What is a Video Paywall?
Have you followed a link to an article or video you wanted to watch only to hit a webpage asking you to pay for access to the content? Then you know what a paywall is. It’s a “wall” between you and the content you want to view; paying is the only way through it.
Paywalls are used for video monetization strategies of online media, but they are not exclusive to video content. You’ll see paywalls online, from newspapers like the New York Times to secure video streaming services.
There are three main types of paywalls:
- Soft Paywall: This is also known as a “metered paywall.” It gives users access to a certain amount of content for free. However, it requires them to pay for complete video content access.
- Hard Paywall: A hard paywall keeps all of your content gated from consumers. Content consumers must pay a recurring or a one-time fee to access your videos.
- Freemium: Similar to a soft paywall but gives the consumers access to a portion of videos for an unlimited time. They’ll need to pay a one-time fee if they want to access the rest of the content.
A video paywall is necessary for SVOD and TVOD monetization. It restricts free access to digital content by requiring a viewer to purchase the video or pay for a subscription to gain access to the content.
A video paywall for monetization gives your business complete control of your prices. You can keep your paywall low and accessible or charge a high-ticket fee for your content. It’s entirely up to you.
Subscriptions to powerful platforms like Hulu, Disney+, and Netflix are between $6 and $20/month, including different access tiers. Hulu, in particular, has several add-ons where users can unlock more and more content for an increased subscription cost.
The future of revenue-generating video is likely a model in which paywall platforms for video monetization become even more prominent. Viewers don’t like the advertising experience and have demonstrated they are willing to pay directly for the video content they want to watch online.
Here at Mslive, we’ve seen our customers experience significant growth in gross incomes when they started using our multiple currency paywall. Mslive makes it easy to customize your paywall and integrate payment solutions, making the process easy for you and your audience.
Why Use a Paywall to Monetize Your Video Content?
Why do you need a paywall? Is it the most effective way to monetize your video content? The answer to both of these questions is a resounding “Yes!”
A paywall allows you to control who has access to your content and provides a way to generate revenue from your video content. Several reasons why using a paywall is the best option for monetizing your video content.
1. A paywall ensures that only people willing to pay for your content can access it. That means you can be sure that the people watching your videos are interested in your offer.
2. It allows you to set different price points for different types of content. For example, you could charge a higher price for exclusive access to new videos or give discounts for bulk purchases.
3. Also, it provides a way to track who is watching your content. This information can be valuable in understanding your audience and tailoring your content to them.
4. Paywalls give you the ability to offer a variety of content types, including behind-the-scenes footage, live streams, and more. That helps to keep people engaged with your brand and increases the likelihood that they’ll continue to watch your videos.
5. Finally, using a paywall allows you to avoid ads. Ads can be intrusive and distracting and can lower the quality of your video content.
In 2020, digital sales and rentals peaked as the market for people seeking in-home entertainment exploded. In the US, digital entertainment was a $30 billion industry in 2020. Digital sales and rentals increased by 30% between 2014 and 2018. TVOD revenue in the United States is projected to reach $13.5 billion by 2026.
With the paywall model, users can’t access your content until they have paid. That makes video paywalls for video hosting perfect for:
- Hybrid Events – A hybrid event is when people can choose to participate in an event either virtually or in person. The paywall asks for the ticket-taker and allows access.
- Music Shows – Virtual concerts might never completely replace in-person concerts, but they can give musicians more opportunities to perform and increase access. An in-person concert limits the number of people that can fit in the building and watch it. A video paywall makes it possible to sell tickets to unlimited viewers.
- Sports – Sports are a little different than concerts in that viewers are more accustomed to paying for virtual access to events. Instead of buying a hefty cable package and enduring the commercials, a paywall is an upgrade.
- Business Conferences – Traveling for a weekend business conference isn’t always feasible or desirable. A virtual business conference makes getting more participants and potentially more speakers easier and more cost-effective. A conference is a great candidate for a hybrid event as well. If you’re already going to hold the event in person, why not offer tickets to an exponentially more significant number of viewers using a paywall?
- One-Time Events – Holding a one-time event in person means you have one chance to sell access to one room full of people. Setting up a paywall and offering the content virtually allows you to sell unlimited tickets over a more extended period.
Using a video streaming platform with a paywall integration helps protect your business from the whims of another company’s algorithms. In addition, it protects you when legislation or advertisers become an obstacle on a free video platform like YouTube.
How a Video Paywall Can Help You Grow Your Business
There’s a good reason why nearly 50% of media outlets in the United States use paywalls to generate revenue in one way or another. And that’s because it works!
A video paywall can help you in several ways, including:
1. Increasing brand awareness: A video paywall helps to increase brand awareness by giving people a reason to visit your website or blog. When they see your videos, they’ll be more likely to remember your brand and come back for more.
2. Generating revenue: Making money is the ultimate goal for any business, and a video paywall can help you do that. By charging for access to your videos, you can generate revenue that can be used to grow your business.
3. Increasing engagement: A paywall also helps to increase engagement by giving people a reason to watch your videos. When they know they’ll be able to access your content, they’re more likely to watch it.
4. Building an audience: You’re trying to build up a loyal audience on a video streaming platform like YouTube? A video paywall can help with that too. You can build up a loyal and engaged audience by making your videos accessible only to people willing to pay.
5. Creating loyalty: Creating a paywall also helps to create loyalty among your viewers. When they know they can access your content only by paying, they’re more likely to be loyal to your brand.
Using a paywall can avoid the expense and time commitment of creating ads. And you can also avoid having to partner with another brand or website to display your ads.