The formula for online video monetization

Most people will tell you that there is no standard formula for monetizing video online. I beg to differ, and here is what I think is an actionable formula:

M=R*(A+C)^E

I know, at first sight it reads like “miracle”, but I don’t think it takes a miracle to monetize video online. Here’s what the formula is trying to say:

Effective Monetization requires combining broad Reach with the right balance between Access and Control to offer a compelling user Experience.

The first variable, Reach, is an easy one to achieve: use Flash. It runs on over 98% of Internet-connected computers world-wide (PCs, Macs and Linux.) It is used for over 75% of video on the web. And the Flash Platform continues to evolve, with new versions being rolled out not just on desktops and laptops, but also tablets and smartphones (just not the ones you’re thinking of.)

Flash can also help you create a great user Experience, by enabling the development of rich, interactive applications and the use of dynamic streaming to adjust to changing bandwidth conditions.

That leaves the part about balancing Access and Control. All monetization strategies, whether it’s advertising, subscription (buzzword of the month: paywall), rental or electronic sell-through need some of both. Going too far in either direction is just not profit-maximizing.

And this is where content protection technologies such as Flash Access come in. By limiting unauthorized copying and redistribution and enforcing usage rules to support their business model, content providers can use Flash Access to help protect investments in content and technology. When used correctly, the vast majority of consumers won’t even notice that the content is protected in the first place.

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