OTT channels are witnessing an emergence of new model — offering free content and getting revenue through Advertising Video on Demand (AVOD). This model is especially successful with live cricket content. Adoption of AVOD benefits everyone. Consumers get access to streaming content for free. Platforms get a large viewership. Marketers get an opportunity to promote their products.

The target group for the ad and content consumption is Gen Z and millennials. YouTube and AVOD attract maximum audiences and ad spend in the digital advertising market.

Most OTT players (except Netflix and Amazon Prime) operate a hybrid model — advertising plus subscription. Broadcasters own some streaming platforms, e.g. Sony owns Sony Liv. These OTT platforms get TV catch up content at no cost. However, they charge a fee for original content e.g. web series, movies and sports.

As it is tough to monetize through subscriptions alone, there is dependence on advertising revenue.