Monetization has become a norm for many digital entertainment platforms today, wherever users may enjoy them. Whether it is from popular streaming sites and mobile apps like Netflix, Amazon Prime, and Disney+, or from video games in game launchers like Steam, PlayStation Store, and Google Play, this incorporation of transactions that relate to the features and other content within the platform has changed how value is created within these ecosystems. This same dynamic has reached social gaming and sweepstakes platforms, where the variety of options has grown quickly enough that comparison resources like Gamesville have emerged to help users navigate what’s available before committing to any one platform
The early drafts
Perhaps the earliest model of monetization in digital entertainment are subscription-based services. It is clearly still very effective and most mainstream platforms still employ the model with varying degrees of success.
The most popular out of these platforms, of course, is Netflix, and the streaming giant has since enjoyed a lot of growth from the model ever since they adapted it. It is perhaps considered the pioneer for monetization of a library that consists of movies and TV shows, both exclusive and syndicated. The experience is defined by an ad-free experience while retaining a large base of subscribers through the aforementioned content library that changes every now and then. In addition to streaming the content from libraries, a subscription also entitles the user to download the content and view it on demand, so long as they are still subscribed to the service and if the license for the content hasn’t ended for Netflix yet.
Today, the service has attained many rights to stream sports leagues content, such as boxing content from Jake Paul, NFL matches, and WWE premium live events. It has also extended to a few video games like Red Dead Redemption. All of these are retained by award-winning shows like Stranger Things or Narcos.
Inversely, advertisement-based monetization is the other prevalent model in most digital entertainment platforms. These are mostly free video streaming platforms funded with commercial breaks, not so different from public broadcast or cable TV channels. Youtube is the most popular example of this after Google acquired the platform, with some videos having ad reads embedded in the content itself. It rolled out not too long ago, which was a jarring move for long-time users of Youtube. It has then signified the move for the platform to market their premium service. Called Youtube Premium, the service now lets users experience the platform ad-free and it also shares most of the same features as the Netflix app such as video downloads.
There are also transaction-based models for monetization. If a user is interested in just a handful of videos instead of an entire library, they can choose this method instead. Apple TV, for example, hosts specific movies for rent that are charged differently from their library originals. However, if a user wants to own a copy of the movie so they can watch it whenever they want, they can be bought off the digital storefront and it will be tied to their account. This model provides flexibility for viewers who prefer not to commit to a subscription and is particularly effective for premium, exclusive, or time-sensitive content like new movie releases and live events.
Monetization in games
Monetization models in games, whether it’s in online casinos or console video games, has gone through a unique trajectory that has attracted attention coming from all sides of their affected communities. Perhaps it is because of the many ways it can monetize its many components.
Online casinos would usually have freemium models installed for their services. Free spins are the most prevalent offers for this particular form of monetization, where the game gives out more than a handful of bonuses so players are more likely to deposit their small wins to the establishment. Not only does this mean profit for the establishment, but also effective retention.
All of these monetization models came from very simple ideas but entertainment demands creativity. This is why the industry tweaked monetization models with intuitive ways to help increase growth and profit.