In-app Purchase On OTT Apps Are The New Stream Of Revenue Opportunity

Published On December 26th, 2023 5342Media & Monetization

“As the abundance of choices in consuming the video content is highly seen across all sectors, the distribution and revenue opportunities for content creators indeed multiplied.”

The significance of OTT content has surpassed every streaming content and changed the overall landscape of entertainment and any streaming industry. More than delivering high-quality content with the lowest price at a great user experience is not considered before the fact of delivering what viewers want to watch. Thus, OTT apps are the only money-minting platform for content owners, broadcasters & distributors.

Right from content owners, media companies and Pay TV service providers, all are concentrated on one particular factor, Profit, In-app purchase makes it possible to directly benefit the distributors from consumers.

The Significant Spike of OTT In-app Purchase Payments With the Impact of COVID-19

It’s been found that the in-app purchase market is expected to grow $340.76 Billion by 2027 which is 19.8% growth in CAGR.

There’s a huge increase in the in-app subscription payments and purchase in most of the developing and developed countries in parallel to data usage. During this COVID-19 pandemic, the subscription rate of video streaming, gaming, healthcare-related and fitness applications have remarkably increased which is a huge sign for the future OTT or streaming platforms to implement In-app purchase within the platform. With the rise of in-app purchases, many leading brands like Netflix, Spotify, Disney, Tinder, Apple, Sony corporation, etc have witnessed huge growth with in-app purchase functionality.

Big TV apps and streaming brands like Amazon Fire TV, Apple TV, and Android TV offer subscription, transactional and in-app purchasing options to experience great profit in video monetization strategy.

With the below date, it’s clear that the OTT platform apps with in-app purchase generates the highest revenue and the monetization strategy is expected to dominate in the coming years.

Inapp Purchase OTT Stats

A Clear Understanding of the Benefits of In-app Purchases in OTT Apps

Access to Freemium Model

In recent times, the Freemium model has been more effective for video streaming platforms. With freemium content and basic features, you can entice many users to your video on demand platform, and later upgrade or in-app subscription for more features or content.

Delivers Greater Exposure & Personalization

The chances of gaining large volumes of users are high. With In-app purchase in video streaming or VOD apps, the users get a personalized experience towards your platform. The exposure you create within your Android & Apple tv application develops chances of engagement and the sheer volume of greater revenue.

Greater Brand Loyalty

There are so many OTT platform providers in the market, ensuring your users don’t find an alternative to your video streaming platform is important, In-app purchase ensures this scenario. Not letting your users use any other third-party web pages or apps for payment will generate more loyalty within your users.

Sizeable Amount of Revenue Opportunity

With the implementation of in-app purchases such as in-app subscription or in-app purchase to partners content’ creates a great chance of potential revenue chances.

Along With In-app Purchase Functionality, Some Effective Features To Turn Your OTT App Into More Personalized & Lucrative Business

Different Monetization Models

Implementing a diverse in-app monetization model to your OTT platforms is part of revenue generation. In-app monetization models like In-app Advertising (Rewarded Video, Playable Ads, Native advertising), Subscription models, Transactional and more can create potential revenue opportunities.


Configuration with most solid security protocols for OTT apps is a prime factor since all the content has to be protected against piracy. The same applies when it comes to In-app purchase, you have to integrate security protocols like End-to-end encryption, HMAC encryptions to safeguard users’ data and payment information during in-app purchases.


Whether in web, desktop, or mobile app development for iOS and Android, push notifications are great tools to increase engagement with branded OTT TV apps along with in-app purchases. For every in-app subscription or purchase, send offers and other related notifications to keep your users engaged and convert freemium users into subscribers or in-app paying users.

So What’s The Take for Content Owners, Distributors & Media Companies Here?

The digital viewers want their content to be streamed across all the devices they wish to, OTT platforms have no limitations on it. With an in-app purchase, OTT apps have a huge role in video monetization platform the content along with their interest. Along with Subscription (SVOD), and Transactional (TVOD), the In-app purchasing model can be a valuable revenue stream for OTT service providers in the market.

OTT In-app Purchase

Sundar Krishnamorthy

Hi I'm Sundar. Interested in digging deep into business management tools and IPTV media technologies. Love to blog, discuss and share views on business management tips and tricks.

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