Bitcentral’s Scott Alexander: Multi-revenue strategies are redefining success for media companies in the digital era.
The media landscape is undergoing a transformative shift as major players increasingly pivot toward streaming. For instance, CNN, after putting a pause on its prior initiative, has now recommitted to its digital transformation with a $70 million investment, signaling a broader industry shift towards digital-first strategies. This move reflects how traditional media companies are realigning monetization models to capture emerging revenue opportunities driven by evolving audience consumption habits.
Recent insights from Deloitte’s 2024 Digital Media Trends Survey reveal that the average U.S. household now uses 4.7 streaming services, with 47% of viewers relying on both free and paid options. This trend underscores the critical need for platforms that support a mix of monetization models to meet diverse consumer demands.
The Streaming Boom And The Growing Need For Flexibility
The influx of traditional media giants into streaming has intensified competition. As companies like CNN push aggressively into digital platforms, ripple effects are felt across both established and emerging streaming services. According to the Global Media Journal (2024), this evolving landscape is marked by innovation and adaptability.
Major players such as Amazon, Disney and Netflix have reshaped their revenue strategies to include a blend of advertising, subscriptions and premium pay-per-view options. Netflix and Amazon’s expansion into ad-supported content and Disney’s multi-tiered bundles exemplify this shift. As a result, the global AVOD market is projected to grow from $38 billion in 2023 to $69 billion by 2027, according to Statista (2024).
These platforms recognize that consumer preferences are not one-dimensional, making adaptability to multiple revenue models vital for sustaining competitiveness. Furthermore, PwC’s Global Entertainment & Media Outlook (2024) indicates that U.S. SVOD revenue reached $40.6 billion in 2023, while AVOD revenue surged to $18.5 billion, up nearly 42% from the previous year. This diversification not only enhances revenue and income given the large, rapidly growing market, but also builds resilience against future disruptions and inevitable ongoing changes.
Why Diversification Is Critical For Sustainable Revenue
Relying on a single revenue stream is inherently risky. Audience behaviors shift, platforms evolve and market disruptions are inevitable A diversified monetization strategy reduces risk and maximizes revenue potential. Integrating advertising, tiered subscriptions, pay-per-view events or hybrid AVOD/SVOD models enables more robust monetization pathways.
However, this level of diversification demands technological flexibility. Platforms limited to specific revenue models face are simply missing out on significant opportunities for growth. Operators that launch with technology solutions incapable of supporting diverse monetization paths will find themselves locked into a narrow trajectory. Should they later decide to pursue ad-supported FAST channels, they may be forced to seek out entirely new technology providers — a costly and disruptive pivot.
The Shift Toward Payment Flexibility
Today’s consumers want more control, whether it’s through subscriptions, one-time purchases, or event-based payments. The KSI vs. Logan Paul boxing match, generating 1.3 million pay-per-view buys, illustrates the power of diverse payment options.
Flexible payment models not only unlock new revenue streams but also broaden audience reach. According to PYMNTS (2024), 70% of consumers consider payment options when making purchasing decisions. Providing this flexibility not only drives revenue but also fosters stronger audience loyalty.
Embracing The Future Of Streaming Revenue
As digital transformation accelerates, media companies must prioritize multi-platform, multi-revenue strategies. Flexibility is not merely an advantage, it’s foundational for growth in the evolving streaming landscape. With more than 1,500 FAST channels now available in the U.S. and industry reports expecting ad revenue from FAST to surpass $10 billion by 2027 adaptability has become a strategic necessity.
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