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Unpacked: How Streaming Platforms Earn Money?

30/05/2023

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Unpacked: How Streaming Platforms Earn Money?

In the past 10 years, it is not difficult to recognize a revolution undergone in the field of entertainment and media. A series of giants emerged as streaming platforms and recorded to generate huge revenue streams. Curious minds began to ask “How streaming platforms earn money?”

Want to find out the answer? So let’s get started!

You’re undoubtedly familiar with the concept of a streaming platform, and even if you’re not, you’ve almost certainly observed one. So have you ever wondered what it is?

What are Streaming Platforms?

Streaming platforms are Internet-based services that allow users to easily access and view digital content such as movies, TV programs, and live events.

Online streaming enables content to begin playing while the remaining data is still being transferred to your device. These platforms make it easy for users to ingest media without downloading files or purchasing physical copies.

What are Streaming Platforms?
Source: The Tech Blog

Here are some popular examples of streaming platforms:

  • Video Streaming Platforms: Netflix, Hulu, Amazon Prime Video, Disney+, HBO Max, Apple TV+, YouTube Premium, etc.
  • Music Streaming Platforms: Spotify, Pandora, Apple Music, Amazon Music Unlimited, Tidal, Deezer, etc.
  • Live Streaming Platforms: YouTube Live, Twitch, Facebook Live, Instagram Live, Periscope (Twitter), etc.

How Does Streaming Work?

Content (like a movie) is divided into smaller chunks or data packets to facilitate the streaming process. These data fragments are sent to your browser, which interprets them as a movie. As soon as your browser receives sufficient data packets, the video begins to play.

To ensure that streaming works smoothly, you must have a reliable internet connection with sufficient performance. A minimum of 2 Mbps (megabits per second) is required for smooth, interruption-free streaming. If your Internet connection is too slow, your media will often stop and start while your device buffers.

Key Features of Streaming Platforms

Key Features of Streaming Platforms
Source: Medium

Key features of streaming can vary depending on the type of content being streamed and the specific platform, namely:

  • On-demand access to a vast library of movies, TV shows, and other content.
  • Personalized recommendations following user preferences and habits.
  • Compatibility with multiple devices.
  • Offline viewing capability, enabling users to download content and watch it without an internet connection.
  • Production and availability of original content.
  • Simultaneous streaming on multiple devices, allows different users to watch different content simultaneously.
  • Social features enable users to share viewing experiences with others on streaming platforms.
  • Global reach which is accessible to users worldwide.

Common Ways of How Streaming Platforms Earn Money

There are numerous ways of how streaming platforms earn money to keep operating. Some typical revenue streams for such platforms are:

Common Ways of How Streaming Platforms Earn Money
Source: Booqed

Subscription Fees

Numerous streaming services utilize a paid subscription model. This means that customers pay a monthly or yearly fee to access the streaming service’s video content library.

Many streaming services offer different subscription plans to their customers. Some plans include advertisements and commercial segments that play during or before the content, while the more expensive plans usually offer ad-free access.

The fees can vary based on the platform’s pricing strategy, region, and the sort of subscription plan (e.g., basic, standard, premium). Here are some examples of streaming services that provide such packages:

  • Netflix
  • Hulu
  • Disney+
  • Amazon Prime Video
  • HBO Max

Advertisements

Some streaming services generate revenue on their platforms through advertising. This includes advertisements that may appear during or before and after video content. Ad placement fees are determined by factors such as page visits, ad impressions, and user interaction.

There are even streaming services that rely solely on this business model for profits, meaning they do not charge users for subscriptions or application downloads. Some examples of this are as follows:

  • Pluto TV
  • The Roku Channel
  • Kanopy

Content Licensing and Distribution

License agreements are a common way for streaming services to get access to third-party content. They pay filmmakers and record labels for the privilege of streaming their films and programs. Platforms attract and maintain users by providing access to popular and unique content. The licensing fees may be affected by a number of factors, including the content’s level of popularity and demand, the need for exclusivity, and the duration of the licensing arrangement.

Merchandising and Product Placement

Streaming services may profit from their original content’s popularity by selling merchandise and arranging for their products to be included in the show. Clothing, toys, collectibles, and other branded things with TV series’ or films’ logos may be on sale. For example, TikTok is doing a great job of promoting its merchandise via its live-streaming programs.

Merchandising and Product Placement
Source: Search Engine Journal

Partnerships and Sponsorships

Partnerships and sponsorships between streaming services and other businesses, brands, or content producers are not uncommon. Cross-promotions, joint-advertising initiatives, and exclusive content arrangements are all examples of the kinds of partnerships and sponsorships. For promotional tie-ins, platforms may partner with companies to include the latter’s wares in the platform’s advertising or other types of promotion.

International Expansion

By penetrating new overseas areas, streaming services want to increase their exposure and subscriber base. They may reach more prospective customers and generate more income by establishing their services in other nations. Netflix and Disney+ are the two popular cases of streaming services that have successfully grown internationally (more than 100 regions launched).

Data and Analytics

Businesses can use streaming services to gather massive quantities of user information, thus, analyzing their audience’s tastes and habits. With this information, they may fine-tune their platform’s operations, provide more tailored suggestions, and enhance content curation. To further facilitate market research, audience targeting, and trend monitoring, streaming platforms also provide aggregated, anonymized user data available to advertisers, content providers, and other parties.

Data and Analytics
Source: Evrideo

Make The Most Out of Your Streaming Platform With SupremeTech

The entertainment industry is changing continuously, with streaming platforms playing an indispensable role in shaping the way we enjoy content. SupremeTech understands the critical role that streaming services play in the modern technological world and hopes to give you a detailed answer to how streaming platforms earn money.

At SupremeTech, our standout offering, OTTclouds Streaming Solution, embodies our commitment to providing solutions that enable seamless content delivery. OTTclouds offers a robust content management system for OTT streaming service providers, enabling businesses to optimize their video content management processes and maximize the value of their video database.

Our team is dedicated to keeping up with technology advancements and offering innovative approaches that give streaming platforms a competitive advantage in this rapidly evolving industry.

Don’t hesitate to contact us now to unlock the full potential of streaming platforms!

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            From Raw Data to Perfect API Responses: Serialization in NestJS

            Hello, My name is Dzung. I am a developer who has been in this game for approximately 6 years. I've just started exploring NestJS and am excited about this framework's capabilities. In this blog, I want to share the knowledge I’ve gathered and practiced in NestJS. Today's topic is serialization! As you know, APIs are like the messengers of your application, delivering data from the backend to the client side. Without proper control, they might spill too much information, such as passwords or internal settings. This is where serialization in NestJS steps in, turning messy, raw data into polished, purposeful API responses. With the power of serialization, you can control exactly what your users see, hide sensitive fields, format nested objects, and deliver secure, efficient, and downright beautiful responses. In this blog, we’ll explore how serialization in NestJS works, why it’s a must-have skill for any developer, and how to implement it step by step. Your APIs will go from raw and unrefined to clean and professional by the end. Let’s dive in! What Happens Without Serialization? Let’s look at what happens when you don’t use serialization in your NestJS application. Imagine you’re building a user management system, and you create an API endpoint to fetch user details. Here’s your User entity: Now, you write a simple endpoint to fetch a user: What happens when you call this endpoint? The API sends the entire user object straight to the client—every single field included: The consequences of lacking Serialization in the NestJS application Security Risks: Sensitive data, like passwords, should never be exposed in API responses.Data Overload: Users and clients don’t need internal flags or timestamps—they just add noise.Lack of Professionalism: Messy, unfiltered responses make your API look unpolished and unreliable. Next, we’ll see how to clean up this mess and craft polished API responses using NestJS serialization techniques. The Differences in Applying Serialization By implementing serialization in your NestJS application, you can take full control over what data is exposed in your API responses. Let’s revisit the previous example and clean it up. Step 1: Install class-transformer To get started with serialization, you need the class-transformer package. Install it with: Step 2: Update the User Entity with Exposed or Excluded Decorator Use class-transformer decorators to specify which fields should be exposed or excluded. Only the ID and email fields will be included in the response. Step 3: Apply the Serializer Interceptor NestJS provides a built-in ClassSerializerInterceptor to handle serialization. You can apply it at different levels: Per-Controller Globally To apply serialization to all controllers, add the interceptor to the application setup: When the Get User Endpoint is called, this is what your API will now return: Why Serialization Makes a Difference Security: Sensitive fields are automatically excluded, keeping your data safe.Clarity: Only the necessary fields are sent, reducing noise and improving usability.Professionalism: Clean and consistent responses give your API a polished look. Dynamic Serialization with Group What if you want to show different data to users, such as admins versus regular users? The class-transformer package supports groups, allowing you to expose fields based on context. Example: In the controller, specify the group for the transformation: When the Get User Endpoint is called, this is what your API will now return: By incorporating serialization into your NestJS application, you not only improve security but also enhance the user experience by providing streamlined, predictable, and professional API responses. Now that you know how serialization works in NestJS, you can apply these techniques to your projects, creating safer, cleaner, and more maintainable APIs. SupremeTech has lots of experience and produces web or app services. Let’s schedule a call now if you want to work with us. Also, now we are hiring! Please check open positions for career opportunities.

            20/12/2024

            48

            Dung Nguyen Q.

            Knowledge

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            • Software Development

            From Raw Data to Perfect API Responses: Serialization in NestJS

            20/12/2024

            48

            Dung Nguyen Q.

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