video Editor Plus
FilmoraGo
ActionDirector
Adobe Premiere Rush
Funimate.
Comments