Re: Netflix, and the like, business models

Internet based streaming services are changing how video is produced and consumed. Telecom and media companies delivering video content call these services “OTT” — “over the top”.

There are 3 primary business models for OTT which are used in a variety of combinations: SVOD, TVOD, and AVOD.

“VOD” — “video on demand”

Subscription VOD (e.g. Netflix) — all you can eat

Transaction VOD (e.g. Amazon Video without Prime) — pay per item

Advertising VOD (e.g. Youtube) — free! with ads interrupting you every 3 seconds…

This is a recapitulation of an article written by Mads Kaysen on LinkedIn which can be found here: