OTT Monetization Model: Where paywalled content rides reach of ad-supported show

Entertainment industry experts say that while free programming will continue to generate high viewership and reach, given the easy access and sampling, it is the paywalled content for subscribers that will bring in real revenue and engagement. In essence, a hybrid model of content monetization is the way forward for over-the-top platforms, they argued.

There is a clear trend where free, ad-supported content is attracting a larger audience compared to subscription-based models, Kaushik Das, founder and CEO of AAONXT, a platform specialising in Odia content, said. 

“The ease of accessibility and zero cost make AVoD an attractive choice, especially in price-sensitive markets like India. As more platforms adopt a hybrid model, AVoD will serve as an entry point for users who may later opt for premium content through SVoD. 

However, the key to sustaining SVoD growth will be exclusive, high-quality content that justifies its price—be it through early access, premium productions, or unique storytelling that isn’t available for free,” Das pointed out.

MX bets big on AVoD

According to estimates by media consulting firm Ormax, the latest season of Aashram garnered viewerships of 9.6 million in its opening week, rising to 10.1 million in the second week before slipping to 8.1 million in the third week, yet consistently ranking number one on the list of top AVoD and SVoD (subscription video-on-demand) shows through March.

Another Amazon MX show Hip Hop India Season Two debuted with a viewership of 4.3 million, right behind Aashram, last month.

“Both AVoD and SVoD have distinct content offerings, which attract different types of audiences. For a free AVoD service, providing friction-free access to viewing is critical so that a large number of customers can easily browse and view shows,” Aruna Daryanani – director of Amazon MX Player, said. “In addition, we also need to ensure that the viewing experience continues to be best-in-class, despite fluctuations in mobile data availability and that data consumption is optimal.”

As smartphones prices drop and with data in India already the cheapest in the world, there is still a significant opportunity for video consumption growth, Daryanani asserted, adding that both AVoD and SVoD can co-exist.

Emphasizing Amazon MX Player’s commitment to AVoD content, Amogh Dusad, the company’s head of content, said that the platform recently announced its 100-plus show slate for 2025, which includes titles like Made in India: The Titan Story, starring Naseeruddin Shah and Jim Sarbh, Mitti featuring Ishwaq Singh, the second season of Hunter, an action and thriller series starring Suniel Shetty and Jackie Shroff, and Rise and Fall, a reality show with entrepreneur Ashneer Grover as the game – master.

Hybrid model wins favour

While there is no denying the high delta in terms of reach and views that AVoD content enjoys, there is enough logic in adopting a hybrid approach that continues to prioritize SVoD, according to some entertainment industry experts. While AVoD helps sampling, only SVoD can drive users to stay loyal to a platform.

Charu Malhotra, co-founder and managing director, Primus Partners, a management consultancy firm, said the SVoD audience base experienced a decline, dropping from 153 million in 2023 to 150.6 million in 2024. This indicates stagnation in subscriber acquisition and retention. To counter this, SVoD platforms may need to innovate their content strategies, offer exclusive high-quality content and enhance user engagement to justify subscription costs.

“Free content will always have a market in India, but most AVoD business models can’t achieve break-even on a standalone basis. AVoD needs to be integrated with commerce, customer acquisition, and so on, in order for a sustainable business,” Ashish Pherwani, M&E (media and entertainment) sector leader, EY India, said.