How does the OTT platform work and earn money?

People are curious about OTT platforms and how they make money. This blog will help you to understand everything about OTT platforms. This blog will provide you with all the information about OTT platforms. Before we get into the details of OTT platforms, let’s first define what they are.

What is an OTT platform exactly?

OTT stands for Over-the-top platform. It is a way to send content, audio or video, over high-speed Internet connections. Instead of sharing it via cable operators and broadcasters, you can use this method.

OTT content is mostly video content, such as movies and TV series or daily soaps. Music OTT platforms allow consumers to stream music directly to their smartphones, laptops, and smart speakers via the internet.

These are some of the most popular video OTT channels:

  • Netflix
  • Prime Video
  • Disney+Hotstar
  • Movie Plus
  • Jio Cinema
  • Alt Balaji
  • Sony LIV

Take a look at these streaming music OTT platforms’ market shares.

What does it take to make OTT platforms work?

Let’s find out how the OTT platform works.

The pre-recorded content is then stored in the CDN (content distribution network), which is distributed over the internet. The OTT platforms’ video delivery technology uses special technology to securely stream the video files stored over a server.

A user visits a platform and selects the video stream via an app. Next, a request is made for the local Content delivery network in order to obtain the file and deliver it to them in video chunks. A request is also made to the DRM (Digital Rights Management) server. The request can be decrypted so that the requested media can be presented to the user as the desired media.

Here are some steps to help you understand how it works:

The first thing that you should know is that these OTT platforms buy the rights to tv shows and movies. They have also started producing the shows and movies. However, for the consumer, you need to keep paying for anything that you watch in the form of subscriptions. A cheaper and friendlier alternative would be to useĀ pirate bay and to download the entertainment content you are looking for.

Step 1

The device is requesting more than 30 seconds worth of chunks to be filled up the buffer by the player using the manifest file from the content delivery network.

Step 2

The chunks are sent back by the content delivery network, and the media key decrypts them for playback.

Step 3

The player on the user device renders the video bits sent by CDN and plays them on the user’s screen.

Step 4

Once the process has begun, the video player will continue to request the video chunks to keep the buffer full until the viewer stops watching or pauses.

These are the four steps an OTT platform must follow to deliver content to its users.

We hope you have all your questions answered about the OTT platform. It’s now time to find out how OTT platforms make money and how they make a profit from it.

Also read: SkyMoviesHD Download

How can OTT platforms make money?

Nearly everyone has a smart TV or smartphone and is familiar with an OTT platform. OTT stands for Over the top, and it is a term that describes platforms that stream TV series or movies via the internet.

All you need to avail an OTT service is a device with the OTT platforms app and a reliable internet connection.

Many OTT platforms are available today, including Netflix, Prime Video, and Alt Balaji. Hotstar, Disney, and others.

There are many ways to make money on an OTT platform. Not all platforms can earn revenue in the same way. These are the three main VOD (Video on Demand) models that nearly all OTT platforms use in order to generate revenue.

  • SVOD (Subscription video on demand)
  • AVOD (Advertisement video on demand)
  • TVOD (Transactional Video on Demand)


Subscription Video on Demand is a subscription model that gives users access to the entire library for a fixed price. Users can choose to pay monthly, weekly, or annually. The company’s policies will determine the payment cycle. Companies that use the SVOD model generate their revenues and almost all OTT giants follow this model. You can use Netflix, PirloTV, Hotstar, Prime Video, and others.


Advertisement Video on Demand, as the name suggests, allows users to access the content with ads. With a few ads, the user can still consume the content. OTT platforms use these advertisements to offset housing costs like Youtube, MX Player, etc.


As the name suggests, transactional video-on-demand is a type of pay-per-view that allows the user to transact. This means that each piece of content the user consumes will be paid for. If the user wishes to view a movie or a series, they will have to pay for it. Google Play, iTunes, etc.

These are the models that OTT platforms use to generate revenue. They can also use a combination or a few of these models, which will be called Hybrid models.

This was about the OTT platform and how it makes money. We hope you found this informative and helpful. If you’d like to learn more about the OTT platform features that will be available in 2021, click here. Click on the link below.


In our blog, you can easily understand how OTT platforms work and earn money. There are many OTT platforms that provide you content in video, audio, etc format by paid. We also discussed all other points how they earn money.

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